Categories: Business

James Gutierrez Offers Innovative Financial Solutions for Low-Income

James Gutierrez, inclusivity proponent and owner of several fintech companies, is not content with the status quo when it comes to income disparities in the United States. According to Gutierrez, low-income and minority Americans continue to lose financial ground while the wealthiest Americans continue to get richer. He cites the COVID-19 pandemic as a recent and especially troubling example.

Impact of the COVID-19 Pandemic on Minority Communities

Both white and non-white American workers experienced record unemployment when businesses began shutting down in response to the coronavirus pandemic in April 2020. Just two months later, the unemployment rate for white Americans was down to 12.4 percent. Although still extremely high, minority workers saw their unemployment increase during the same two-month period to 16.8 percent. That rate was the highest it had been in over 10 years. Unemployment rates for various minority groups for the second quarter of 2020 were as follows:

  • African American, 17.4 percent
  • Hispanic, 16.9 percent
  • Asian, 13.3 percent

During the same period of April to June 2020, the average unemployment rate for white Americans was 10.8 percent.

Unemployment was not the only factor that impacted minority populations differently than white populations during the COVID-19 pandemic. Black communities in particular have seen a disproportionate amount of pandemic-related death and serious illness.

Seeing family members die without life insurance underscored its importance for thousands of low-income minority families. Unfortunately, few life insurance companies tailor offers to individuals and families with income levels below the 50th percentile. James Gutierrez is setting out to change that. His company recently released a new mobile platform offering life insurance options and banking solutions to populations traditionally underserved by the larger financial community.

Why Paying Cash Does Not Solve the Wealth Gap Problem

To avoid paying compounded interest rates as high as 230 percent, low-income individuals and those with a checkered credit history often resort to saving money and paying cash for big-ticket items. The problem with this approach is that it does not help them build a credit history. Gutierrez advises clients at his fintech companies to take out a small, manageable amount of debt and make payments on time every month. Taking this approach will help to increase their credit score for future purchases.

Other Solutions James Gutierrez Has Provided through His Fintech Companies

Gutierrez has developed a system to provide low-interest loans to people in underserved communities who would normally pay a much higher interest rate. He is also currently reaching out beyond the banking industry to provide collective financial services for people in lower-income brackets. His plan is to continue offering services to his clients as their income increases. James Gutierrez’s long-term goal is to close wealth gaps, particularly among minority households across the United States.

Also Read: Launch Your Grocery Delivery App Like DoorDash That Fits Your User’s Grocery Demands

Gutierrez is extremely critical of what he calls opportunistic exploitation of low-income Americans that only bury them further in debt. As he continues to create new approaches, he understands that the most important thing he can offer his clients is transparency. Although still extremely high, minority workers saw their unemployment increase during the same two-month period to 16.8 percent. That rate was the highest it had been in over 10 years.

sanchitmehta

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