Location: New Hyde Park, NY
Industry: Financial services
Professional Services – medium
Founder and CEO
DONE DEAL: In 2008, Andrew Siden realized there was a gap in the offerings of alternative financial services providers. “At the end of the day, they are cashing checks and providing banking services for people who don’t use banks,” says Siden, founder and CEO of PrePaid Ventures. “A major gap in that service offering was a debit card. Bank customers get a checkbook and a debit card when they open a bank account, and I wanted to be able to offer that same service to people who use alternative financial service providers, which in the U.S. alone is estimated to be upwards of 80 million people.” Siden created a prepaid card specifically tailored to this demographic.
Fun Fact: “The company expanded so quickly in a short amount of time, we had to temporarily use the large walk-in closet and kitchen as office space.”
BIG IMPACT: “Prepaid card companies spend a ton of money marketing either on television, radio or direct mail,” says Siden. “We’ve had to do none of that. We simply put our cards in the check cashers’ [premises] and they sell. So we have very, very low costs to acquire a customer, which obviously helps our profitability and helps keep prices down for the end user.” PrePaid Ventures also allows its customers to pay their bills online, providing access to electronic banking for a demographic that hadn’t enjoyed such access in the past.