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Coinbase and Upstart Increase Sales by 11 Times Fintech Revenue Success

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Coinbase employees will vaporize champagne during the company’s initial public offering (IPO) on Wednesday, April 14, 2021, outside the Nasdaq MarketSite in New York, United States.

Michael Neagle | Bloomberg | Getty Images

If you have questions about FinTech’s growth, check out the results reports of the two initial public offerings on Tuesday night.

Cryptocurrency exchange Coinbase said its revenue grew 12-fold year-over-year to $ 2.23 billion. Online lender Upstart Holdings says revenue increased 11-fold to $ 194 million a year ago.

These figures are staggering.

To double a year for a company of this size, you have to be in the right place with the right team at the right time, and often need to inject large amounts of capital to acquire new customers. The most successful tech companies in history have never seen a four-digit growth rate when open to the public.

Amazon’s strongest growth was around 300% in 1998, shortly after the IPO. Google’s revenue doubled in the first quarters of the market in 2004 and 2005 and then declined. Facebook never went into triple digits after it was posted.

Even during the 2020 pandemic, Zoom’s growth rate was 369% and Peloton’s growth rate was 232%, the highest when new users flocked to digital work and exercise products.

Unlike what happens in finance, Coinbase and Upstart represent some of the biggest changes happening around the world in public market proxies.

Big banks and investment firms are losing control over consumers. The loans are available from a number of easy to use online services. Emerging banks and credit card companies are killing the fees. The same goes for app-based intermediaries and trading platforms. On the public and private markets, the valuations are astronomical.

Launched in 2015 as a payment service for small businesses, Square is currently worth $ 125 billion and has a portfolio of business, consumer and money transfer services.

Square said last week it was spending $ 29 billion on Afterpay, an Australian retail point-of-loan lending provider. This is one of the biggest tech deals to date, more than Microsoft, Google, Facebook, Amazon, Apple, Oracle, Cisco or Intel have ever contracted.

Eric Jackson, technology investor and president of EMJ Capital, said:

Jackson names Square, Upstart (which he owns), Coinbase, as well as Plaid, where back-end software links bank accounts and fintech apps, and online lender SoFi among the fastest growing companies Did.

“Of course I have prejudices and I think Upstart is the best,” he said.

He made a lot of money with it. Upstart went public in December for $ 20 a share, and Jackson said he had owned it since its IPO. After a 24% increase in after-hours trading on Tuesday, the stock price is currently around $ 160 and the company is worth more than $ 12 billion.

Founded in 2012 by former Google executive David Girouard, Upstart uses machine learning to take out consumer loans and bring this technology to its banking partners. Banking partners can better target their customers. Twenty-five banks and credit unions are currently using the technology, Girouard said in a statement, “the pipeline in the second half of 2021 has a growing list of lenders.”

Online loan boom

According to Upstart, second quarter revenue was up 60% from the previous quarter, with more than $ 100,000 in loans and $ 1 billion in platform origin in the first month of June.

In 2020, the country is in the early stages of a pandemic and much of its economy is closed, so it is not entirely fair to compare the second quarter results with the same period last year. Upstart said in its prospectus that many banking partners have ceased their origins, resulting in lower revenues.

CFO Sanjay Datta reminded investors by phone.

“We’re not going to mention the year-over-year growth in profit and loss this quarter, as the impact of last year’s pandemic combined and everything is well over 1000%,” Datta said.

Yet even with Upstart’s best quarters since last year, revenues have grown by over 200%. Net income was $ 36.3 million, compared to $ 10.1 million in the previous quarter, which was the most profitable quarter.

Coinbase’s story is about the historic growth of crypto investing, even as prices become more volatile.

Second-quarter trading volume grew from $ 28 billion the year before to $ 462 billion. The platform’s assets ranged from $ 26 billion to $ 180 billion. Net income was $ 1.6 billion, an increase of almost 4,900% from the previous year.

“We have seen incredible growth in almost every aspect of users added to the platform, assets on the platform, revenue, etc.,” Coinbase CEO Brian Armstrong said in a statement.

Coinbase went public in April when it was listed directly. With a fully diluted market cap of around $ 77 billion, its valuation has increased almost tenfold since 2018.

Cryptography spreads wealth

Crypto trading is also a key driver for Robin Hood, which launched in July, and is now worth over $ 45 billion, up from around $ 12 billion a year ago. Robin Hood has yet to release its results as a state-owned company, but the prospectus says first-quarter profits rose 309%.

Fintech companies are also very popular in the private market. Eight of the 20 top-rated private tech companies offer financial services, according to research and analytics firm CB Insights.

Payments company Stripe was recently valued at $ 95 billion. Sweden’s Klarna, a competitor to Afterpay and Affirm on point-of-sale loans, is worth $ 45.6 billion. Revolut, a UK money transfer and investment app, is worth $ 33 billion and Brazilian digital banking company Nubank is worth $ 30 billion.

Further down the list, online banking provider Chime ultimately raised a valuation of $ 14.5 billion, and Visa planned to buy Plaid before the deal closes, worth $ 13.4 billion. dollars.

There may be bubbles. And the hype in some areas is certainly way beyond reality.

But as the financial results show, consumer expectations are changing as fast as the flow of money. There’s a reason JPMorgan Chase CEO Jamie Dimon warned shareholders in an annual letter in April that “banks are playing an increasingly smaller role in the financial system.”

to see: Buy now-Pay later-Businesses can be at risk


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Who we are: Kyle Lee

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“As a deckhand, all I had to worry about was waking up, working hard, catching fish. That’s about it.”

That’s what Kyle Lee, who spent a gillnet season with a college buddy on the Copper River Flats in Alaska, says because it sounded so much fun. He fished a few 24 hour openers and said to himself, “This is amazing! Can you do this for a living? It was such a beautiful day. I had so much fun catching fish.

After graduating from college, he weighed his options to come back next season.

“I can either take this job or fish in one of the most beautiful places on this planet,” Lee said. “I decided to look into it and get into commercial fishing. I thought I could always find a corporate job somewhere, but commercial fishing was a once in a lifetime opportunity.

He found a bundle of gillnet, got a loan from the State of Alaska, and bought. Looking back, he probably should have teamed up a little longer, but he knew what he wanted – to be a commercial fisherman. “The perspective of a deckhand is completely different from that of a captain. “

He started direct marketing his first season. These days, Lee is focusing on his direct-to-consumer business, Alaskan Salmon (aksalmonco.com). When visiting Lower 48, Lee said, “I would run to buy salmon and I was like, ‘What is this? It is nothing like the Alaskan salmon we catch. Yet it was labeled Alaskan salmon.

Lee’s parents own two restaurants in Anchorage, Chop Sticks and Thai Garden. So he grew up in the food industry, knowing the importance of good quality ingredients while learning the ins and outs of being a small business owner from his parents, who immigrated to the United States from Taiwan. . From the moment he bought, Lee started reaching out to restaurants for direct marketing, and has been doing so ever since.

Although recent seasons on the Copper River Plains have been meager, Lee is optimistic about the fishing, noting that the 2021 season is going better than last year.

“If I weren’t an optimist, I don’t think I would be a fisherman. Lee also finds that since covid more and more people are trying seafood at home after so many restaurants have closed. “If you had the same business before covid started,” he adds, “you’re not doing it well. “


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Fourth Stimulus Checks Live Updates: Can This Happen In August? Child tax credit August dates, tax declaration, opt-out …

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Child Tax Credit: Changing Americans’ Lives

“Months after the lockdown, Maggie Wiggin noticed her 7-year-old son had become depressed. “The lockdown was a nightmare, I think, for a lot of children with special needs. Just an incredibly difficult time ”, she said, explaining that her son was autistic. “And then he started to get sick.”

“Her face started to swell, a sign of edema; his kidneys were not working. He spent time in the hospital, took what Wiggin describes as “nasty medicine” and asked his parents if he was okay. The trauma accumulated over time, and Wiggin, desperate to help, was elated when she discovered an effective therapy for her son called Floortime, for which a practitioner came to her home to work directly with her son.

There was just one problem: the insurance wouldn’t cover it. The family, which includes her 4-year-old daughter, has started taking on credit card debt. They believed that if they had a choice “between being perpetually miserable and being in debt with a credit card, it was an easy choice: pay,” she said.

“Then July 15 arrived and, with it, the relief: Wiggin received $ 550 this Thursday morning, thanks to the expanded child tax credit … ‘

Sarah Jones brings you some real life examples of the impact of child tax credit payments.


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People with certain DWP benefits or HMRC tax credits could get a bonus

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More than 5.5 million people across the UK are currently claiming Universal Credit and around five million more households are receiving additional financial support through Work Tax Credits.

Restrictions have now been lifted in Scotland, which should help the economy get back on its feet again. However, 1.9 million people are still on leave or facing job uncertainty and may have to apply for financial assistance through the Department of Work and Pensions (DWP) or HM Revenue and Customs. (HMRC) to help them meet the daily cost of living.

However, even if you count on the state to help you weather the pandemic this summer, there is a way to increase your savings by 50%, which could come in handy when the economic tide turns – and it doesn’t. is not available to everyone.

And this particular savings program was mentioned a few times by money saving expert Martin Lewis during the last round of his Money Show Live on ITV.

The Help to Save account is a program to which thousands of people with low income or receiving certain benefits could be eligible.

This is a state-run program that allows people who qualify for work tax credits or receive universal credit to get a bonus of 50 pence for every £ 1 saved over a period up to four years.

It is also possible to withdraw money from the account, but there is a catch: the bonus payout is based on the highest amount you have invested.

Even if you are not able to put money aside to save at the moment, open an account anyway, while you are entitled to it, because you do not have to put any money in it.

How the savings assistance program works

The program allows certain people who are eligible for the Work Tax Credit or on the Universal Credit to get a bonus of 50 pence for every £ 1 saved over four years.

Help to Save is backed by the UK government, so any savings made under the program are secured.

How Payments Work

You can save between £ 1 and £ 50 per calendar month – you don’t have to pay every month.

Payments can be made by debit card, standing order or wire transfer.

You can pay as many times as you want, but the maximum you can pay for each calendar month is £ 50.

You can only withdraw money from your Help to Save account to your bank account.

How Bonuses Work

You get bonuses at the end of the second and fourth years – they’re based on how much you’ve saved.

What happens after four years?

Your Help to Save account will close four years after opening. You will not be able to reopen it or open another Help to Save account.

You can close your account at any time. If you close your account early, you will miss your next bonus and you will not be able to open another one.

Eligibility

You can open a Help to Save account if you are:

  • Reception Labor Tax Credit

  • Ability to Labor Tax Credit and receive Child tax credit

  • Affirming Universal Credit and your household earned £ 604.56 or more from paid work during your last monthly assessment period

  • Receive payments as a couple. You and your partner can request your own Help to Save accounts – you must apply separately

You must also live in the UK.

Will this affect my benefit payments?

You can continue to receive tax credits or a universal credit while saving with Help to Save.

What happens if I stop claiming benefits?

You can continue to use your Help to Save account.

For more information and to set up your Help to Save account, visit the GOV.UK website here.

Get the latest news on savings and benefits straight to your inbox. Sign up for our weekly Money newsletterhere.


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Binance CEO resigns citing ‘differences’

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Brian Brooks, the head of U.S. operations for the Binance cryptocurrency exchange, has stepped down after just three months in the post, he tweeted.

Brooks brought a British pound resume to the post, having served as the Federal Government’s Acting Comptroller of Currency under President Donald Trump and Chief Legal Officer of Coinbase. He is leaving Binance because he faces many regulatory issues in other parts of the world.

This sudden departure comes as Binance’s main global exchange, Binance.com has come under intense scrutiny this year from regulators in the UK, Germany, Japan and Hong Kong, among other things, because of concerns about lax consumer protection and anti-money laundering practices. ”a Financial Times article on Brooks’ exit statements.

According to the newspaper, Binance’s troubles have led some longtime financial players to stop doing business with the company.

In the introduction of an interview with Forbes published last week, the magazine stated that Binance is the world’s largest cryptocurrency exchange.

In the Forbes interview, Brooks said Binance US is emerging from the global conglomerate.

“As we work on our first round of venture capital funding, we will have additional members of the US board of directors who will not have ties to Binance.com,” he said. “The point is, you might think of us as a franchise; we have licenses to use the brand, we have licensed certain technologies, we are also innovating a technology of our own. And that’s the link. “

A week ago, Binance founder Changpeng Zhao announced he was stepping down as head of the Cayman Islands-based company.

Read more: Bitcoin Daily: AS Roma, Zytara Labs team on NFT football; Binance founder to quit

Earlier in July, Italian regulators banned Binance from doing business there, but company officials told Reuters they were not operating there in the first place.

See also: Bitcoin Daily: Binance excluded from Italy; PayPal increases cryptocurrency limits

And in early July, the Wall Street Journal reported, Binance’s online platform froze for about an hour, prompting some users to request refunds for lost money.

Read more: Binance users want money after problem after crypto crash

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PYMNTS DATA: 100 HEALTH EXECUTORS DECLARE USE OF AI TO FIGHT FRAUD, WASTE AND ABUSE

About: Healthcare companies lose 12% of their annual revenue to fraud, waste and abuse (FWA), but few are using artificial intelligence (AI) to solve these problems due to cost concerns. In AI In Focus: Targeting Fraud, Waste and Abuse In Healthcare, PYMNTS surveyed 100 healthcare executives to find out how AI could actually help businesses save money by limiting costly misrepresentation and false positives.



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Credit managers rush to raise ever larger funds

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Robert Givone, Miami-based partner and co-head of opportunistic credit at Apollo Global Management Inc., said credit funds are growing to meet “the insatiable investor demand for safe, private and non-valued credit investments. the market value ”.

“With fixed income producing less than 2% globally, more and more investors are allocating capital to private credit where one can invest in low LTV (loan-to-value) loans and still generate a significant excess spread by accepting a certain illiquidity rather than increasing the curve risk in the public markets, ”said Mr. Givone.

Arès management Corp. revealed that their new fundraising will be at least 20% larger than previous funds in the series, with significantly more than that. Ares raised $ 5.1 billion in the first close of its second U.S. senior lending fund, Ares Senior Direct Lending Fund II, which already exceeds the fund’s fundraising target and is 70% larger than the size of its predecessor, Michael Arougheti, Ares CEO and chairman, said during the company’s earnings call on July 29. With the expected leverage, the fund currently has purchasing power of around $ 8.1 billion and continues to raise capital, Arougheti said.

Ares’ second pan-Asian secured loan fund, SSG Secured Lending Opportunities III, which closed with more than $ 1.6 billion, is double the size of the previous fund.

Ares executives expect fundraising in 2021 to exceed 2020, he said. The company is benefiting from “secular strong tailwinds” in investor demand for “private and sustainable return,” Arougheti said.

When it comes to credit, scale matters, Kewsong Lee, CEO of The Carlyle Group Inc., said during the company’s July 29 earnings call.

“Funds are being raised faster than ever, and the accelerating impact of disruptive technologies and changes due to the pandemic is fueling increased demand for private capital in all sectors and regions,” Lee said. Carlyle’s 3-year-old opportunistic credit business had nearly $ 6 billion in assets under management as of June 30, up 22% year-on-year, “with further growth to come.” he declared.

Carlyle is currently raising its second opportunistic credit fund, Carlyle Credit Opportunities Fund II, with a fundraising target of $ 3.5 billion, 40% more than the first fund which closed in 2019 at $ 2.4 billion. of dollars.

In total, Carlyle’s global lending business – which includes guaranteed loan obligations, mortgages and other lending strategies – totaled $ 61 billion in assets under management as of June 30.

At the same time, the investment periods for funds are getting shorter, especially for credit funds, as transactions are executed and funded in shorter time frames, Lee said. Typically, Carlyle executives have invested a fund over a time horizon of four or five years, which has “accelerated” to four and, “in some cases three years, maybe even earlier in some classes. high-speed assets like credit, ”he said. noted.


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Florida Board of Education Unanimously Approves Attendance and Transfer Policies – 104.5 WOKV

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Jacksonville – The Florida Board of Education has unanimously adopted two rules regarding harassment and student attendance with respect to COVID-19 protocols.

Scheduled a week after Gov. Ron DeSantis rejected a mask mandate for Florida schoolchildren, President Tom Grady, along with members of his board of directors, publicly voted to allow student victims of “COVID-harassment.” 19 ”to receive Hope Scholarship funding to attend a different school.

Initiated in 2018, the Hope Scholarships are designed to protect students who experience beatings, harassment, hazing, intimidation, kidnapping, assault, robbery, sexual offenses, beatings, threats and / or intimidation. Kindergarten to Grade 12 students, who receive scholarship funds, may be transferred to a school in their district or to a private school that accepts scholarship students, or they may attend a school in a district completely. different.

Council General Counsel Matt Mears has assured the public that the Hope Scholarship transfer procedures offer parents the opportunity to impact the education and health options of those who suffer from bullying because of COVID. Problems, he says, which “interfere considerably with a student’s academic performance.”

Mears defined harassment as “any threatening, discriminatory, insulting or dehumanizing verbal, written or physical behavior suffered by a student in connection with or as a result of school district protocols for COVID, including face coverings, separation of students and COVID19 testing requirements. “

Mears confirmed that funding for the Hope Scholarship comes from qualifying sales tax contributions from the purchase of a motor vehicle.

“Hope scholarship money is not money that has been allocated to districts,” he said. “When people buy a car, they can choose to donate to the Hope Scholarship. These funds are then made available to help parents bring their child out of a situation that is 100% consistent with a parent’s right to direct the education and health of their child.

The attendance of the students was also at the rendezvous. In most cases, students are required to attend school to earn attendance credit. However, due to COVID, as long as students are working remotely with the school’s approved curriculum, they will be considered in attendance.

“To continue their education and earn credits, students must have access to class homework, class materials, and instructors to help students with class homework,” Mears continued. “The goal is to avoid learning loss for students in quarantine so that students are not disadvantaged or have no learning loss.”

The Duval County School Board allows parents to submit documents if they want their children to opt out of the county mask mandate.


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Russia sentences US investor Calvey to 5.5 years suspended prison sentence

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US investor and founder of private equity group Baring Vostok, Michael Calvey, attends a court hearing in Moscow, Russia on August 15, 2019. REUTERS / Evgenia Novozhenina

MOSCOW, Aug.6 (Reuters) – A Russian court on Friday sentenced US investor Michael Calvey to a 5.5-year suspended sentence for embezzlement, a day after convicting him in a shocking case the Russian business community.

Calvey, the founder of Russia-focused private equity group Baring Vostok, was arrested along with other executives in early 2019 on charges of embezzlement linked to midsize lender Vostochny. He and the leaders deny the charges.

“The court, unfortunately, did not understand or could not understand the substance of the case with no victim, no damage and no beneficiary,” Calvey told reporters outside the court after the end of the hearing of more than 12 hours.

Calvey will not be allowed to change his permanent place of residence over the next five years without notifying Russian prison authorities, according to the verdict.

“Compared to most cases, receiving a conditional sentence is already almost a victory but, on the other hand, it is simply outrageous to be convicted of a crime that never took place,” he said. Calvey said.

The court sentenced the French national Philippe Delpal, partner of the fund, to a suspended 4.5-year sentence.

“Our colleagues are innocent, and both the criminal case and the court’s verdict are baseless,” Baring Vostok said of the verdict in a statement.

The case prompted several prominent officials and businessmen to voice concerns over the state’s handling of trade disputes and executives have been trapped there.

Calvey told a court last month that an innocent verdict in his case would trigger billions of dollars in foreign investment and help create thousands of new jobs. Read more

The public prosecutor has requested a six-year suspended prison sentence on a charge of embezzlement of 2.5 billion rubles ($ 34.04 million).

Initially placed in pre-trial detention and then under house arrest, Calvey and his colleagues saw their restrictions relax in November, a decision hailed at the time by the head of the Russian sovereign wealth fund as an important signal to the entire investment community.

Sovcombank, Russia’s third-largest private bank and among the country’s top 10 by assets, agreed to buy Vostochny Bank, the small lender at the heart of the dispute, in March, but did not disclose the financial terms of the dispute. the agreement.

The business dispute between Vostochny’s main shareholders – Baring Vostok and Finvision of businessman Artem Avetisyan – was settled in October.

Baring Vostok has invested more than $ 2.8 billion in projects in Russia since 1994, including internet giant Yandex (YNDX.O), online banking Tinkoff (TCSq.L) and trading company Ozon electronics (OZON.O), which have been successful Nasdaq debuted late last year.

($ 1 = 73.4358 rubles)

Reporting by Lev Sergeev, Alexander Marrow and Maria Tsvetkova; Editing by Leslie Adler and David Gregorio

Our standards: Thomson Reuters Trust Principles.


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Small bank launches green loans with help from fintech

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Virginia Community Capital Bank in Richmond is rewarding the clean energy loan program it started five years ago. But as a small community development finance institution, it lacked the resources to find socially minded depositors on the scale it wanted to fund its solar loans.

Ando, ​​a challenger bank that focuses on sustainability, finds them instead.

With help from fintech Ando, ​​Virginia Community Capital Bank has already provided $ 7 million in solar loans this year to entities such as charter schools, churches and nonprofits, Bill said. Greenleaf, head of the bank’s mortgage lending team and responsible for clean energy lending.

Adobe Stock

San Diego fintech has the attributes of a typical neobank: no monthly fees, early direct deposit, and interest rates that increase in exchange for referrals. But its mission is to finance clean energy, sustainable agriculture, and other green loans from partner banks, including Virginia Community Capital, with assets of $ 233 million (which comes under the VCC name) is the first.

“At VCC, I’ve always dreamed of matching impact-conscious deposit customers directly with the solar loans we make,” said Bill Greenleaf, head of the bank’s mortgage team and head of mortgage lending. ‘clean energy. “We just don’t have the technological infrastructure or the marketing resources to find individual depositors who want to focus on clean energy. “

The program is relatively small and the partnership formed by Ando and VCC is rare, but they highlight the creative ways that financial institutions – even the smallest – can find to support growth and attract a new generation of socially conscious customers.

“You see more grassroots efforts to make the retail consumer understand that he has more options and that, especially when it comes to climate issues, he can do something positive even with his checking account. “said Lauren Compere, Managing Director of Boston Common Asset Management, an environmental firm. conscious investment firm.

Banks are already taking steps to decarbonize their portfolios and help investors identify sustainable options. Recently merged bank reinforced its commitment to social and environmental values; Citizens Financial Group and MUFG Union Bank have announced deposit products for their corporate clients, where the funds will go to environmentally friendly projects. But the partnership between a physical bank and a fintech in this space is unique, Compere said.

“I think we’ll see more models like this,” she said. “The emphasis is on attracting customers who want more transparency on the use of their bank deposits. Customers also want to feel like they have an impact on their banking relationships as a whole.

Small regional banks may find it easier to take advantage of local networks and be more intentional in their lending.

VCC sources its borrowers from a network of solar installers who direct them to businesses, such as wineries or manufacturing companies, typically in the District of Columbia, North Carolina, or Virginia. The bank then takes out and closes the loan, after which Ando will make a deposit equal to that amount.

Greenleaf wishes to lend to projects with a social impact. One example is Solar for All, a DC government initiative to provide low to moderate income families with locally produced energy.

With Ando’s help, Greenleaf hopes to double the clean energy loans it makes this year. So far, he has made $ 7 million in solar loans for entities such as charter schools, churches, and nonprofits.

“Having a dedicated funding source helps us keep up with the growth of the solar lending space,” he said.

He is also looking for ways to promote this partnership.

“I started doing this with a few clients – ‘Your loan was funded by a deposit through this new fintech called Ando, ​​and they are collecting deposits from retail consumers across the country,'” he said. he declares. “My clients are quite enthusiastic about this. “

Ando founder and CEO JP McNeill said his family had made lasting lifestyle changes like switching to electric cars and cutting back on meat in their diets, but they were troubled by the idea that “our money was working against us,” McNeill said. “We realized that the bank can be a force for good.”

The name Ando is a Spanish term meaning “the path” or “the walk”.

“The idea being that there is a new way of doing something that people take for granted,” McNeill said.

The challenger bank partnered with VCC in March, operated in beta until April, and began marketing its product in May. McNeill will not disclose the number of customers, but says Ando is onboarding more than 5,000 customers per month and has seen 15% customer growth month over month. About half of its clients come from referrals. A more recent addition to its growth strategy is its partnership with climber Alex Honnold, who will promote Ando and sustainable banking on social media and create his own initiatives with Ando.

McNeill’s goal is to align Ando with other community and regional banks and credit unions across the country to fund sustainable loans. Since entering into his partnership with Virginia Community Capital, Ando has signed agreements with three other banks. It allows the financial institution to identify and take out loans, after which Ando will communicate to its clients how their money is reducing emissions.

Pie charts in the Ando app show customers where their money is currently going with the VCC partnership (84% to commercial loans for clean energy and 16% to residential loans) and detail Ando’s future financing plans, Which are evenly split between clean energy, sustainable transport, green buildings, sustainable industry, and sustainable agriculture and forestry. Case studies on Ando’s website detail the Virginia Veterinary Clinic, California Schools, and other entities that benefit.

“The idea is for the consumer to understand how they are involved in this whole process,” McNeill said.

“I like the level of transparency provided,” said Compere. “I think demand will increase for impact metrics that show how your deposit is being allocated.” As more and more partnerships emerge, another level of transparency can be demanded: certification by a third party that monitors impact and expected results.

For now, Ando will make money from interchange revenue and off-grid ATM fees. McNeill said he plans to launch other income-generating products in the future.


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Your credit report is important when you apply for jobs

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Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

Employment figures continue to recover after massive layoffs linked to the pandemic in March 2020, with Friday’s employment data beating expectations.

Non-farm payrolls increased by 945,000 jobs, according to the US Department of Labor. That brings overall unemployment down to 5.4%, down from the pandemic peak of almost 15% in April 2020. Job vacancies are increasing in the hospitality, government and business services sectors.

While your resume and LinkedIn profile may be up to the task for this next role, there is one factor about your application that you may not be considering, but your potential employer is: your credit report.

Why your credit report matters when you apply for a job

Your credit report is an overall picture of your ability to manage your credit and pay off your debts on a timely basis. This ratio is usually more important when applying for a car loan, mortgage or credit card.

Many jurisdictions have banned employers from considering credit reports when assessing applicants, and in recent years Congress has stepped in to try to ban the practice all together. However, many states still reserve the right to take your credit report into account when assessing for employment.

States that have enacted laws to limit employers’ rights to your credit reports are: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont and Washington. Several municipalities, including New York and Chicago, also have their own boundaries.

Although they will see information similar to what a lender can review, an employer will not receive the actual numeric number of your credit score.

Why Employers Check Your Credit

Potential employers check your credit for several reasons, including to verify your identity, but also to assess your level of financial responsibility. If your credit report is less than favorable, it can influence the employer’s decision when choosing the best candidate.

Critics say the practice unfairly targets low-income and minority communities, barring them from potential employment opportunities.

Additionally, millions of American credit reports are not completely accurate. According to a 2021 survey by Consumer Reports, 12% of Americans who checked their credit report said they found at least one error. And those errors appear to be increasing, as the Consumer Financial Protection Bureau (CFPB) reported a 54% increase in credit bureau complaints in 2020 over the previous year.

So, if you are looking for a job, consider using a credit monitoring service to avoid one more obstacle between you and your next job.

How credit monitoring services work

Credit monitoring services monitor all activity around your credit report. It is possible to do this manually by requesting a free credit report from AnnualCreditReport.com, but a monitoring service will automate the process for you. You can also receive your credit score for free through many banks and services, but the information they give you may not be as detailed as a full credit report.

In the event that you are offered a job and you consent to a background check, a credit monitoring service will notify you that someone is pulling your credit report. In addition to an employer checking your credit report, you will be alerted if you have any of the following actions initiated on your credit report:

  • Difficult investigations on your credit report, like a credit card application
  • New accounts opened in your name, like a new bank account
  • Updated balances and payments on your credit products
  • New address or name change to your credit report
  • If your personal information is on the dark web, such as your social security number
  • Public folder updates, like bankruptcies

Using a credit monitoring service is a great way to quickly spot fraudulent activity or identify errors that are already present, which helps prevent potential damage to your credit report.

Free or paid credit monitoring services

If a credit monitoring service is right for your situation, there are free and paid services to consider.

If you decide to pay for credit monitoring, there are affordable options that are billed monthly or annually. Paid services aren’t necessarily “better” per se, but they will give you more features that will allow you to look more closely at your three credit reports (Experian, TransUnion, and Equifax).

If you want to try a free credit monitoring service, you may already have access to it through your bank or credit card provider. Large financial institutions like Capital One offer free credit monitoring services to everyone. And if you’re an American Express cardholder, you also have 24/7 access to your credit score.

Consider Experian’s free credit monitoring service, which offers a variety of useful features similar to what you’ll find in the Experian premium service:

Experian Dark Web Scan + Credit Monitoring

On the secure Experian site

  • Cost

  • Supervised credit bureaus

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.


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