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For millions of Americans, accessibility to banking institutions is a given, but for many underserved communities, banking is not as accessible and its lack can negatively impact financial prospects. As such, underbanked communities are often relegated to the margins where they must rely on nontraditional financial institutions like check cashers and payday lenders.
Families that rely on nontraditional financial institutions are often at the whims of predatory practices. Check-cashing outlets can cost anywhere from 1% to 12% of the value of the check. Depending on cash or money orders to pay for essentials can cost valuable time and resources; if you have to go to the post office to purchase a money order to pay for rent, that is far more time-consuming than paying online with a debit card. People who go to a payday lender instead of a bank for a loan can end up paying over 300% interest and nearly 1% in fourpayday loans are reborrowed nine times or more.
Marginalized communities and immigrants are underbanked at higher rates than their white counterparts. In 2019, 12.2% of Hispanic households and 13.8% of Black households were underbanked compared to 2.5% of white ones. The disparity exists for a number of reasons ranging from distrust of financial institutions to language barriers to systemic barriers like hefty ID requirements and high minimum balances.
For underbanked communities, there is a draw to nontraditional financial institutions and a need for those institutions to empower.
Inter Is A Nontraditional Financial Institution With A Focus On Inclusivity
In
After this acquisition, the company integrated USEND’s offerings into the Inter Super App, bringing its benefits to both
Inter is also working to expand services for its customers and recently announced they have become a certified provider with Amazon. Now Inter’s Brazilian clients who are sellers on Amazon will be able to receive and send payments directly to their Inter accounts.
The company is actively working to build ties and accountability within immigrant communities in
For underbanked communities, having access to nontraditional financial institutions like Inter can help make life easier by opening doors and providing a safety net against often-predatory financial services like payday loans.
This article was originally published on Benzingahere.
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This material may contain forward-looking statements regarding Inter, anticipated synergies, growth plans, projected results and future strategies. While these forward-looking statements reflect our Management’s good faith beliefs, they involve known and unknown risks and uncertainties that could cause the company’s results or accrued results to differ materially from those anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to, our ability to realize the amount of projected synergies and the projected schedule, in addition to economic, competitive, governmental and technological factors affecting the Bank, the markets, products and prices and other factors. In addition, this presentation contains managerial numbers that may differ from those presented in our financial statements. The calculation methodology for these managerial numbers is presented in Inter’s quarterly earnings release. Statements contained in this report that are not facts or historical information may be forward-looking statements under the terms of the Private Securities Litigation Reform Act of 1995. These forwardlooking statements may, among other things, beliefs related to the creation of value and any other statements regarding Inter. In some cases, terms such as “estimate”, “project”, “predict”, “plan”, “believe”, “can”, “expectation”, “anticipate”, “intend”, “aimed”, “potential”, “may”, “will/shall” and similar terms, or the negative of these expressions, may identify forward looking statements. These forward-looking statements are based on Inter's expectations and beliefs about future events and involve risks and uncertainties that could cause actual results to differ materially from current ones. Any forward-looking statement made by us in this document is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. For additional information that about factors that may lead to results that are different from our estimates, please refer to sections “Cautionary Statement Concerning Forward-Looking Statements” and “Risk Factors” of Inter&Co Annual Report on Form 20-F. The numbers for our key metrics (Unit Economics), which include active users , average revenue per active user (ARPAC), cost to serve per active cliente (CTSAC) and cross selling index (CSI), are calculated using Inter’s internal data. Whether based on what we believe to be reasonable estimates, there are challenges inherent in measuring the use of our products. In addition, we continually seek to improve estimates of our user base, which may change due to improvements or changes in methodology, in processes for calculating these metrics and, from time to time, we may discover inaccuracies and make adjustments to improve accuracy, including adjustments that may result in recalculating our historical metrics. The financial information, unless otherwise stated, is presented in millions of reais, in accordance with the consolidated financial statements, in IFRS.
Contact Details
ri@bancointer.com.br
Company Website
https://www.bancointer.com.br/
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