There may be an assumption that all Americans have equal opportunities when it comes to financial services. Those who border wealthy neighborhoods think that access to banking opportunities is the same for all people. The truth is that some Americans undergo numerous challenges in the financial sphere since their area is underbanked. Though some individuals and neighborhoods have excellent access to many financial advisers and their credit limit is high, this does not replicate to other people’s estates. In the same breath, James Gutierrez has come out to explain different inequalities that exist in the financial world.
James Gutierrez highlights that the recent data indicates that a quarter of all households do not own any bank account while those with bank accounts do not seek financial assistance from their banks. As much as people seek to be financially solvent, they cannot achieve anything at the end of the day. James has tried to address inclusive banking as the only means to end this inequality and how his fintech investors company has achieved it.
One of the reasons for unequal access to financial opportunities that James Gutierrez discusses is the limitation in banks’ accessing services. He explains how the issue takes two dimensions: some people are illiterate on what the banks have, while some are earning so little to open bank accounts. Besides, we have immigrants who may have enough knowledge about the banks and credit and money to keep, but they cannot access banks since they lack primary documents. These people even know how to save in banks and apply for loans, but they lack a chance to own a bank account. See This Article.
Following the above reasons, the families become underbanked, which makes their life expensive. They will get cuts in their incomes through inevitable check-cashing operations and receive high-interest loans. When comparing various families, the Caucasian household will easily access bank services compared to the Hispanic and African-American households, which exposes the inequality. These are the things that James Gutierrez wants to address through