Green Dot lovers with Gig Wage to provide underbanked workers

Green Dot lovers with Gig Wage to provide underbanked workers

Green Dot is partnering with and spending $2.5 million in Gig Wage to supply solutions like debit cards and cash management to gig workers, a lot of whom are one of the tens of millions of underbanked and unbanked americans.

In accordance with the Federal Reserve, 16% of grownups had been underbanked in 2018, meaning that they had a banking account but additionally utilized alternative solutions like payday loan providers and check-cashing services — solutions that Gig Wage creator and Chief Entrepreneur Officer Craig J. Lewis called “predatory.”

The thing is specially urgent for Ebony individuals, whom made up the greatest percentage regarding the underbanked, at 35per cent compared to 11per cent of whites. Ebony households additionally make up the proportion that is highest of this 7.1 million households who possess no banking account at all, based on the Federal Deposit Insurance Corp.

“Banks are organized in a manner that causes it to be really cheap to gain access to money when you have cash, and incredibly high priced to get into cash if you’re low on funds,” stated Aaron Klein, a fellow of financial studies during the Brookings organization. Read more of this post