Parekh explains how banks & financial technology can help underserved populations build wealth after release of new national NPR poll
HOUSTON, Oct. 19, 2021 /PRNewswire/ -- Khalid Parekh's recent article in Fast Company magazine explains how his membership-driven bank Fair is offering solutions for underserved communities that usually pay excessive bank fees or even get completely pushed out of traditional banking services. He also explains how mission-driven neobanks like his are working to make real change for the better. With more than half of Americans lacking an adequate emergency fund, improved banking solutions could be a game changer for many.
Many are still struggling despite billions of dollars in relief money from federal and state governments, according to the new research from NPR, the Robert Wood Foundation and the Harvard T.H. Chan School of Public Health.
"What we have here is a lot of people who are still one step from drowning financially," said Robert Blendon, emeritus professor of health policy and political analysis at the Harvard Chan School.
Findings from the NPR study include:
Thirty-eight percent of households across the nation report facing serious financial problems in the past few months.
Among Latino, Black and Native American households, more than 50% had serious financial problems, while 29% of white households did.
This disparity is echoed in many other poll findings, with the minority families bearing a disproportionate share of the pandemics' socio-economic impact.
In his Fast Company article Parekh cites a Bankrate survey showing that Black and Hispanic respondents pay twice as much in banking fees as white respondents. He also explains how a 2019 Pew Research Center study shows that about 25% of Hispanic and Black Americans can only access the internet at home with their smartphones. Only 12% of white Americans are in the same situation.
Parekh also lists additional ways that Fair bank is designed to lift up underserved populations by offering:
Transparent membership with no overdraft fees, no balance minimums and no additional fees at a network of over 55,000 ATMs
A new wealth building investment feature that can return annual dividends of up to 4%
International money transfers with no additional fees
Debit cards for children included with membership
According to NerdWallet, the best savings accounts are currently only paying consumers between 0.2% and 0.6%. Fair wealth building accounts that can earn up to 4% annually in dividends is about tenfold higher than that.
Membership enrollment is available at bankwithfair.com, and the Fair mobile app can be downloaded in the Apple App Store and Google Play Store. Fair membership can be completed with a social security number or a government-issued ID, such as a valid passport or driver's license. Memberships are $69 a year or $6.99 a month. Fair is also offering a lifetime membership for a one-time fee of $99 until Dec. 31, 2021.
Fair is an ethical, socially responsible neobank and digital financial services platform. Fair offers halal-certified, membership-based services to eliminate surprise fees that can prevent financial freedom and savings opportunities. Dedicated to values that place people over profit, Fair practices socially responsible investing (SRI), environmental, social, and corporate governance (ESG) investing and is halal-certified through AAOIFI. Fair donates 2.5% of its profits to global refugee causes and racial economic empowerment initiatives. Fair banking services are provided by Coastal Community Bank, member FDIC.
Investment and retirement services will be provided by Fair Invest, LLC.
Investment and lending products are provided by Fair Invest, LLC, a registered investment advisory firm with the Securities and Exchange Commission. Custodial and brokerage services are provided by Apex Clearing Corporation, a member of the New York Stock Exchange (https://www.nyse.com/), FINRA (https://www.finra.org/), and SIPC (http://www.sipc.org/).
Please note that these products are:
Protected by SIPC insurance for Fair Invest, LLC accounts on APEX Platform, not insured by FDIC insurance. SIPC insurance covers customer claims up to $500,000, with a maximum of $250,000 for cash claims. For details, see www.sipc.org
Not a deposit or other obligation of, or guaranteed by Coastal Community Bank, Member FDIC, or any bank affiliate
Subject to risk including possible loss of invested principal. This risk is assumed by Fair Invest, LLC so member's invested principal will not be impacted by such losses. For details, see https://bankwithfair.com/terms-conditions/
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