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US ventures aimed at helping the unbanked are taking cues from developing world

21 pointsby hotgoldminerover 9 years ago

4 comments

Someone1234over 9 years ago
They should look at the UK instead.<p>&quot;Basic bank accounts&quot; were a game changer. They&#x27;re what the US calls &quot;checking accounts&quot; (minus the checks) with them you get a debit card, the ability to pay in, take out, and transfer money; however absolutely zero ability to go overdrawn (no loan, no line of credit, etc).<p>But everyone could get one, even those who declared bankruptcy, since it was decided that it was not-viable in the 2000s for someone, anyone, to not own or have the ability to own a bank account. Which is right.<p>Banks make money via the spread between the general interest rate and the lower interest rate offered by the account, in addition to sales opportunities (e.g. offering to upgrade to a full account, savings accounts, small loans, etc).<p>However in general in the US banks are under-regulated and antiquated. Banking in the US Vs. UK feels like going back in time twenty years, everything is slow, complex, expensive, they charge for a basic checking&#x2F;current account(!), you still have to physically go to a branch [ever!], transferring money between two banks is annoying, checks still exist, their anti-fraud is pathetic, and they&#x27;re only getting C&amp;P right now.<p>PS - Although I am at Wells Fargo so maybe my opinion about US banks is really more Wells Fargo biased than general banking. Maybe there are better US banks, but I don&#x27;t know who they are.
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utnickover 9 years ago
I have some experience in this area. From what I&#x27;ve seen any company involved with lending to the underbanked is going to operate pretty similarly to a payday loan company... A lot of these new companies want to appear different and go out of their way to never mention payday lending. But the terms are pretty similar at the end of the day.<p>Lending to this segment of the population is fraught with write-offs, its just not possible to give a great deal on loans with that kind of risk unless you are a non-profit. If it were possible, one of the payday lenders would do it and corner the market.
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roma1nover 9 years ago
Compte-Nickel, a French operation, has a basic package available that includes a debit card, IBAN number (to receive or wire funds) for 20 euros&#x2F;year. No other fees since there is no possibility of being overdraft. Payments are free, although ATM withdrawals are paid (something like 2 euros&#x2F;withdrawal). It can be bought from tobacconist&#x27;s stores and refilled there. An ID is required but nothing else (so it is available to homeless people). Overall seems like an interesting, non-preying offer.
thrownaway2424over 9 years ago
The article doesn&#x27;t address one of the primary issues of the &quot;unbanked&quot; in the US: black people don&#x27;t trust white people with their money.
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