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Green Dot: Running on Fumes

Green Dot is a vertically integrated fintech/payment company mainly serving unbanked/underbanked population – people with limited access to the traditional banking system. It emulates traditional banking experience (cash deposit/withdrawal, digital payment, bank accounts) through a network of over 100,000 retail locations and digital banking.

Its consumer business (59% of revenue, 93% of earnings, -8% y/y) pioneered the prepaid cards industry that allowed its core customers to participate in digital payment. As of FY19, Green Dot has 5 million active accounts (-5.6% y/y).

Green Dot launched Banking-as-a-Service platform (39% of revenue, 7% of profit, +26% y/y) to grow 2B business, where GDOT becomes the back-end technology to help customers provide payroll, banking, and disbursement service to employees and/or customers. BaaS counts Apple, Uber, Intuit, and Walmart among its customers.

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