James Gutierrez: Fighting for the Underbanked
More than 49 million people in the United States lack access to basic banking tools and systems. These so-called underbanked individuals are largely lower-income and often minorities. Nineteen percent of American households making $30,000 or less are unbanked or underbanked. This lack of basic banking tools leads them to spend more than nine percent of their income on alternative financial solutions, like checking cashing stores and prepaid debit cards. Entrepreneur James Gutierrez is seeking to change this cycle. His latest venture will create an inclusive, mobile-first platform designed to connect underbanked communities with insurance and banking solutions. According to Gutierrez, this new venture aims to provide “reasonable, affordable and accessible options to make purchases, build credit and establish financial security”.
Why people are underbanked
There are a number of reasons why good, working people lack a basic checking or savings account. They may not have a Social Security number necessary to open an account. They may have bad credit and not be able to pass the basic credit check necessary for a traditional bank account. Or, it might be a more basic reason, such as not knowing how to approach a bank about an account. Whatever the reason, the situation makes it very difficult for families to break out of the paycheck-to-paycheck rut and create financial security for their families.
Solving the underbanked problem
James Gutierrez has been working for years to help create solutions for the underbanked and to bring this issue to the attention of legislators, both at the state and the national level. His company, Oportun, which was in business from 2005 to 2012, helped nearly half a million Hispanic families get small loans to help them out during financial challenges. His latest venture will create an inclusive, mobile-first platform designed to connect underbanked communities with insurance and banking solutions. According to Gutierrez, this new venture aims to provide “reasonable, affordable and accessible options to make purchases, build credit and establish financial security”.
About James Gutierrez
In addition to working to help solve the underbanked issue in America, James Gutierrez is the CEO and co-founder of Insikt Ventures, an early stage investment fund. Just a few of the companies that Insikt has invested in include Listol, StubHub and OKCupid. Gutierrez also sits on the executive boards of the Silicon Valley Leadership Group, Talent Inc and his daughter’s private school.
Gutierrez earned a BA in economics from Yale University and a MBA from Stanford Graduate School of Business. He has served on the San Francisco Federal Reserve Board’s Centennial Advisory Committee and its Consumer Advisory Council. In 2010, “Business Week” magazine named Gutierrez on their list of the most promising social entrepreneurs of the year. such as not knowing how to approach a bank about an account. Whatever the reason, the situation makes it very difficult for families to break out of the paycheck-to-paycheck rut and create financial security for their families.