On Bauer Business Focus — A conversation on providing financial solutions to the unbanked population with Andrew Schneider, business reporter for KUHF 88.7 FM.
In June 2011, the FDIC sponsored a national survey of the unbanked and under banked households, revealing 8.2 percent of U.S. households do not have bank accounts and rely on alternative financial services, including payday loans and check cashing businesses .
Arif Momin, co-founder of EmagineNET Labs, spoke to Bauer Business Focus recently about how providing a tailored banking system to the public could be a solution to the national challenge of lacking financial literacy.
“I think the issue with the unbanked isn’t of trust or not, it’s relevance,” Momin said. “I think the question is, do they find the services of the banking world relevant for their style? People are looking for alternate financial institutions to meet their financial needs, so trust is one element and relevancy is another.”
With over ten million households unbanked, Momin hopes that finding a solution will help the population who don’t currently have a bank account enjoy certain luxuries that alternative financial services may not provide.
“How different would our life be if we had to prepay for our car, our education, our iPhone? These are things we get subsidized that the unbanked world doesn’t get. When companies take these services and put it in the hands of the consumers, it is turbo-charging their progress and it’s not giving charity, it’s leveling the playing field so that they can enjoy these luxuries too.”
Click here to hear the full interview.