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I have some experience in this area. From what I've seen any company involved with lending to the underbanked is going to operate pretty similarly to a payday l
by utnick 11y ago
I have some experience in this area. From what I'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.
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.
- danharaj 11y ago> If it were possible, one of the payday lenders would do it and corner the market. The market is efficient; therefore the market is efficient.
- mafribe 11y agoFor many unbanked, getting loans might not always be the highest priority. Just a safe place to park one's money is valuable. Imagine you are sleeping rough on the streets, where do you store your few monetary possessions? If you keep them on your body, they are likely to get stolen. A basic bank account as Someone1234 describes it, would help.
- utnick 11y agoTotally, I agree, I think someone1234 is describing a UK law that provides these basic bank accounts to everyone. I think the underbanked will be helped more through laws and regulations like that than by a new company or something.