Immigrants and Money in 2023

Stew Langille
Posted by Stew Langille | Oct 11, 2022

Embedded finance is democratizing financial opportunities

Organizations, nonprofits, and businesses that serve the immigrant or financially challenged segment of the population understand the myriad challenges they face. Immigrants in particular struggle to establish themselves, facing barriers in the financial system due to low or nonexistent credit scores. Even immigrants with solid credit in their home countries appear to have no credit to financial institutions in their new country of residence. This makes everything from renting a house, setting up a bank account, or securing a vehicle next to impossible.

Services for immigrants vary from state to state, and they tend to focus on the basic necessities such as food and clothing. As of 2019, 32 percent and 22 percent of Black and Hispanic Americans were reported as underbanked, respectively, according to Federal Reserve data. A significant amount of immigrants do not use banks, in fact, bank usage is five times lower among immigrant households. Functioning outside of the traditional financial system makes everything more expensive, and purchases must be made in cash. Consider how many digital financial transactions you make each day, and then imagine if you had to do them all in cash. Living outside of traditional banking also prohibits immigrants from building credit, making any loan they might be able to secure much more expensive in terms of interest rates.

Using tech to overcome financial challenges

Just as blockchain streamlined banking and reduced risk, embedded finance is transforming how the underbanked immigrant population uses financial tools. Embedded finance employed by businesses and nonprofits who serve immigrants opens up the world of digital banking, including embedded banking, embedded credit cards, payment methods, and other financial tools to the immigrant and underbanked population.

Productfy is one of the new startups leading this mission. Our Latinum product enables us to partner with organizations and companies by bringing the technical, banking, and compliance expertise to offer much-needed financial products and services. Our partners provide the insights and deep customer relationships and together, we increase customer, community engagement and value. 

Partnering with organizations who serve immigrants and the financially underserved, Productfy takes care of the application, bank approval process, and financial operations. We enable non-ban organizations to launch credit cards that are white labeled with web and mobile responsive apps. Using our technology, our partners can offer same day ACH transfers, instant account linking with micro-deposit verification processes, real time book transfers, and the ability to move money into and out of a debit card. Users can send and receive wire transfers, and organizations using Productfy can set their client base up with credit and debit cards. With our tools you can launch a pre-approved, white label card program in weeks.

The popular refrain “cash is dead” was once an impediment for immigrants and the underbanked, but Productfy enables organizations who serve immigrant populations to not only alleviate the need for cash, but to offer far more varied financial services to help them succeed and not simply survive.

Ready to bring a digital banking program to your customers and community?