Rushcard Providing Financial Services For Unbanked

The hip hop industrialist Russell Simmons tells that the objective of his UniRush LLC Company is to serve those people who do not use banks.

In the coming four weeks, this prepaid credit card developers are aiming at venturing a new product called Goal Wallet which will allow $2 fee refund to RushCard users who will keep a balance of $500 or more than this amount in their account. The company is also aiming a new solution to the high prices of pay day loans.

Simmons talked to ABCNews.com and said:

We are the anti-bank — not in negative way, I want to work and build something that is empowering the poor.

Simmons is of the opinion that RushCard debit card is used by million plus consumers and is easy to buy with just one fee which can range between $3.95 to $14.95 and the users can add funds to their cards whenever they are in need.

Simmons also said that his company aims to provide low cost substitutes for those people who are not able to use banks or who don’t really aim to use banks. The Santa Clara School of Law has researched that using a bank for transactions can charge almost $540 in the whole year.

“Our customers are using check-cashing services,” said Rob Rosenblatt, the CEO of the RushCard.

They use check cashing because they feel it’s necessary and it’s our job to educate them because [the Rush Card] is a much more equitable deal.

The offer of $2 fee refund is quite an appealing picture.

Rosenblatt said:

They’re in the business of charging money to use their money. They’re not in the business of developing a suite of services, including bill pay, that reduces costs for customers.

Look, banks are not inherently evil. They simply don’t have the infrastructure or the cost structure that’s required to serve the middle class. Their model is old and they can no longer afford to serve the middle class,

Simmons concluded in a statement.

Their overhead and branch infrastructure simply make it impractical for them to serve this customer set at a price that these customers can afford. Their problem is compounded by recent regulatory changes that have reduced the fee revenue they collect from merchants every time a customer makes a credit or debit card purchase,

he described.

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