Green Dot is a closely held business with a couple of major investors which have connections for the slim world associated with debit card market that is prepaid. Green Dot has filed a credit card applicatoin to purchase Bonneville Bank, a tiny one-branch bank that is state-chartered Utah. The Federal Reserve happens to be reviewing that application. There’s been some conversation concerning the role of Wal-Mart in this deal. Will this enable Wal-Mart to efficiently possess a bank? This is certainly a question that is valid but in my opinion that there’s another pressing problem that should be solved.
I do believe that this deal could offer brand brand new vigor to your lending industry that is payday. The rights to an unsullied bank charter, the Fed could empower high-cost subprime lenders to dramatically increase the scope of their business by giving the owners of Green Dot. This deal involves a dollar that is small, however it holds the possibility to affect scores of households.
The unbanked and market that is underbanked vast. Some estimates place the size with this combined team at because big as 110 million, based upon exactly how it really is defined.