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Bodegas Are The New Frontier For Underbanked Communities OLB Group Leading The Charge

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By Faith Ashmore, Benzinga

Millions of Americans are living on the periphery of society. More than 1 in 10 Americans have no checking or savings account or, in other words, are unbanked. In 2023, 13% of Americans were defined as underbanked, meaning that they had some type of bank account but regularly used alternative financial services. Unsurprisingly, this phenomenon is affecting young people disproportionately with over half of the underbanked being millennials. For a generation that is constantly in the headlines for not being able to afford houses, struggling in the job market and generally fighting to make ends meet, this is a huge area of concern and an opportunity for some companies.

Being unbanked or underbanked presents major challenges for individuals, as it limits their ability to securely store and manage their money, access credit and receive payments efficiently. Without a bank account, individuals often have to rely on alternative financial services with high fees and interest rates, making it difficult to save or invest in their future. Unbanked or underbanked individuals subsequently turn to their communities for support in lieu of traditional banking institutions. Bodegas and neighborhood convenience stores have historically been on the frontlines of these struggles because of their access to these communities and the ability of small businesses to provide alternative support.

Serving Unbanked Communities

OLB Group (NASDAQ: OLB) is leveraging local communities and bodegas to extend support to unbanked and underserved communities. With a digital commerce platform known as Point of Banking (POB), the company is catering to the needs of over 10,200 merchants across the country. The POB platform is gaining recognition as a potential disruptor in the fintech sector by specializing in serving the unique requirements of the underbanked population.

At the heart of POB's mission is the commitment to transforming financial services for bodegas and other small-scale businesses, particularly benefiting the unbanked and underbanked communities. By offering a comprehensive array of products and services, POB aims to bridge the gap between traditional cash-only operations and the digital financial landscape, empowering local businesses to provide diverse financial services to their customers. The company already has in place a working relationship with approximately 2,000 bodegas throughout the country and that network continues to expand.

With these bodegas, POB facilitates the issuance of physical and digital prepaid cards and enables cash-loading services, online product purchases, bill payments and EBT services. The company is currently working on future initiatives like cash withdrawal, money transfer services and even micro-loans. This strategic focus on local partnerships and innovative financial solutions underscores the companys dedication to fostering financial inclusion and accessibility for underserved populations while increasing company revenues and profitability.

The company has also acquired other companies to help advance its mission. In June 2023, OLB acquired a controlling interest in black011.com, which encompasses Black Wireless and Mango Mobile. This strategic acquisition enabled the company to offer a Point of Sales (POS) system to customers so they can purchase products and seamlessly reload mobile phone minutes without needing a bank account or credit card.

By expanding services to more underbanked communities and small businesses, the company can address a critical market need and contribute to financial inclusion. OLB is also working on integrating new technologies like blockchain and AI in order to democratize banking for millions more Americans. OLBs collaboration with bodegas around the country could provide opportunities that have been previously out of reach for many and, concurrently, provide a huge new market for additional sources of revenue for OLB Group.

Featured photo by Robinson Greig on Unsplash

Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

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Benzinga

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View source version on newsdirect.com: https://newsdirect.com/news/bodegas-are-the-new-frontier-for-underbanked-communities-olb-group-leading-the-charge-490892524

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