More Americans own and operate a cellphone (90%) than have a bank account (80%).The underbanked market is a vast with a buying power of more than $1 trillion annually. As a result lots of great businesses like our portfolio companies MoneyLion, APDS and Slide are being built to service this enormous market.
The article tells one particularly illuminating story of a professor who took his daughter to open a savings account at their local bank: “We put in $50, and I had the idea that we would go to the bank every month and make a deposit. We would watch the money grow along with interest. The next month we went back to make the next deposit, and lo and behold there was only $45 in the account. Turned out that the bank was charging for low balances. End of lesson.” He got the bank to return the $5 and closed her account — and his own. Against this backdrop it isn’t surprising that the young and relatively affluent are joining the ranks of those looking for a better way to manage their money.