Highlights on Why Citizens Are Unbanked or Underbanked by James Gutierrez
Being underbanked has become an issue to a good number of Americans. While James Gutierrez assessed the situation, he concluded that some households do not access banking services, which negatively impacted their lives. 25% of America’s families do not go for financial services at their banks or have not held any bank account. Thanks to the pandemic that exposed that system by showing gaps that exist.
The renowned entrepreneur and owner of FinTech, James Gutierrez, tries to unravel how there is inequality in the community on access to financial services. He mentions two things that may have brought cracks in the financial services, making it unfavorable to some Americans.
Reasons why some Americans are unbanked
The disparity in income levels
Statistics show that about 19% of American households who earn less than $30,000 annually are either underbanked or unbanked. With the hash saving and loaning conditions in America, these people find it difficult to open and maintain a bank account. For instance, to open a savings account, you need to have some deposit (which people lack) and either pay a bank account maintenance fee or maintain the minimum bank account balance. On the other hand, for one to get a loan, the bank needs a credit history, which immigrants do not have. The above conditions leave Americans unbanked or underbanked.
Inaccessible banking services
Considering the various categories of people in America, James Gutierrez highlights how bank services are inaccessible:
• If one does not have enough money to bank, they see no need to open a bank account
• When one is in the dark concerning the available bank services, they will also not open a bank account
• Lack of a social security number for the immigrants will bar them from opening bank accounts
The above reasons create a leeway to have unbanked citizens. Being a proponent of inclusivity, James Gutierrez fights through FinTech to ensure equal access to financial services. James Gutierrez’s: Twitter.