unbanked and underbanked

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pages: 424 words: 121,425

How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy by Mehrsa Baradaran

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access to a mobile phone, affirmative action, asset-backed security, bank run, banking crisis, banks create money, barriers to entry, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, cashless society, credit crunch, David Graeber, disintermediation, diversification, failed state, fiat currency, financial innovation, financial intermediation, Goldman Sachs: Vampire Squid, housing crisis, income inequality, Internet Archive, invisible hand, Kickstarter, M-Pesa, McMansion, microcredit, mobile money, moral hazard, mortgage debt, new economy, Own Your Own Home, payday loans, peer-to-peer lending, price discrimination, profit maximization, profit motive, quantitative easing, race to the bottom, rent-seeking, Ronald Reagan, Ronald Reagan: Tear down this wall, savings glut, the built environment, the payments system, too big to fail, trade route, transaction costs, unbanked and underbanked, underbanked, union organizing, white flight, working poor

FDIC, “Addendum to the 2011 FDIC National Survey of Unbanked and Underbanked Households: Use of Alternative Financial Services,” June 2013, accessed March 17, 2015, www.fdic.gov/householdsurvey/2013_afsaddendum_web.pdf. Michael Barr’s survey results from his book No Slack shows that when the unbanked are asked what changes to bank accounts would induce them to open an account, 29 percent of respondents said lower fees, 20 percent convenience, 10 percent get money faster, 14 percent lower minimum balance, 16 percent less confusing fees, and 11 percent nothing. Barr, No Slack, 32. 26. The majority of banks, 87 percent, require a third-party screen before they will open checking accounts, and 81 percent of banks require third-party screens to open savings accounts. FDIC, “Banks’ Efforts to Serve the Unbanked and Underbanked,” December 2008, 11, accessed March 17, 2015, www.fdic.gov/unbankedsurveys/2008survey/index.html. 27.

Mobile bill-pay, money transfers, and deposits could mean less wasted time for everyone. This is the story of South Africa’s foray into mobile banking: In South Africa, where only half the population has bank accounts, but nearly everyone has a mobile phone, a company called WIZZIT set out to bank the unbanked with an aspiring worldwide mission to “change the world by providing banking opportunities to the 4 billion unbanked and under-banked [globally] through cell phone technology, leading to a reduction in poverty and the creation of economic citizens.”79 However, the company not only failed to reduce poverty worldwide, but as it turned out, the banked and higher-income population, who relied on the service to conduct more banking transactions at increased convenience, comprised most of its South African customer base. A 2011 Harvard Business School case study on WIZZIT criticized the plan as presumptuous; said one author: “The mistake a lot of us make is to look at the folks at the base of the pyramid and assume they must need the same types of services we need.”80 There is reason to think mobile banking will not be the unbanked’s answer in the United States.

Consumer Financial Protection Bureau, “Nashville, TN: Field Hearing on Payday Loans,” March 2014, accessed March 17, 2015, youtu.be/ZpnXG0UdeoQ; CFPB, “Payday Loans and Deposit Advance Products,” April 24, 2013, 15; CFPB White Paper of Initial Data Findings, accessed March 17, 2015, files.consumerfinance.gov/f/201304_cfpb_payday-dap-whitepaper.pdf; Susan Urahn et al., “Payday Lending in America: Who Borrows, Where They Borrow, and Why,” Pew Charitable Trust, 2012, 32, accessed March 17, 2015, www.pewtrusts.org/~/media/legacy/uploadedfiles/pcs_assets/2012/PewPaydayLendingReportpdf.pdf. 56. FDIC, “National Survey of Unbanked and Underbanked Households,” Executive Summary, September 2012, 5, accessed March 17, 2015, www.fdic.gov/householdsurvey/2012_unbankedreport_execsumm.pdf; Gregory Elliehausen and Edward C. Lawrence, “Payday Advance Credit in America: An Analysis of Consumer Demand,” Georgetown University McDonough School of Business Credit Research, monograph no. 35, 2001, 28, 33, accessed March 17, 2015, www.fdic.gov/bank/analytical/cfr/2005/jan/CFRSS_2005_elliehausen.pdf. 57.

pages: 515 words: 126,820

Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott

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Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Bretton Woods, business process, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, corporate governance, corporate social responsibility, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, Network effects, new economy, Oculus Rift, pattern recognition, peer-to-peer lending, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social software, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, unbanked and underbanked, underbanked, unorthodox policies, X Prize, Y2K, Zipcar

Exchanging Value: Daily, markets globally facilitate the exchange of trillions of dollars of financial assets. Trading is the buying and selling of assets and financial instruments for the purpose of investing, speculating, hedging, and arbitraging and includes the posttrade life cycle of clearing, settling, and storing value. Blockchain cuts settlement times on all transactions from days and weeks to minutes and seconds. This speed and efficiency creates opportunities for unbanked and underbanked people to participate in wealth creation. 6. Funding and Investing: Investing in an asset, company, or new enterprise gives an individual the opportunity to earn a return, in the form of capital appreciation, dividends, interest, rents, or some combination. The industry makes markets: matching investors with entrepreneurs and business owners at every stage of growth—from angels to IPOs and beyond.

., government finance), microlending, crowdfunding, regulators, credit rating agencies, credit score software companies 5. Exchanging Value—speculating, hedging, and arbitraging. Matching orders, clearing trades, collateral management and valuation, settlement and custody Blockchain takes settlement times on all transactions from days and weeks to minutes and seconds. This speed and efficiency also creates opportunities for unbanked and underbanked to participate in wealth creation Investment, wholesale banking, foreign exchange traders, hedge funds, pension funds, retail brokerage, clearinghouses, stock, futures, commodities exchanges; commodities brokerages, central banks, regulators 6. Funding and Investing in an Asset, Company, Start-up—capital appreciation, dividends, interest, rents, or some combination New models for peer-to-peer financing, recording of corporate actions such as dividends paid automatically through smart contracts.

Haluk Kulin, CEO of Personal BlackBox, said, “The biggest redistribution that is about to happen is not a redistribution of wealth but a redistribution of value. Wealth is how much money you have. Value is where you participate.”29 Blockchain can enable every person to have a unique and verifiable reputation-based identity that allows them to participate equally in the economy. The implications of this equality are profound. Lubin imagines a future where the “unbanked and underbanked will become increasingly enfranchised as microlending services will enable investors across the globe to construct diverse portfolios of many microloans of which the usage and repayment can be tracked in full detail on the blockchain, using Balanc3’s [a ConsenSys portfolio company] triple-entry accounting system, for instance.”30 In this new future, when people repay microloans, they are on their way to securing more and larger loans to build their businesses.

pages: 271 words: 52,814

Blockchain: Blueprint for a New Economy by Melanie Swan

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23andMe, Airbnb, altcoin, Amazon Web Services, asset allocation, banking crisis, bioinformatics, bitcoin, blockchain, capital controls, cellular automata, central bank independence, clean water, cloud computing, collaborative editing, Conway's Game of Life, crowdsourcing, cryptocurrency, disintermediation, Edward Snowden, en.wikipedia.org, ethereum blockchain, fault tolerance, fiat currency, financial innovation, Firefox, friendly AI, Hernando de Soto, Internet Archive, Internet of things, Khan Academy, Kickstarter, litecoin, Lyft, M-Pesa, microbiome, Network effects, new economy, peer-to-peer lending, personalized medicine, post scarcity, prediction markets, ride hailing / ride sharing, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, SETI@home, sharing economy, Skype, smart cities, smart contracts, smart grid, software as a service, technological singularity, Turing complete, unbanked and underbanked, underbanked, web application, WikiLeaks

For example, the Islamic Bank of Bitcoin is investigating ways to conduct Sharia-compliant banking with Bitcoin.92 A key point of Bitcoin neutrality is that the real target market for whom Bitcoin could be most useful is the “unbanked,” individuals who do not have access to traditional banking services for any number of reasons, estimated at 53 percent of the worldwide population.93 Even in the United States, 7.7 percent of households are forecast to be unbanked or underbanked.94 Bitcoin neutrality means access for the unbanked and underbanked, which requires Bitcoin solutions that apply in all low-tech environments, with features like SMS payment, paper wallets, and batched blockchain transactions. Having neutrality-oriented, easy-to-use solutions (the “Twitter of emerging market Bitcoin”) for Bitcoin could trigger extremely fast uptake in underbanked markets, continuing the trend of 31 percent of Kenya’s GDP being spent through mobile phones.95 There are different SMS Bitcoin wallets and delivery mechanisms (like 37Coins96 and Coinapult, and projects like Kipochi97 that are integrated with commonly used emerging-markets mobile finance platforms like M-Pesa.

Bitcoin 2013 Conference, May 18, 2013, San Jose, CA. YouTube, June 10, 2013. https://www.youtube.com/watch?v=BT8FXQN-9-A. 92 Senbonzakura (handle name). “Islamic Bank of Bitcoin.” Bitcoin Forum, June 24, 2011. https://bitcointalk.org/index.php?topic=21732.0. 93 Chaia, A. et al. “Half the World Is Unbanked.” McKinsey & Co, March 2009. http://mckinseyonsociety.com/half-the-world-is-unbanked/. 94 “2013 FDIC National Survey of Unbanked and Underbanked Households,” U.S. Federal Deposit Insurance Corporation, updated October 28, 2014, https://www.fdic.gov/householdsurvey/. 95 Mims, C. “M-Pesa: 31% of Kenya’s GDP Is Spent Through Mobile Phones.” Quartz, February 27, 2013. http://qz.com/57504/31-of-kenyas-gdp-is-spent-through-mobile-phones/. 96 Cawrey, D. “37Coins Plans Worldwide Bitcoin Access with SMS-Based Wallet.” CoinDesk, May 20, 2014. http://www.coindesk.com/37coins-plans-worldwide-bitcoin-access-sms-based-wallet/. 97 Rizzo, P.

pages: 361 words: 97,787

The Curse of Cash by Kenneth S Rogoff

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Andrei Shleifer, Asian financial crisis, bank run, Ben Bernanke: helicopter money, Berlin Wall, bitcoin, blockchain, Bretton Woods, capital controls, Carmen Reinhart, cashless society, central bank independence, cryptocurrency, debt deflation, distributed ledger, Edward Snowden, ethereum blockchain, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial intermediation, financial repression, forward guidance, frictionless, full employment, George Akerlof, German hyperinflation, illegal immigration, inflation targeting, informal economy, interest rate swap, Isaac Newton, Johann Wolfgang von Goethe, Kenneth Rogoff, labor-force participation, large denomination, liquidity trap, money: store of value / unit of account / medium of exchange, moral hazard, moveable type in China, New Economic Geography, offshore financial centre, oil shock, open economy, payday loans, price stability, purchasing power parity, quantitative easing, RAND corporation, RFID, savings glut, secular stagnation, seigniorage, The Great Moderation, the payments system, transaction costs, unbanked and underbanked, unconventional monetary instruments, underbanked, unorthodox policies, Y2K, yield curve

Farhi, Emmanuel, Gita Gopinath, and Oleg Itskhoki. 2013. “Fiscal Devaluations.” Review of Economic Studies 81 (2): 725–60. Farhi, Emmanuel, and Ivan Werning. 2016. “A Theory of Macroprudential Policies in the Presence of Nominal Rigidities” (May). Mimeo, Harvard University, Cambridge, MA. Forthcoming in Econometrica. Federal Deposit Insurance Corporation. 2014. “2013 FDIC National Survey of Unbanked and Underbanked Households.” Washington, DC. Available at https://www.fdic.gov/householdsurvey/. Federal Reserve Bank of Boston. 2012. “Diary of Consumer Payment Choice.” Boston. ———. 2013. “Survey of Consumer Payment Choice.” Boston. Federal Reserve Bank of San Francisco. 2004. “How Much Currency Is Circulating in the Economy, and How Much of It Is Counterfeit?” (April). Available at http://www.frbsf.org/education/publications/doctor-econ/2004/april/money-supply-currency-counterfeit.

See also Bank of England United Nations Office on Drugs and Crime, 69, 74, 240n34 United States: Automated Clearing House system, 103; Bitcoin, regulation of, 210; cash circulating, amount of, 31–33; corruption in, 70–71; cost in GDP of buying back all paper currency, 217; counterfeiting, efforts to suppress, 77–78; currency entering or leaving the country, requirement to report large amounts of, 41; currency/GDP ratio, 1948–2015, 33, 36–37; currency/GDP ratio, 1995, 46; currency held by consumers, 3, 49–52; currency of, international significance of, 15–16; currency per capita, 37–38, 40; currency usage, 53–54; discount rate cuts in response to recent crises, 131–32; double-digit inflation, 183; foreign holdings of currency, 39–42, 236n19; foreign holdings of currency, 1985–2015, 45; foreign holdings of currency, estimating, 42–45; gold standard, post–World War I adjustments to, 29; the government’s profit from printing money, 81–82 (see also seigniorage); illegal drug market, estimated size of, 69; inflationary periods in, 27–28; Kleptocracy Asset Recovery Initiative, 72; large-denomination notes, 3, 31; negative interest rates in response to the financial crisis, 123; New York Federal Reserve discount rates, 1929–1939, 128–29; nominal policy interest rates, 2000–2015, 130; $100 bills, rise in demand for, 32–33; $100 North Korean counterfeit “supernote,” 78; paper currency, profits from monopoly on, 217; paper currency in colonial, 26–27; paper currency phaseout, costs and benefits of, 88–89; paper currency supply in small bills, percentage of, 85; payments by instrument type, 54; payments per dollar amount per consumer, 54; phaseout of large-denomination paper currency, proposal for, 95; quantitative easing in, 140–42; revenue as a percentage of GDP, 2006–2015, 83–84; scanner data from retail transactions, 56–57; sexual exploitation in, 74; short-term market interest rates, 1929–1939, 129; tax evasion in, 60–61, 83; terrorism and efforts to tighten enforcement of money-laundering regulations, 77; unauthorized immigrants in, 75; the unbanked and underbanked in, 98; underground economy, estimated size of, 62–63; Volcker’s disinflation effort, 119 universal financial inclusion, 98–100 Velde, François R., 19, 234n13 Venezuela, 184 Vietnam, 191 Vissing-Jorgensen, Annette, 141 Volcker, Paul, 119, 189, 191 Wallace, Neil, 104–5, 225–26 Wallace conjecture, 105, 225–26 Walsh, Carl, 231 Wang, Zhu, 56 Weber, Guglielmo, 239n13 Weber, Warren E., 234n13 Werning, Ivan, 251n3 White, Walter, 240n27 White, William, 176 Williams, John C., 133, 244n11, 245n17 Wolman, Alexander, 56, 244n11, 255n9 Wonderful Wizard of Oz, The (Baum), 192 Woodford, Michael, 145, 227, 230, 243n9 Wu, Jing Cynthia, 244n5, 247n28 Xerxes (king of Persia), 18 Xia, Fan Dora, 244n5, 247n28 Xi Jinping (president of People’s Republic of China), 71 Xu Caihou, 71 Yellen, Janet, 229, 255n5 zero bound constraint, 4–5, 119–27; black hole, similarity to, 124; consumption taxes as approach to, 156–57; fiscal policy and, 249n12; forward guidance as approach to, 145–46; higher inflation targets as approach to, 147–51; historical experiences with, 128–32; macroeconomic stabilization policy and, 124–25; mitigating, options for, 125–27; monetary policy and, 123–24, 227–30; opportunistic fiscal policy as approach to, 154–56; previous experiences of, 122; quantitative easing as approach to (see quantitative easing); quantitative implications of, literature on, 132–35; reemergence of, reasons for, 120–22; relaxing the rigidity of the inflation-targeting framework as approach to, 152–54; targeting nominal GDP as approach to, 151–52.

pages: 280 words: 79,029

Smart Money: How High-Stakes Financial Innovation Is Reshaping Our WorldÑFor the Better by Andrew Palmer

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Affordable Care Act / Obamacare, algorithmic trading, Andrei Shleifer, asset-backed security, availability heuristic, bank run, banking crisis, Black-Scholes formula, bonus culture, Bretton Woods, call centre, Carmen Reinhart, cloud computing, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, David Graeber, diversification, diversified portfolio, Edmond Halley, Edward Glaeser, Eugene Fama: efficient market hypothesis, eurozone crisis, family office, financial deregulation, financial innovation, fixed income, Flash crash, Google Glasses, Gordon Gekko, high net worth, housing crisis, Hyman Minsky, implied volatility, income inequality, index fund, Innovator's Dilemma, interest rate swap, Kenneth Rogoff, Kickstarter, late fees, London Interbank Offered Rate, Long Term Capital Management, loss aversion, margin call, Mark Zuckerberg, McMansion, mortgage debt, mortgage tax deduction, Network effects, Northern Rock, obamacare, payday loans, peer-to-peer lending, Peter Thiel, principal–agent problem, profit maximization, quantitative trading / quantitative finance, railway mania, randomized controlled trial, Richard Feynman, Richard Feynman, Richard Thaler, risk tolerance, risk-adjusted returns, Robert Shiller, Robert Shiller, short selling, Silicon Valley, Silicon Valley startup, Skype, South Sea Bubble, sovereign wealth fund, statistical model, transaction costs, Tunguska event, unbanked and underbanked, underbanked, Vanguard fund, web application

Nesta, “Banking on Each Other,” April 25, 2013, http://www.nesta.org.uk/publications/banking-each-other-rise-peer-peer-lending-businesses. 3. “Withering Away,” Economist, May 19, 2012. 4. Harry DeAngelo and René Stulz, “Why High Leverage Is Optimal for Banks” (NBER Working Paper 19139, August 2013). NOTES TO CHAPTER 8 1. Victor Stango, “Are Payday Lending Markets Competitive?” Regulation (Fall 2012); “National Survey of Unbanked and Underbanked Households” (Federal Deposit Insurance Corporation, 2011). 2. “Margin Calls,” Economist, February 16, 2013. 3. Meta Brown et al., “The Financial Crisis at the Kitchen Table: Trends in Household Debt and Credit,” Current Issues in Economics and Finance 19 (2013). 4. Atif Mian and Amir Sufi, “The Consequences of Mortgage Credit Expansion: Evidence from the 2007 Mortgage Default Crisis” (NBER Working Paper 13936, April 2008). 5.

pages: 239 words: 70,206

Data-Ism: The Revolution Transforming Decision Making, Consumer Behavior, and Almost Everything Else by Steve Lohr

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23andMe, Affordable Care Act / Obamacare, Albert Einstein, big data - Walmart - Pop Tarts, bioinformatics, business intelligence, call centre, cloud computing, computer age, conceptual framework, Credit Default Swap, crowdsourcing, Daniel Kahneman / Amos Tversky, Danny Hillis, data is the new oil, David Brooks, East Village, Edward Snowden, Emanuel Derman, Erik Brynjolfsson, everywhere but in the productivity statistics, Frederick Winslow Taylor, Google Glasses, impulse control, income inequality, indoor plumbing, industrial robot, informal economy, Internet of things, invention of writing, John von Neumann, Mark Zuckerberg, market bubble, meta analysis, meta-analysis, natural language processing, obamacare, pattern recognition, payday loans, personalized medicine, precision agriculture, pre–internet, Productivity paradox, RAND corporation, rising living standards, Robert Gordon, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley startup, six sigma, skunkworks, speech recognition, statistical model, Steve Jobs, Steven Levy, The Design of Experiments, the scientific method, Thomas Kuhn: the structure of scientific revolutions, unbanked and underbanked, underbanked, Von Neumann architecture, Watson beat the top human players on Jeopardy!

“What we lovingly call a data scientist today”: Philip Zeyliger’s descriptions and quotes come from an interview on Aug. 13, 2013. 6: Data Storytelling “Everything you added”: Interview on Sept. 17, 2013, with Sam Adams. Consider start-up ZestFinance: Douglas Merrill’s descriptions and quotes come from an interview on Oct. 30, 2013. fees paid by payday borrowers: For the average borrowers and amounts outstanding, Merrill did his own current estimates as of late 2013. But he also referenced the Federal Deposit Insurance Corporation’s report in September 2012, 2011 FDIC National Survey of Unbanked and Underbanked Households. http://www.fdic.gov/householdsurvey/2012_unbankedreport.pdf. And he also referred to a July 2012 report by the Pew Charitable Trusts, Payday Lending in America: Who Borrows, Where They Borrow, and Why. http://www.pewtrusts.org/en/research-and-analysis/reports/2012/07/19/who-borrows-where-they-borrow-and-why. people like Tara Richardson: Her descriptions and quotes come from an interview on Dec. 5, 2013.

pages: 329 words: 95,309

Digital Bank: Strategies for Launching or Becoming a Digital Bank by Chris Skinner

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algorithmic trading, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, bank run, Basel III, bitcoin, business intelligence, business process, business process outsourcing, call centre, cashless society, clean water, cloud computing, corporate social responsibility, credit crunch, crowdsourcing, cryptocurrency, demand response, disintermediation, don't be evil, en.wikipedia.org, fault tolerance, fiat currency, financial innovation, Google Glasses, high net worth, informal economy, Infrastructure as a Service, Internet of things, Jeff Bezos, Kevin Kelly, Kickstarter, M-Pesa, margin call, mass affluent, mobile money, Mohammed Bouazizi, new economy, Northern Rock, Occupy movement, platform as a service, Ponzi scheme, prediction markets, pre–internet, quantitative easing, ransomware, reserve currency, RFID, Satoshi Nakamoto, Silicon Valley, smart cities, software as a service, Steve Jobs, strong AI, Stuxnet, trade route, unbanked and underbanked, underbanked, upwardly mobile, We are the 99%, web application, Y2K

M-PESA is an example of a near-bank system that transacts 20% of Kenya’s GDP outside the banking system. The discussion of their success is covered later in this journal in my interview with John Maynard, but the key comment he makes is that since M-PESA launched in 2007, the number of people who now have bank accounts with the traditional banks has almost quadrupled. The reason? As mobile money provides inclusion for the unbanked and underbanked, they become recognised as financially viable citizens and therefore for financial inclusion by being banked. Similarly, when banks find they cannot offer services to customers through this credit crisis that were previously offered, such as credit, other services gain traction. This is clear from the rise of crowdfunding platforms like kickstarter and social lending services like Zopa, Smava and Prosper.

Frugal Innovation: How to Do Better With Less by Jaideep Prabhu Navi Radjou

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3D printing, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Albert Einstein, barriers to entry, Baxter: Rethink Robotics, Bretton Woods, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cloud computing, collaborative consumption, collaborative economy, connected car, corporate social responsibility, crowdsourcing, Elon Musk, financial innovation, global supply chain, income inequality, industrial robot, Internet of things, job satisfaction, Khan Academy, Kickstarter, late fees, Lean Startup, low cost carrier, M-Pesa, Mahatma Gandhi, megacity, minimum viable product, more computing power than Apollo, new economy, payday loans, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, precision agriculture, race to the bottom, reshoring, ride hailing / ride sharing, risk tolerance, Ronald Coase, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, six sigma, smart grid, smart meter, software as a service, Steve Jobs, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, transaction costs, unbanked and underbanked, underbanked, women in the workforce, X Prize, yield management, Zipcar

Additionally, American Express Ventures, established in 2011 in Silicon Valley, will invest in early-stage start-ups to help people manage their finances better. In June 2014, AmEx launched a Financial Innovation Lab, where researchers and counsellors work together to support credit building and savings; the lab’s results will be made publicly available. Through these multiple initiatives, AmEx is attempting to understand and solve a complex, multi-dimensional socio-economic problem. The unbanked and underbanked spend 10% of their $1 trillion disposable income on fees, the same amount as they spend on food. Schulman asks:13 “Imagine if you could turn loose almost $100 billion back into the economy?” Engage restless entrepreneurs, hackers and tinkerers Airbnb, an online short-let rental company, was launched in 2008 by Brian Chesky and Joe Gebbia, two young people with no experience of the hotel industry.