According to 2017 data from the FDIC 47 percent of Black Americans were underbanked, compared to 20 percent of white Americans; a Pew research survey from April found that 73 percent of Black adults did not have savings to cover a few months of expenses, 47 percent of white adults were found to have the same problem; there are clear gaps in the banking system for Black consumers and two fintechs are aiming to solve that problem; Stoovo CEO Hantz Fevry says the banking system was not designed for people who live paycheck to paycheck or have high income volatility; the closing of branches in low income neighborhoods has also hurt these communities and added to the perception that banks do not have a vested interest in helping; digital bank Current says their focus on those living paycheck to paycheck has worked to help Black Americans, in fact 50 percent of Current’s more than 1 million users are Black; Current gives access to paychecks two days early, they do not look to monetize their deposits but instead they make money on interchange fees; Stoovo helps users find work from gig economy jobs by using AI to break down data it aggregates from platforms like Uber, DoorDash, Postmates and TaskRabbit; while fintech has delivered a better experience it has yet to deliver on the promise of democratizing access to all equally. American Banker.
