As neobanks replace the community banks of yesteryear as financial providers for affinity groups – including, for example, immigrants, LGBT consumers, and African Americans – Stretch is looking to zero in on the financial needs of the around 600,000 individuals in the U.S. who have been released from state and federal prisons every year.

Why should we care?
Stretch, an early-stage startup, is partnering with Evolve Bank & Trust to offer a no-monthly fee account, debit cards, and fee-free ATM access. The app-based platform also offers users on jobs at companies that hire people with criminal records. “You have a free checking account, but the main thing is being able to find that job so you have a place to put that paycheck,” Keith Armstrong, founder and co-CEO at Stretch, said in an interview. Stretch is partnering with the Anti-Recidivism Coalition (ARC) – a California-based nonprofit that helps the formerly incarcerated get back on their feet – to find customers. Formerly incarcerated people face obstacles rebuilding their financial lives, especially since their previous financial institution may have terminated its relationship with the consumer due to inactivity or balances dropping below zero. Stretch plans to monetize its offerings through interchange fees and the upcoming launch of other products and services.