The New York Times ran an interesting story in the Business Section this weekend, titled, “First Make Money; Also Do Good.” Basically, it argues that corporate philanthropy is small potatoes and corporate social responsibility not much more than disingenuous marketing (“hypocritical window-dressing” according to Milton Friedman). Citing Harvard’s Michael Porter’s…
Good Well
Where’s our next James Gutierrez (in NYT) or Patrice Peyret? Calling rock-star entrepreneurs who are determined to improve the lives of the underbanked. Our fund is a “double bottom line” venture fund. This means we execute against two goals: to make excellent financial returns and to demonstrate we’re investing in…
And the Winner is…. GoalMine
Over 600 underbanked missionaries, mercenaries, bankers, regulators, entrepreneurs, investors CEOs and middle-managers descended upon New Orleans last week. Together, they represent the single most qualified and discriminating judge of what is hot and what is not in our sector. After watching live demonstrations and Twitter-guided Q&A with the finalists in our Core Underbanked…
Underbanked Inspire a Wealth of Services
My friend and colleague, founder and CEO of CFSI, Jennifer Tescher, writes a monthly column for the American Banker. This month it was on the Core Challenge (see my previous post), available here for those with a subscription. For those who don’t, here’s a long excerpt, and my encouragement to…
The Core Challenge Finalists
A couple months ago we announced the first Core Underbanked Innovation Challenge for the most innovative new products serving the unbanked and underbanked in America. Since our fund is the premiere venture fund targeting innovation for this segment, it seemed like a logical thing to do. Much to our…
Sosas Address the Underinvested
The Sosa Brothers drive me nuts! Mostly because I’m jealous. Really. They are visionary, they are charismatic, they’re successful, they are creative, they live in Austin, they have the word “Lab” in their company name, and they are committed to improving the lives of millions of people who have less…
Under the Mattress
One of the things “mainstream” (as opposed to “alternative”) (and I use those quotes deliberately, because those labels should actually be reversed) financial services rarely consider is how much wealth is found underneath the mattress, especially amongst the un- and underbanked. This story, an estimate of how much is hidden…
So Much Debt, too few Goals
The Great Recession came about, in part, due to consumers’ eyes being larger than our stomachs. We wanted instant gratification, and it was available in spades. The instant gratification paradigm is in tension with that of delayed gratification. Delaying gratification requires frugality and planning. That planning is the process of…
Wabi Sabi, Wesabe
One of the Personal Financial Management (PFM) favorites, Wesabe, is shutting its doors. CEO Marc Hedlund wrote a doleful note to his users today. Understandably in denial of shuttering his business, he euphemistically referred to the “discontinuing the Account Tab,” instead. After five years and $4.7 million, all raised in…
WalMart vs GreenDot
Last week GreenDot’s IPO was rumored in question. It could be due to interchange changes or concentration risk. In either case, GreenDot’s relationship with WalMart is pivotal and not always aligned. First, interchange: Given GreenDot reports 30% of its income derives from interchange fees, the pro-retail pending interchange legislation might…