Lower-income households spend ~80% of income on recurring necessities, making costly, inaccessible financial services especially harmful (p.2). In the U.S., 7% are unbanked and 20% underbanked; digital finance can reduce cash reliance (49% of U.S. payments are digital) and expand access, but needs segment-specific solutions (pp.13–14). Three focal areas—lending, payments/remittances, and personal finance/financial literacy—offer opportunities: alternative underwriting and multi-product expansion in lending (pp.18–20); remittance cost reduction amid rising digital payments (pp.22–25); and low-cost robo-advice and education to close racial literacy gaps (pp.27–30). Headwinds include regulation, competition driving fee compression, and macro risks; tailwinds include growing VC interest and foundation support for literacy (pp.15,25,30–31).
Some Identified Companies
- LendingClub: alternative lending leader cited in lending overview (p.18).
- BitPesa: blockchain-enabled cross-border payments entrant (p.22).
- Wealthfront: robo-advisory platform in personal finance section (p.27).
Notable Investors
- FINRA Foundation: highlighted for funding financial literacy initiatives (p.27).
- J.P. Morgan Asset Management: listed among major players in personal finance (p.27).
- Charles Schwab: cited as a major player influencing consumer investing access (p.27).