In the digital age, speed is a currency in itself. Technology is so embedded in our lives, that we almost don’t realize how much we depend on it for managing our money, transportation, relationships, education, and even our daily food needs. In particular, there have been huge strides by traditional financial institutions and fintechs to provide us more accessible ways to bank and manage our finances as tools to wellness in our lives. 

However, not everyone is included in the current financial system – in fact, according to the FDIC, approximately 24.6 million households in the US were unbanked or underbanked, representing a huge opportunity for financial brands to not just make real impacts in their community, but also their bottom line. Exclusion from traditional financial services forces many people to rely on financial products that may be predatory in nature. Moreover, 17% of Americans were financially vulnerable in 2023, an increase from 15% in 2022 according to the Financial Health Network Pulse Survey. This creates a large gap and opportunity for banking institutions and fintechs to step in with better products that can serve the needs of their community and expand their reach. The urgency to address the financial needs of these individuals is evident, and it highlights the need for banks and mission-driven fintechs to be more collaborative to help reach these underserved populations. 

Working with inclusive, mission-driven fintechs can help financial organizations reach new audiences, particularly communities of color that have been hard for banks to reach. According to the Financial Health Network, “Between 2022 and 2023, the share of Black and Latinx Americans who were Financially Vulnerable increased by 6 and 7 percentage points, respectively.” Reaching these markets differentiates the bank from competitors and positions the bank as being socially responsible, while generating new avenues for increasing revenue. 

Adopting or integrating fintechs within the organization can increase efficiencies for the employees which can help them spend more time connecting with customers. This efficiency saves costs for the organization while allowing employees to focus on customer relationships and reaching new audiences.

Accelerator programs can serve as a strategic avenue for collaboration with fast-growing fintech companies to foster positive change while driving business goals. Such accelerators can offer financial organizations a gateway to a cohort of innovative fintech companies that are building the future of financial technology. Fintech accelerator programs are designed to expedite the innovation process, allowing financial institutions to swiftly adapt to changing market dynamics.  

Accelerators can provide strategic investment opportunities for the financial organization to customize and integrate the product into its current platform and the potential to own a portion of a growing company or future acquisition. By investing in the startup, banks can diversify their client base, increase revenue, and make a real impact in their community.  Exposure to startups can also encourage a culture of intrapreneurship and agility within organizations. It encourages teams within the organization to float new ideas and work on building internal and external products that are disruptive. 

CAFE, the Center for Accelerating Financial Equity, is a non-profit creating an ecosystem to connect financial institutions, investors and entrepreneurs working to transform the financial system to be more inclusive. CAFE powers innovative, inclusive finance for better lives – focused on low- to moderate- (LMI) and underserved communities. CAFE’s flagship accelerator program focuses on fintechs that have products to advance financial health & wellness for underserved communities. 

One key advantage of partnering with CAFE is the streamlined access it provides to a pre-vetted cohort of startups. Instead of navigating the complexities and significant investment of establishing an internal accelerator or vetting startups individually, banks can leverage the accelerator’s participants. This ensures that the startups in the cohort have undergone a comprehensive program, equipping them with the skills and resources necessary for rapid scaling.  

Unlock the power of the most innovative impact-driven fintechs to reach your community in new ways, without the hassle of building an in-house accelerator. By joining forces with CAFE’s fintech accelerator and guiding emerging startups, your organization gains a front-row ticket to the future of impactful fintech breakthroughs. Financial institutions, investors, and other organizations can get involved by either sponsoring the program, investing directly in participating startups or serving as a mentor to the founder participants. 

CAFE helps bridge the gap between traditional banking and innovative, inclusive technologies to better serve underserved populations within your own community. Join us and discover how your financial institution can benefit.