Economic Inclusion Solutions for Traditional Lenders

Expand access to financial services for unbanked and underbanked households using Vergent LMS.
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The Current State of Finance

Many people in the US and the communities served by us lack access to the basic financial services that others take for granted. Bank accounts and debit cards are out of reach to many due to their location, mobility, and financial situation.

According to the Federal Reserve, 13% of US adults are underbanked, meaning that they have a bank account but instead of using it, they rely on non-depository lending services. 6% are unbanked, meaning that they have no bank account at all and completely rely on those services. Factors such as income, education, and ethnicity are strongly correlated with access to banking.

Unbanked and underbanked people face many financial difficulties, including lack of access to credit or lending services and an inability to build savings. However, fintech can make a positive impact in expanding financial services to these groups—which is what financial inclusion is all about.

Financial Inclusion

Create Banking Relationships

Establish an on-ramp to the U.S. financial system, setting the stage for future financial success.

Build Household Financial Stability

Help households save and increase access to consumer credit to better manage ongoing expenses.

Achieve a Secure Financial Future

Build household wealth through investments that can foster savings and accumulate value over time.

Build Strong Communities

Offer bank lending, investments, and services for underserved communities.

What is Financial Inclusion?

Financial inclusion means that all individuals and businesses in a society can access the financial services they need at an affordable price. Services like lending and other crucial financial tools are within reach of everyone—including low income or marginalized communities.

With large swaths of the population of unbanked and underbanked people in the US, we are clearly not living in a financially inclusive society. However, We can help advance the situation in the communities it serves by utilizing Vergent’s white label lending platform. By making lending services available to people for whom traditional financial services have been out of reach, your institution would add to over 30 million individual borrowers already served by Vergent’s loan management system, providing communities even more power to achieve financial independence and well-being.

Why it’s Important

Financial inclusion is important because it brings affordable and convenient access to the basic financial services that have historically been less accessible for low-income and marginalized groups. When access to financial services—which often comes through fintech—is expanded to these groups, financial empowerment increases. Globally, the rise of fintech has coincided with increased financial inclusion. As of 2021, 76% of adults worldwide had a bank or mobile account, up from just 51% in 2011. That accounts for billions more people with bank accounts over the course of a decade, mostly in developing countries. This increase is tied to fintech’s contribution to financial access and is fostering a more financially inclusive world.

Individual and Economic Growth

The benefits aren’t just for the individuals who gain access to financial services they need: financial inclusion also contributes to economic growth. When more people can use financial services, they are better positioned to contribute to the economy to expand growth for all.

The FDIC’s Economic Inclusion Strategic Plan

In the US, the FDIC’s Economic Inclusion Strategic Plan aims to bring access to affordable and sustainable financial products and services from insured depository institutions to millions of unbanked and underbanked Americans. The FDIC advances this plan through work with collaborative networks, community promotion, education, innovation, research, and policy.

“I have long believed that the essential role of the lending industry is in bringing people together, enabling individuals to reach for their dreams, and for being a source of strength in difficult times. I take great pride in knowing that Vergent’s efforts create financial opportunities for not only individual borrowers of all stripes but also financial inclusion for underserved communities.”

Scott PutnamCEO, Vergent LMS

Largest Areas of Impact | Key Benefits

  • Expanding access to traditional banking services
  • Expanding access to credit
  • Greater financial access through fintech apps
  • Economic growth and social impact

Our Lending Platform | Key Features

  • Streamlined applications through our brandable customer-facing application portal
  • QR code (link to app portal) can be placed on bank-designed marketing materials
  • Configurable decision engine (“DE”) implementing multiple decisioning waterfalls with traditional and non-traditional data sources and capable of returning risk-based pricing with maximum loan amount, and validation of elements for review by underwriters (staffed by Vergent partners or bank resources)
  • Configurable workflows driven by automated DE
  • Funding options include ACH, RCC, instant debit, prepaid card, check, and cash at bank location
  • Integrated loan documents with included eSign functionality
  • Recurring payments at time of origination driving repayment (ACH, RCC, instant debit, prepaid card)
  • Brandable mobile app for customer-driven account management functions including payments, review of documents, location finder, and more
  • Call-center servicing functionality (staffed by Vergent partners or bank resources)
  • Portfolio reporting in real-time
Financial Inclusion

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