Green Dot partners with Gig Wage to provide workers that are underbanked

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, several 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 that they had a banking account but additionally used alternate solutions like payday loan providers and check-cashing services — solutions that Gig Wage creator and Chief Entrepreneur Officer Craig J. Lewis called “predatory.”

The thing is specially urgent for Ebony individuals, whom made up the proportion that is highest of this underbanked, at 35% weighed against 11per cent of whites. Ebony households additionally make within the proportion that is highest of this 7.1 million households that have no banking account after all, in line with the Federal Deposit Insurance Corp.

“Banks are organized in a manner that helps it be really cheap to gain access to cash when you have money, and incredibly costly to gain access to cash if you’re low on funds,” stated Aaron Klein, a other of financial studies during the Brookings organization. “It is extremely high priced to be bad. Monetary solutions are a definite big reasons why.”

Green Dot and Gig Wage provides the “first comprehensive end-to-end solution when it comes to gig economy https://titlemax.us/payday-loans-ks/marion/,” where as much as 40% of employees in some sectors are unbanked or underbanked, according to Lewis. The target is to provide a suite of solutions that address the way in which money moves through the ecosystem that is entire.

These gig workers could be surviving day to day while many in the traditional workforce operate on a check-to-check basis. But without economic infrastructure, they can’t access their cash as much or cheaply. And with out a bank-account, they can’t set earnings aside for cost savings, fees or even a 401(k). Plus »