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, lots of whom are one of the tens of an incredible number of underbanked and unbanked americans.
Based on the Federal Reserve, 16% of grownups had been underbanked in 2018, meaning they’d a banking account but additionally utilized services that are alternative payday loan providers and check-cashing services вЂ” solutions that Gig Wage creator and Chief Entrepreneur Officer Craig J. Lewis called вЂњpredatory.вЂќ
The issue is especially urgent for Ebony individuals, whom made within the greatest percentage of this underbanked, at 35per cent in contrast to 11per cent of whites. Ebony households additionally make up the highest percentage associated with 7.1 million households that have no banking account at all, based on the Federal Deposit Insurance Corp.
вЂњBanks are organized in a fashion that causes it to be very cheap to get into money when you have cash, and incredibly costly to get into cash if youвЂ™re low on funds,вЂќ stated Aaron Klein, an other of financial studies in the Brookings Institution. вЂњIt is extremely costly to be bad. Economic solutions certainly are a big good reason why.вЂќ
Green Dot and Gig Wage will give you the вЂњfirst comprehensive end-to-end solution when it comes to gig economy,вЂќ where as much as 40% of employees in some sectors are unbanked or underbanked, relating to Lewis. The aim is to give you a suite of solutions that address just how money moves through the whole ecosystem.
These gig workers could be surviving day to day while many in the traditional workforce operate on a check-to-check basis. But without monetary infrastructure, they canвЂ™t access their funds as often or cheaply.