Hispanic owned neobanks want to improve Latino's financial inclusion
Latino banks are increasing in number and popularity. Here, you will find information about Latino banks as well as all the benefits that they can offer to their customers.
Hispanic owned banks are private, community-oriented financial institutions that primarily serve the Hispanic population in the United States. Most of these banks have a small number of branches and do not offer banking services to all Americans.
With the rise of fintech and digital banks, community oriented financial services are moving to the digital space. And here comes Latino fintech.
Latin American fintech is a sub-category of fintech that mainly focuses on investment and financial services. These fintechs offer inclusive financial services to the Latino and Hispanic community in the United States.
The financial inclusion of Latinos in the U.S.
And for a reason. In the United States, as of 2016, Latinos make up 17% of the population but only 13% of banks' loan applicants. This is because many people have misconceptions about what makes a good borrower.
Language barrier also plays a major role in the financial exclusion of the Hispanic community. Whose first language is Spanish, not English.
Latino neobanks can improve the financial literacy of their customers simply translating the user interface of their apps and websites, as well as their educational content.
And, of course, by providing customer support in Spanish.
Hispanic fintech in the United States
Greenwood is a fintech that aims at “close the racial wealth gap” in the United States of America.
Greenwood wants to bring modern, digital banking to the African American and Latin communities. Read more here
Valor is another fintech for Latino and Hispanic population, set to launch in 2022.
Valor will provide banking, savings, investing, instant cash, cheque deposits and early paycheque functionality. Valor will also offer crypto services (buying, selling, transferring) and financial literacy content in Spanish.
The financial inclusion of the Latino community will also be pursued via an intuitive products and design, to rebuild the confidence in the banking sector.
Valor fees and conditions:
- no monthly or overdraft fees
- no minimum balance
- free debit card
- funds up to 250,000 USD insured by FDIC
Valor’s founder are the CEO Paran Gupta and the CTO Sankate Sharma.