With 2 billion adults worldwide that are still underbanked or unbanked it is no surprise that many startups are creating solutions that are geared towards servicing this audience.
While traditional banks may be failing to see the benefit of working towards creating a more inclusive system, blockchain startups like Latino-owned FinTech company Uulala see the huge untapped potential of this multi-trillion dollar market.
Regardless of their banking status, Uulala appeals to savvy individuals who want to save money when completing financial transactions. According to the World Bank’s 2017 Remittance Prices Worldwide report, “Banks remain the most expensive type of service provider,” on average costing over 10% of the remittance amount to make the transfer. Nearly 90% of international transfers still take place through traditional, agent-based channels, at an average cost of 7.5% of the transfer amount, and people are seeking cheaper, more convenient options. Uulala’s transfer options will generally cost closer to 2%.
With the proliferation not just of mobile phone networks, but also of smartphone technology throughout developing world, online options are poised to take a much larger proportion of the global movement of money.
While many startups in this sector are focused on reducing the cost of remittances many have failed to provide a full-service financial solution which includes the ability to build credit. Through their partnerships, with traditional financial institutions, Uulala will allow customers to benefit from their credit score outside of the app removing a significant obstacle this demographic currently faces.
With a target audience of over 210 million unbanked adults living in Latin America and 23 million living in the U.S. combined with an easy to use financial app that helps users build a global credit score in addition to sending and receiving remittances, paying their bills, shopping online and obtaining microcredit offers for a fraction of the current cost, it is no surprise that early investors have lined up to support Uulala in their mission.
“The ability for the Uulala platform to connect the unbanked to the formal economy, track their creditworthiness through our microcredit ledger and provide them relevant microcredit offers allow us to decentralize the financial services industry” stated CEO Oscar Garcia.
Uulala has already surpassed the project softcap, their banking core platform is fully developed, blockchain integration is wrapping up and mobile app will launch soon. The organization has MOUs and LOIs with companies around the globe to leverage their batch payout functionality as well as merchants to offer microcredit offers through the Uulala ecosystem.
Uulala is a minority-owned US-based corporation with the majority of shareholders being first or second generation Latin Americans. Uulala is a mission-driven organization to facilitate and accelerate the financial inclusion of the underbanked and unbanked population across the Americas. Uulala empowers the underbanked communities of the world through the Uulala platform by providing financial tools for them to build credit, send money, participate in ecommerce and elevate out of a cash-only environment. Uulala will drive change and betterment of Latino culture through the massive social impact their banking platform and mobile app can have on a culture that lacks trust in traditional banking systems. Uulala platform not only provides ways for Latinos to participate in secure financial transactions, build credit and offer remittance services but also gain access to entertainment and shopping services that were once out of reach because of their banking status.