As CashRepublic opens its fifth Orlando financial services center, it already has begun construction on its first Tampa store.
Orlando-based CashRepublic Financial LLC will expand to Tampa after opening five stores in metro Orlando in roughly a year, according to CEO Alok Prasad.
Through an online platform and brick-and-mortar stores, CashRepublic cashes checks, wires money and provides other financial services for individuals and small businesses without a bank. For checks worth $1,000 or less, the company charges flat fees based on the value of the check. For checks worth more than $1,000, Cash Republic charges a 2% fee.
Check-cashing services typically charge between 1%-10% of a check’s value, according to personal finance company NerdWallet. CashRepublic’s flat fees equate to between 0.98%-2.5% of the value of a check worth more than $200, putting the company’s fees on the lower end of that spectrum.
After a successful year of expansion in Orlando, CashRepublic will enter a new metro for the first time when it opens its Tampa store at 1821 E. Fowler St. within the next four months, Prasad said.
The Tampa store is the first step in CashRepublic's hopes to build a statewide presence, with plans for future stores in Jacksonville and Miami as well. That growth supports the creation of retail, finance, marketing and technology jobs in Orlando and beyond.
Meanwhile, Prasad said CashRepublic's low-cost services will be even more valuable in the underbanked communities it targets as the U.S. economy faces a likely recession.
"We continue to see very strong momentum," he said.
However, CashRepublic will not open any more metro Orlando stores this year. Instead, the company will focus on customer engagement to win over new clients in the Central Florida market.
In addition to opening new stores, CashRepublic increased its product offerings this year. That included adding car insurance services and a free debit card that a third of CashRepublic's customers have adopted in three months, Prasad said. "This brings these communities to the cashless economy. If you don’t have a card, you're being left behind."
The company is led by Prasad and Board Chairman Rajib Das, a pair of longtime finance and banking leaders who have known each other more than 30 years. Das is the founder and CEO of Lexington Park Group, the primary investor behind CashRepublic, while Prasad previously was president of multibillion-dollar London-based fintech firm OakNorth. Both Das and Prasad previously worked at multiple New York-based finance firms, including investment bank giant Merrill Lynch.
A big swath of Americans don't have access to financial services through a bank or credit union. In 2019, the FDIC found there were 7.1 million U.S. households in which no one had a savings or checking account at bank or credit union. A lack of funds was the primary reason, the federal agency reported.
"About half of unbanked households cited, 'Don’t have enough money to meet minimum balance requirements' as a reason for not having an account — the most cited reason."
