Increasing Economic Opportunity for the Underserved - Luz Urrutia, Global Head of Retail at Oportun

Luz Urrutia, the global head of retail at Oportun, has been carrying the same credit card in her wallet for 30 years. Having moved from her native Venezuela to the U.S. to study finance at Georgia State University, Luz was thrilled when she landed her first job in the banking industry – only to have her credit card application rejected by the same bank where she worked! Having little or no credit can make adjusting to life in a new country extremely onerous. In our conversation, Luz points out that anything from getting a job to renting an apartment and hooking up utilities is often impossible without a FICO score.

Currently, almost half of the Hispanic community in the U.S. is underserved. Luz decided years ago to help the 25 million individuals who represent the un- and under-banked in her community by offering responsible credit-building and affordable loans. Before moving to California to broaden her mission, Luz co-founded and served as President and Chief Operating Office for El Banco de Nuestra Comunidad in Atlanta. Since then, her career has been characterized by a relentless drive to use technology and creative techniques to “score the unscorable” and serve those overlooked by traditional financial institutions.

Oportun, formerly Progreso Financiero, was founded in 2005 with the same goal of empowering underserved Hispanic consumers. Its proprietary technology platform scores applicants, even those who do not have credit, and enables Oportun to provide a highly personal experience with back-office efficiency. Headquartered in Redwood City, CA, the customer experience at Oportun is designed with the Hispanic customer in mind. This experience is disseminated through a network of more than 160 stores in five states, often conveniently co-located with or near Hispanic grocery stores, are open 7 days a week into the evening, and staffed by team members who speak Spanish.

In recognition of Oportun’s goals of increasing economic opportunity for its clients, promoting community development, and serving low-income or underserved communities, Oportun was certified by the United States Department of Treasury as a Community Development Financial Institution in November 2009 and re-certified in October 2013.

I spoke with Luz at the Center for Financial Services Innovation’s (CFSI) EMERGE conference in Austin, on whose board she has served since 2004 (full disclosure, I am also on the board). Luz has often been recognized for her commitment to improving the lives of underserved financial consumers, including being named as 2009’s Latina Business Woman of the Year and American Banker’s “Community Banker of the Year” in 2006. Perhaps the greatest reward for Luz, however, is the joy she feels pursuing her mission every day. In our interview you can gladden in her words imbued of passion and excitement (you’ll just have to trust that they were accompanied by a brilliant smile!).

I am happy to offer this episode of Barefoot Innovation as a pick-me-up for anyone who needs a reminder of the unique work being done throughout the industry to use innovation to enhance the lives of financial consumers, and what revolutionary breakthroughs a strong drive to help one’s community can render.

To learn more about Oportun Financial, click here.

You can subscribe to the podcast at iTunes HERE or open your favorite podcast app and search for Jo Ann Barefoot.

Episode 2 - "The Cheerful Disruptors" with Josh Reich and Shamir Karkal from Simple.com

Episode 2 is my lively conversation with the irreverent co-founders of Simple – CEO, Josh Reich, and Shamir Karkal, the company’s CFO.

Simple is a Portland, Oregon start-up offering a simplified, consumer-friendly account for saving and making payments.  Last year it was acquired by the global Spanish bank, BBVA, which has been making bold moves in tech innovation.

Our discussion captures the clear voice of the disruptors who are challenging traditional banking. Josh and Shamir describe the famous email that led to their venture, including why Josh’s friends thought he’d gone crazy (hint: it has to do with regulation). They explain their own very unbankerly backgrounds, and talk with passion about what they think is wrong with mainstream banking, including why it’s so hard for banks to change. 

They made me laugh throughout -- there’s a moment where Josh is explaining the company’s funny style and says, “she had this wicked, wicked sense of humor.”

I think my favorite thing in our talk is how they tell their customers’ stories about Simple making their lives better.  The key is helping people save, including by highlighting a number labeled “Safe to Spend,” rather than the account balance.  Simple idea, isn't it? And powerful.

I feel like Simple might be on track to crack the code on the core problem that bedevils financial consumers: how to get regular people actively engaged. Most people are very interested in what they use their money for, but bored by the money itself -- a fact that leads them into mistakes. Simple is trying to change that.

After we turned off the microphone, Josh said one more thing that has stayed in my mind ever since.  I’ll share it in my postscript at the end of the podcast.

You can subscribe to the podcast in iTunes HERE

Show Notes

The companies:

You can find full information on Simple here, and on BBVA here.

My guests:

Josh Reich, CEO & Co-Founder  — Josh’s career has spanned marketing analytics and quantitative finance, including running a data mining consulting firm, a quantitative strategy group at a $10 billion fund, and core components at the mortgage lead market, Root Exchange. Four years ago, Josh founded Simple, formerly BankSimple, a company that is working to radically redesign banking by using modern technology to help people worry less about money. Josh has a BSc. in mathematics and statistics from the University of Melbourne, most of a medical degree, and an MBA from Carnegie Mellon University.

Follow him on Twitter at @i2pi 

Shamir Karkal, CFO & Co-Founder  — Shamir is a software engineer turned finance and banking expert. Prior to Simple, Shamir was a consultant with McKinsey & Co. specializing in strategy consulting for financial institutions in Europe, the Middle East, and the US. Prior to McKinsey, Shamir was a software engineer. He has a bachelor’s in computer science, a master’s in information technology, and an MBA from Carnegie Mellon University.

Follow him on Twitter at @shamir_k

FAQ’s about Simple:  https://www.simple.com/faq

 Here are the two firm’s announcements about BBVA acquiring Simple:

Here and Here

Please note that the views expressed by guests on Barefoot Innovation are their own and do not reflect the opinions of Jo Ann Barefoot or Jo Ann Barefoot Group LLC, nor do we endorse any product, service, or company discussed.