Last week our friends at Green Dot finally filed for an IPO. This is exciting news in a recessionary environment, but especially for a company which has seen significant growth during this recession. Green Dot’s revenues have roughly doubled every year since 2007, as did their operating income. The JP…
Do be Square
The initial hype associated with Jack Dorsey’s Square appears to have waned. I’d like to add my 2c about how I think it can be game changing for the underbanked: to power millions of micro-merchants, to create wealth, to create an ecosystem of payments and credit services. An iPhone cost…
Just-in-time learning
When I explain my day-job, quite a few people believe that the way to solve the underbanked “problem” is through financial education. Many banks think the same way. They are right, of course. But it’s not so simple as just teaching “these people” how basic financial services work (never…
Will Obama help the underbanked?
The Obama administration certainly has the industry under fire: banks are likely to lose 70% or more of the fees they currently make from overdraft fees. Sunday, Citibank settled with New York AG Cuomo to keep a million low-end checking accounts open and free for a year at an approximate…
Syndication
I’m now a pundit on Pymnts.com, which is a delightfully geeky site about the payments industry. It’s well curated, clean, crisp and features paid content in very creative ways. It’s put together by the folks at Business Wire (the press release company) and Market Platform Dynamics (payments consultants). It’s a…
Depository-AFS Hybrids
Last week, unnoticed to most of the world, something noteworthy happened: a hybrid credit union and check-casher opened in East San Jose, CA. This is not without precedent (CheckSpring Bank opened a bank-like check cashing branch in the Bronx, Kinetka Federal Credit Union bought the Nix Check Cashing chain in…
Micro business
We focus on retail finance for the underserved, underbanked, unbanked, LMI. We’re committed to do so in a way that’s commercially viable and good for people. With “good” we mean that it improves their lives. And with that we mean it increases economic stability, increases assets and thereby the overall…
Underbanked Census Survey
The FDIC came out with some useful information in December. It chartered the Census to conduct a survey of the un- and underbanked in the US. Largest sample for a report of its kind. The results can be found at www.economicinclusion.org. Roughly, the findings affirm CFSI smaller, but deeper survey…
Credit Softening
Wow, there is so much going on these days! Exciting times. My colleagues at CFSI and I have long been interested in what we call “alternative credit.” Basically, it’s the use of new types of data to help lenders figure out good risk from bad for the 50 million Americans…
Crooked Smile
I’m wearing my Gonzo Banker T-shirt today, which is one of the only connection points between my friends, and their affinity for the late Hunter S Thompson, and my work, if only vaguely. Gonzo Banker is a newsletter from bank consulting firm Cornerstone Advisors and it’s always surprisingly good. Recently,…