Black, Latino communities and Gen Z more likely to be underserved by the mainstream U.S. financial system.
HOUSTON, Sept. 5, 2023 /PRNewswire-PRWeb/ -- Aequalend, a new minority-owned financial technology company seeking to revolutionize the financial services industry by addressing financial exclusion in the U.S., announced its official launch today. The company aims to empower underserved groups, including unbanked and underbanked minority communities, through robust community engagement, financial literacy education, and innovative, personalized and affordable financial solutions that challenge the status quo of traditional financial institutions.
The term "unbanked" refers to households that lack checking or savings accounts at traditional banking institutions, while "underbanked" households may have a bank account but still resort to nonbank financial products and services, such as check cashing services or payday lenders. According to the Federal Deposit Insurance Corporation's 2021 National Survey of Unbanked and Underbanked Households, an estimated 4.5% of U.S. households (representing 5.9 million households) were unbanked and 14.1% of households (18.7 million households) were underbanked. Black and Latino communities were more than twice as likely to be in these categories – a challenge that perpetuates systemic inequalities, stifles economic progress and deprives a significant segment of the population of the resources necessary to build a secure and prosperous future and, ultimately, generational wealth.
"We believe financial inclusion is not a privilege but a fundamental right. And we know access to financial literacy is critical to economic mobility for the underserved. We want to dismantle barriers to resources that can transform lives," said Aequalend CEO and Co-Founder Marc Hernandez. "By leveraging cutting-edge technology, embracing diversity, facilitating knowledge and maintaining an unwavering commitment to our mission, Aequalend is poised to redefine financial inclusion in the United States."
The TIAA Institute-GFLEC Personal Finance Index, an annual study that assesses financial literacy among U.S. adults, reports significantly lower financial literacy rates among Hispanic and Black Americans, who correctly answered 6% and 7% of P-Fin Index questions, respectively. White and Asian Americans correctly answered 24% and 23% of the questions, respectively. Additionally, financial literacy rates are declining with each generation, which only compounds the financial challenges Gen Z faces.
"As minorities ourselves, we've witnessed the struggles that result from the inclusion gap firsthand – both amongst our families and our customers," said Aequalend President and Co-Founder Sandra Estrella. "Not only is there a lack of affordable, accessible and culturally competent financial products to meet these consumers' needs, they're already behind from birth and very rarely catch up because they lack financial literacy. And a lack of financial literacy in the U.S. isn't unique to minorities; it's a major issue that's also currently impacting Gen Z across all races and ethnicities. We want to make a difference."
KEY HIGHLIGHTS:
- Tailored financial solutions: Recognizing that one size doesn't fit all, Aequalend offers residential mortgages, personal loans and credit cards, small business loans, financial education and personalized financial management tools designed to meet the unique needs and challenges of underserved communities.
- Financial literacy: Aequalend believes in empowering its customers. Beyond just providing financial services, the company prioritizes financial literacy ensuring its customers understand how to use its products and possess the knowledge to make sound financial decisions, thereby fostering financial independence.
- Culturally competent services: Aequalend is committed to understanding and respecting the diverse cultural nuances of its customers, making it truly relatable.
- Tech-driven accessibility: Using innovative technology, like artificial intelligence and blockchain, to democratize access to wealth creation, Aequalend delivers a seamless, secure and transparent user experience that promotes trust and long-term relationships with its customers.
The nation is witnessing the intersection of finance and technology, as well as a surge in minority entrepreneurs, families and individuals looking to shape their financial destinies. These factors are transforming the way people manage their money, access credit, invest and make payments – democratizing access to previously exclusive financial services. With a focus on financial inclusion, innovation and community empowerment, as well as a commitment to transparency, Aequalend is well-positioned to make a lasting difference in the lives of the individuals and communities it supports.
Hernandez and Estrella have a combined 40 years of financial services experience with a focus on helping minorities purchase homes. Aequalend's team brings vast experience in finance, technology and community development, as well as a profound grasp of compliance requirements, to the table. The company currently serves residents in Texas, Georgia, Colorado, Florida and Washington, D.C., and plans to expand its operations across the U.S. in the coming months.
As it grows its national presence, Aequalend is also looking to grow its team with associates who share its vision for a more equitable financial future in the U.S. and an undivided approach to finance.
About Aequalend
Aequalend (pronounced eh-KWUH-lend) is a minority-owned fintech company seeking to revolutionize the financial services industry by addressing financial exclusion in the U.S. With a focus on innovative technology, affordable financial solutions and financial literacy education, the company's mission is to help close the financial wealth gap and build generational wealth within underserved populations across America. Aequalend is headquartered in Houston. To learn more, visit www.aequalend.com
Media Contact
Jasmine Hernandez, Aequalend, 1 7735172105, [email protected], www.aequalend.com
SOURCE Aequalend
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