Over 25 percent of U.S households are unbanked or underbanked, and 86 percent of that group are households of color. With a mission to put people’s trust back in banks and close the wealth gap caused by historical discrimination, Paybby has created a completely free, digital banking service that will allow communities of color to build wealth.
An FDIC survey revealed that the main reason people chose to not use a bank is simply that they don’t have enough money to keep in an account. Most U.S banks require a minimum account balance to not only start an account but to keep it. The survey respondents also said that they don’t trust banks or have privacy concerns.
These disparities in banking have caused the wealth gap to skyrocket over time. “The Black-white economic divide is as wide as it was in 1968,” a recent Paybby video explained. “This means that wealth within the white community has continued to surge while wealth within the Black community stagnates. Given this disparity, it is a must to help build wealth in communities of color to help level out the financial playing field.”
Through Paybby, people will have access to no-fee banking, a checking and savings account, FDIC insurance, early direct deposit, and the app’s “automated savings tools.” Signing up is as simple as downloading the Paybby app and authenticating your ID. Once Paybby sends you a debit card, you can start banking.
“Education has proven to not be the solution for this issue,” the video continued. “Ultimately, we have to work on an alternative solution for this wealth gap and that is where Paybby comes in. By banking with us, you pay far less, build wealth, and put an end to the financial unfairness that exists in the current banking system. It’s about time we stop being overcharged and underbanked.”