Green Dot is just a closely held business with a couple of major investors which have associates for the slim world regarding the prepaid debit card market. Green Dot has filed a credit card applicatoin to purchase Bonneville Bank, a tiny one-branch state-chartered bank in Utah. The Federal Reserve happens to be reviewing that application. There’s been some conversation concerning the part of Wal-Mart in this deal. Will this enable Wal-Mart to efficiently acquire a bank? This is certainly a question that is valid but i really believe there is another pressing problem which should be solved.
The rights to an unsullied bank charter, the Fed could empower high-cost subprime lenders to dramatically increase the scope of their business by giving the owners of Green Dot. This deal involves a dollar that is small, nonetheless it holds the potential to influence an incredible number of households.
The unbanked and underbanked marketplace is vast. Some estimates place the size of the combined team at since big as 110 million, based upon exactly exactly how it really is defined. A majority of these households are unbanked since they have not honored their commitments. But, others are underbanked given that they don’t possess a credit history that is substantial. Slim file and no-file customers have time that is hard a banking account, aside from a bank card, and even though they will have never defaulted on that loan.