Clair

0.44%. That’s the market share of Earned Wage Access (EWA) as a percentage of total US consumer credit. Despite intangible market share, EWA is one of the fastest growing forms of quick and affordable consumer credit. Over the past 10 years, EWA has grown from inexistence to serving more than 7% of businesses across the country and $22bn in annual volume. As the market size increases and EWA matures, we’ve seen all kinds of FinTech companies pop up and bring their own EWA solution to market. However, many are at risk of disappearing overnight. Why? Because they operate in a grey area where wage advances are increasingly being construed as loans. State and federal legislation, scrutiny and enforcement has been increasing, with landmark bills in Nevada and Wisconsin paving the way for a future where all EWA providers must be licensed, compliant and regulated. This movement is happening very fast. At Clair, we thought this was inevitable. We built our offering the hard way from the very start: as a licensed consumer lending program. Check out the video to learn more 👇

Today, a traditional credit score is the most reliable way to lend to America's workforce. However, 1 in 5 American adults (that’s 49M people) don’t have conventional credit scores at all. And many more have credit scores too low for reliable access to credit. At Clair, we use technology to do better. We have the tools to serve America's workforce through newer, more detailed and more reliable data sources: their employment data. If you have a job, you’re working regularly, and those hours can be verified - then you should be able to access credit regardless of your credit score. This is why Alex and I are so passionate about the embedded Earned Wage Access revolution.

When I arrived in the U.S. as a college student, I quickly learned that life here runs on speed. You can split a bill with friends using Venmo or Cash App in seconds. You can get groceries, a taxi, or your favorite show at the press of a button. But when it comes to getting paid for a job - the story is very different. When I worked as an economics tutor on campus, I had to wait 3 weeks for a physical check to arrive in the post. It always baffled me. Why could I transfer $10 to a friend instantly, but wait weeks for money I’d already earned? That question stuck with me. And it eventually inspired me to start Clair. We’re on a mission to simplify payday for America. Check out my video to learn about the unexpected story of how we started and what we do 👇

Congratulations to Clair and Gusto! #Pathward is pleased to power the partnership and #innovation through bank-issued Earned Wage Advances to employees at many of Gusto's supported businesses with no interest. Read the full announcement at https://lnkd.in/gysA4xRW. #FinancialInclusion #ConsumerLending #ForwardThinkingBanking