Bodegas are becoming the new frontier for underbanked communities, as millions of Americans are living without access to traditional banking services. In 2023, 13% of Americans were defined as underbanked, which means they had some type of bank account but regularly used alternative financial services. This phenomenon disproportionately affects young people, with over half of the underbanked being millennials.
Being unbanked or underbanked presents major challenges for individuals, limiting their ability to securely store and manage their money, access credit, and receive payments efficiently. High fees and interest rates associated with alternative financial services make it difficult for these individuals to save or invest in their future. Consequently, unbanked or underbanked individuals often turn to their communities for support in lieu of traditional banking institutions.
OLB Group (NASDAQ: OLB) is leveraging the power of bodegas and neighborhood convenience stores to extend support to unbanked and underserved communities. The company’s digital commerce platform, Point of Banking (POB), is catering to the needs of over 10,200 merchants across the country, specializing in serving the unique requirements of the underbanked population.
POB aims to bridge the gap between traditional cash-only operations and the digital financial landscape, empowering local businesses to provide diverse financial services to their customers. The company is working on future initiatives like cash withdrawal, money transfer services, and even micro-loans, further emphasizing its commitment to fostering financial inclusion and accessibility for underserved populations.
In June 2023, OLB acquired a controlling interest in black011.com, which includes Black Wireless and Mango Mobile. This strategic acquisition enabled the company to offer a Point of Sales (POS) system to customers so they can purchase products and seamlessly reload mobile phone minutes without needing a bank account or credit card. By expanding services to more underbanked communities and small businesses, the company can address a critical market need and contribute to financial inclusion.
OLB Group’s collaboration with bodegas around the country has the potential to provide opportunities that were previously out of reach for many and can also provide a huge new market for additional sources of revenue for OLB Group.
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