Stoovo and Current Helping to Solve Banking for Black Consumers

According to 2017 data from the FDIC 47 percent of Black Americans were underbanked, compared to 20 percent of white Americans; a Pew research survey from April found that 73 percent of Black adults did not have savings to cover a few months of expenses, 47 percent of white adults were found to have the same problem; there are clear gaps in the banking system for Black consumers and two fintechs are aiming to solve that problem; Stoovo CEO Hantz Fevry says the banking system was not designed for people who live paycheck to paycheck or have high income volatility; the closing of branches in low income neighborhoods has also hurt these communities and added to the perception that banks do not have a vested interest in helping; digital bank Current says their focus on those living paycheck to paycheck has worked to help Black Americans, in fact 50 percent of Current’s more than 1 million users are Black; Current gives access to paychecks two days early, they do not look to monetize their deposits but instead they make money on interchange fees; Stoovo helps users find work from gig economy jobs by using AI to break down data it aggregates from platforms like Uber, DoorDash, Postmates and TaskRabbit; while fintech has delivered a better experience it has yet to deliver on the promise of democratizing access to all equally. American Banker.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

Sign up for our Newsletters

Every morning the Fintech Nexus News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!