CASH & DIGITAL CURRENCY
SECURITY & COMPLIANCE
A. Lyle Elias
ATMIA Founding Director
Global banking goes social; Interview with GlobeOne CEO, Les Riedl
I had the opportunity to interview Les Riedl, GlobeOne CEO last week at Money2020. Les defines success as making a social impact in the world and joined GlobeOne to do just that, with a commitment to tackling financial inequality by creating a truly global social banking community. Prior to GlobeOne, Les founded Bank Solutions Group and served as the firm’s senior managing partner, helping mid-sized banks and credit unions thrive in a difficult environment. Les said, “We started out by doing crowdsourced research into the financial services needs of millennials. Many are underbanked or living paycheck to paycheck, which has kept them out of mainstream banking, where the associated costs can represent a significant percentage of their disposable income. The lowest income segment pays the highest fees that are often incurred through fringe banking for check cashing services, payday loans and remittances.” Les went on to say “Validation of the GlobeOne proposition came from millennials’ demands that a solution be both mobile-based and incorporate a socially-conscious element benefiting the community at large.”
The GlobeOne model is based on a common set of rules where third party banks own the relationships and offer a demand deposit account (DDA) to members, as opposed to credit card and prepaid debit card alternative accounts.
The services offered through GlobeOne member banks are high quality bank accounts with a low monthly fee that include debit cards, restricted savings accounts with access to credit and the opportunity to build a credit rating. Les said, “Globally thirty percent of millennials send money home to their families, so we offer member to member remittances where the only cost is the forex fee which is limited to 2% or less.” Les also said, “Our patent-pending process SocialBoost™ gives 50% of the line of credit interest charges back to both the individual member and the worldwide GlobeOne community for referring their friends and families, providing a social benefit which was one of the important inputs from our millennial research.”
According to the GlobeOne mission statement, 80% of people worldwide have no meaningful savings, which creates stress on individuals, local communities and governments. Two billion people worldwide lack access to formal financial services, making it increasingly difficult to engage with a rapidly changing global economy. That’s the challenge GlobeOne has set for themselves.