The next major channel for the company, and perhaps the most important in my opinion, are the mobile carriers. In a report issued by the Federal Reserve earlier this year, the mobile financial services industry was reviewed. The report concluded that as the number smartphones increases and their capabilities expand, users will increasingly take advantage of mobile financial services.
When you consider the FDIC estimated 62 million Americans who are underbanked, 20% of our population, you can see the potential within banking industry.
The Federal Reserve report found that 52% of mobile phones are smartphones; moreover, 90% of the underbanked population has access to a mobile phone of which 56% of these phones are smartphones and have the capabilities to take advantage of mobile applications.
Green Dot has partnered with US Cellular in what I believe is an attempt to sign these underbanked citizens who have access to a smartphone. US Cellular will promote GoBank across its Android device portfolio to its five million customers. The customers will be able to easily make cash deposits at the company's distribution points including 7-Elevens.As mobile payment technology expands, I could eventually see a day where Green Dot can scrap the conventional card altogether, instead allowing their customers to bank and transact directly from their mobile devises. Should the company find success here at home, it has the ability to greatly expand on a global level. There are 3 billion underbanked potential customers across the globe whom may have access to smartphone technology, yet no safe financial infrastructure.