Financial inclusion is critical to realizing economic growth in today’s global market. In addition, financial inclusion is vital to helping countries alleviate poverty, boost employment and achieve social and economic equity.
Worldwide, 1.7 billion people have no access to banking services, according to the most recent figures from the World Bank. And in 2020, 13% of adults in the United States were underbanked, while 5% were fully unbanked, according to a report by the Federal Reserve. “Unbanked and underbanked rates were higher among adults with lower income, adults with less education, and Black and Hispanic adults,” the report noted.
Local banks and credit unions have always prided themselves on serving their communities. As such, these financial institutions (FIs) must think about building programs that promote financial inclusion and address social disparity and inequality.
Bringing Equity to Lending
MeridianLink’s mission is to democratize financial services technology and data to facilitate better service for all customers and members of small and midsize financial institutions. By offering more accessible loan options, banks and credit unions can help combat the systemic problems that come from not having access to banking services. And technology enables these programs to be easily distributed among a larger portion of the population.
Fintechs see mutually beneficial opportunities in underbanked communities because smartphones are widely used by individuals in these communities to perform banking transactions. Digital banking via smartphone provides a more seamless way for many to do their banking as online transactions do not require people to live near a physical bank location or travel outside their communities to find one.
To reach these consumers, community banks and credit unions must match such offerings, possibly through partnering with a company, such as MeridianLink, that is constantly innovating and knows how to provide the type of service small and mid-size financial institutions need to compete and grow.
Our platform helps financial institutions bring equity and access to lending, placing power in consumers’ hands through our lending and data verification platforms made available through their trusted financial institutions.
Helping Financial Institutions Reach All Americans
At MeridianLink, we connect banks and credit unions to better technology, better service, better people, and better solutions to streamline experiences, helping customers and members live better lives.
Our purpose is to enable banks and credit unions to reach more consumers in their communities. This goal is extremely relevant today as society pushes to expand access to credit for those unable to access banking services so that all Americans can achieve their personal financial goals.
Our innovations have shaped the industry and democratized technology so all community banks and credit unions can compete in today’s market and deliver superior customer service. And as we evolve, we continue to focus on how technology encourages connections, spurs growth, and ensures greater customer satisfaction.
In addition, to help lenders deal with the changing landscape due to high interest rates, we offer marketing automation tools that help FIs forge deeper connections with customers through improved offers.
As we work hard to transform financial services technology, we are excited to see what the future holds. Until then, we will continue to deliver better technology, better service, better people, and better solutions to create a more equitable digital financial landscape.