More than 22 million Americans are unbanked or underbanked, lacking access to traditional financial services. This lack of access leaves millions of Americans vulnerable to predatory and expensive financial services, leading to excessive fees, debt spirals, and poor credit. According to the FDIC, gaps in traditional banking particularly impact communities of color: about 14 percent of Black households and 12 percent of Latinx households are unbanked, compared to 2.5 percent of White households. 

Fintech companies are filling this gap by extending credit and opening access to financial services to historically marginalized communities, helping create a more inclusive and equitable financial system for consumers and small businesses. In partnership with minority depository institutions (MDIs) and community development financial institutions (CDFIs), fintechs are driving competition and fostering innovation for consumers, small businesses, and the economy. 

Read more about fintech’s role in creating a more inclusive and equitable financial system here.