Green Dot 2012 Annual Report Download - page 11

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PART I
ITEM 1. Business
Overview
Green Dot is a leading financial services company providing simple, low-cost and convenient money management
solutions to a broad base of U.S. consumers. We believe that we are the leading provider of general purpose reloadable,
or GPR, prepaid debit cards in the United States and that our Green Dot Network is the leading reload network for
prepaid cards in the United States. Other products and services include GoBank, an innovative checking account
developed for distribution and use via mobile phones, which is expected to be available to U.S. consumers generally
during the second or third quarter of 2013. We distribute our products and services nationwide at more than 60,000
retail store locations and on the Internet. The combination of our innovative products, broad retail distribution and
proprietary technology creates powerful network effects, which we believe enhance the value we deliver to our
customers, our retail distributors and other participants in our network.
We were incorporated in Delaware in October 1999 as Next Estate Communications, Inc. and changed our name
to Green Dot Corporation in October 2005. We completed our initial public offering of Class A common stock in July
2010. In December 2011, we became a bank holding company under the Bank Holding Company Act of 1956, as
amended, or the BHC Act, as a result of our acquisition of Bonneville Bancorp, the holding company of Bonneville
Bank, a state-chartered Utah bank, which was renamed Green Dot Bank and became a member bank of the Federal
Reserve System after the acquisition. In November 2012, we completed the process of transitioning our card issuing
program with Synovus Bank to Green Dot Bank. Upon this transition, all Green Dot-branded GPR cards are now
issued by Green Dot Bank.
We manage our operations and allocate resources as a single operating segment. Financial information regarding
our operations, assets and liabilities, including our total operating revenues and net income for the years ended
December 31, 2012, 2011, and 2010 and our total assets as of December 31, 2012 and 2011 are included in our
consolidated financial statements and related notes in Item 8, Financial Statements and Supplementary Data.
Our principal executive offices are located at 3465 East Foothill Boulevard, Pasadena, California 91107, and our
telephone number is [phone]. We maintain a website at www.greendot.com. We make available free of charge,
on or through our website via the Investor Relations section at http://ir.greendot.com, our annual report on Form 10-
K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports filed or furnished
pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after filing such material
electronically or otherwise furnishing it to the Securities and Exchange Commission, or the SEC. References to website
addresses in this report are intended to be inactive textual references only, and none of the information contained on
our website is part of this report or incorporated in this report by reference.
Our Business Model
Our business model focuses on three major elements: our consumers; our distribution; and our products and
services.
Our Consumers
We have designed our products and services to appeal primarily to consumers living in households that earn less
than $75,000 annually across the following four consumer segments:
• Never-banked — households in which no one has ever had a bank account;
• Previously-banked — households in which at least one member has previously had a bank account, but no
one has one currently;
• Underbanked — households in which at least one member currently has a bank account, but that also use
non-bank financial service providers to conduct routine transactions like check cashing or bill payment; and
• Fully-banked — households that primarily rely on traditional financial services.
Based on data from the Federal Deposit Insurance Corporation, or FDIC, the Federal Reserve Bank, the U.S.
Census and the Center for Financial Services Innovation and our proprietary data, we believe the addressable portions
of these four consumer segments collectively represent a market opportunity of approximately 160 million people in
the United States for our products and services.
Customers in these different segments tend to purchase and use our products for different reasons and in different
ways. For example, we believe never-banked consumers use our products as a safe, controlled way to spend cash
and as a means to access channels of trade, such as online purchases, where cash cannot be used. We believe