Gadgetory

typically when a venture capital firm funds a start-up they're banking on a sizable return on the investment but sometimes it's not just about turning a profit VC firms like frontier investments elav our equity and core innovation look for other measures of ROI there's this new sector coming out we're reinvesting companies that try to solve some social problem as well as make money so that's what impact investing is one area focused for impact investing the underbanked individuals who have inadequate access to financial services people walk down the streets one in four wallets either doesn't have a bank account or does but barely uses it and mostly realize an alternative financial services like check cashers and payday lenders VC firm core innovation capital wants to help create options that are more affordable for customers and less risky for service providers so if I can manage my risk better by using some risk algorithm in the cloud versus a guy in the back room to decide if a check is good or bad I can bring my risk levels down 2 basis points as opposed to percentage points and I can pass that savings on to the customer and get a better margin myself cores investments include plastic which offers overdraft proof banking as America tries to recover from a harsh financial crisis the underbanked may be eager for a dose of high-tech help in san francisco I'm SI me das cnet.com for CBS News