Report Finds “Americans Are Lagging Farther In All Spaces Of Life” – How Fair Neobank Founder Khalid Parekh Aims To Address This Mismatch With Wealth Building Opportunities
Parekh explains how banking and financial technology can help underserved populations build wealth after new national NPR poll is released
Posted: October 19, 2021 at 12:48 p.m. EDT|Update: 6 hours ago
HOUSTON, October 19, 2021 / PRNewswire / – Khalid Parekh’s recent article in Fast Company magazine explains how his member-run Bank Fair provides solutions to underserved communities who typically pay excessive bank fees or are even completely excluded from traditional banking services . He also explains how mission-led neobanks like his are working to bring about real change for the better. With more than half of Americans without adequate emergency funds, improved banking solutions could be a game-changer for many.
Many are still struggling despite billions of dollars in financial assistance from federal and state governments, according to new research from NPR, the Robert Wood Foundation and the Harvard TH Chan School of Public Health.
“What we have here is a lot of people who are still one step away from financial drowning,” said Robert Blendon, professor emeritus of health policy and political analysis at Harvard Chan School.
Findings from the NPR study include:
- Thirty-eight percent of households across the country say they have faced serious financial problems in recent months.
- Among Latino, Black and Native American households, more than 50% had serious financial problems, while 29% of white households had them.
- This disparity is reflected in many other poll results, with minority families bearing a disproportionate share of the socio-economic impact of the pandemic.
In his Fast Company article, Parekh cites a Bankrate survey showing that black and Hispanic respondents pay twice as much bank fees as white respondents. He also explains how a 2019 Pew Research Center study shows that about 25% of Hispanics and black Americans can only access the internet at home with their smartphones. Only 12% of white Americans are in the same situation.
Parekh also lists other ways in which Fair Bank is designed to help underserved populations by offering:
- Transparent membership with no overdraft fees, no minimum balance and no additional fees in a network of over 55,000 ATMs
- A new feature of wealth building investing that can yield annual dividends of up to 4%
- International money transfers at no additional cost
- Debit cards for children included in subscription
According to NerdWallet, the best savings accounts currently only pay consumers between 0.2% and 0.6%. Equitable wealth building accounts that can earn up to 4% per annum in dividends are about ten times higher than that.
Membership is available on bankwithfair.com, and the Fair mobile app can be downloaded from the Apple App Store and the Google Play Store. Fair membership can be completed with a Social Security number or government issued ID, such as a passport or valid driver’s license. Memberships are $ 69 a year or $ 6.99 a month. Fair also offers a lifetime membership for a one-time fee of $ 99 up to December 31, 2021.
ABOUT THE FAIR
Fair is an ethical and socially responsible neobank and digital financial services platform. Fair offers halal-certified and membership-based services to eliminate surprise fees that can prevent financial freedom and savings opportunities. Dedicated to values that put people above profit, Socially Responsible Investing (SRI), Environmental, Social and Corporate Governance (ESG) investing is fair and is halal certified by AAOIFI. Fair donates 2.5% of its profits to global refugee causes and racial economic empowerment initiatives. Fair banking services are provided by Coastal Community Bank, member of the FDIC.
Investment and retirement services will be provided by Fair Invest, LLC.
The general conditions apply and can be consulted on bankwithfair.com. Connect with @bankwithfair on Facebook, Twitter, Instagram and LinkedIn.
Investment and loan products are provided by Fair Invest, LLC, an investment advisory firm registered with the Securities and Exchange Commission. Custody and brokerage services are provided by Apex Clearing Corporation, a member of the New York Stock Exchange (https://www.nyse.com/), FINRA (https://www.finra.org/) and SIPC (http://www.sipc.org/).
Please note that these products are:
Protected by SIPC insurance for Fair Invest, LLC accounts on the APEX platform, not insured by FDIC insurance. SIPC insurance covers customer claims up to $ 500,000, with a maximum of $ 250,000 for cash claims. For more details see www.sipc.org
Not a deposit or other obligation of, or guaranteed by Coastal Community Bank, FDIC member, or any banking affiliate
Subject to risks, including possible loss of invested capital. This risk is assumed by Fair Invest, LLC, so the member’s invested capital will not be affected by such losses. For more details see https://bankwithfair.com/terms-conditions/
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