E D I T O R’ S Q U E S T I O N or California, the state is a place of haves and have
E D I T O R’ S Q U E S T I O N or California, the state is a place of haves and have
F nots, especially as a state with an increasingly high cost of living and a growing population under the poverty line. Reliance on key state and federal government services continues to grow.
A big reason for FinTech tools and services is for access to historically underserved communities. In California, more than one in five do not have a traditional bank account. This is largely disproportionate to communities of colour and seniors who may not be fluent in brick-and-mortar services.
Part of the reason that is also top of mind – connecting services and access – is the concern over fees but go towards services like money transfers and payday lenders since they are naturally underbanked. The other piece is over the ability to keep minimum account balances and are hit with overdrafts that could be avoided.
And as cash becomes rarer, FinTech plays a key role in providing streamlined service delivery – with as the phone apps – to make payments and bring in regular individual financial accounting. Finally, there are a number of aspiring California small business entrepreneurs who do not necessarily have access to traditional credit or banking services. Many products in the FinTech space have found ways to offer lending alternatives and more tailored services that utilise data to make access to capital more possible and tangible. �
JEFF LE, MANAGING PRINCIPAL AT 100 MILE STRATEGIES
www. intelligentfin. tech
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