How FinTech Is Helping the Homeless
Poverty and homelessness, sadly, seems to be a problem we have yet to solve. This is not because of a lack of compassion, however. People want to help, but sometimes they don’t know how and sometimes they fear their help is going to cause more harm than good.
There is another issue slowly trickling in: As coins become used less frequently, the spare change that used to be handed over as a small token of assistance no longer exists. When this cashless society fully sets in, how will those who wish to offer assistance, however minor it may seem, go about it?
Several startups saw this issue coming and have set out to find a solution.
Spare is an app that is seeking to get people to donate in the easiest way possible. When New Yorkers pay the bill at restaurants that have partnered with Spare, they can round up their bill and send that extra change to Spare, which uses the funds to support New York food banks. Just 99¢ (the maximum donation) can help provide four meals.
Plus, to offset one of the usual biases against charity (“I have no proof this money is actually going to help those in need,” etc.) the Spare app has a feature that allows you to track how many meals have been provided. And as an added incentive, the app offers rewards, ranging from a complimentary cocktail to $15 off your meal, so participants can know they have helped people in their community who are need of food and get something back from their efforts, drawing in people who might be hesitant to part with their change.
BlockCrushr Labs is another startup aiming to find a solution. Although their system is still in its early stages, it will one day allow people to donate money to digital food wallets, which homeless people can then use in participating retailers to buy food for themselves. The concept behind this technology is it makes giving easy and also gives the homeless a sense of dignity and stability in their lives. And before you question how these wallets would get used by those in need, note that a surprising number of homeless people have access to smartphones (often donated by various charities and corporations that know how important a lifeline that access is), which would give them the ability to check their balances.
As we move more and more towards a cashless society, it is important to not forget those who may not have access to the technological advances and could suffer from the changes these advances bring. Luckily, FinTech has foreseen the coming storm and is working to find solutions that will result in a better financial world for everyone.