Green Dot 2015 Annual Report Download - page 7

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PART I
ITEM 1. Business
Overview
Green Dot Corporation, along with its wholly-owned subsidiaries, is a pro-consumer financial technology innovator
with a mission to provide a full range of affordable and accessible financial services to the masses. We are the largest
provider of reloadable prepaid debit cards and cash reload processing services in the United States. We are also a
leader in mobile technology and mobile banking with our award-winning GoBank mobile checking account and a top
20 debit card issuer among all banks and credit unions in the country. Through our wholly-owned subsidiary, SBBT
Holdings, LLC (“TPG”), we are also the largest processor of tax refund disbursements in the U.S. Our products and
services are available to consumers through a large-scale "branchless bank" distribution network of more than 100,000
U.S. retail locations, thousands of neighborhood financial service center locations, online, in the leading app stores,
and through approximately 25,000 tax preparation offices and leading online tax preparation providers.
The combination of our innovative products and services, 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 (the "BHC Act"), as a result of our acquisition of Bonneville Bancorp, the holding company of Bonneville
Bank, a state-chartered Utah bank. The bank was subsequently renamed Green Dot Bank and we became a member
bank of the Federal Reserve System. In 2014 and 2015, we made four acquisitions, including TPG, adding tax refund
processing services to the range of products and services we provide.
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 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.
Segments
As of December 31, 2014 and prior, our operations were organized within one reportable segment. As a result of
acquisitions occurring in late 2014 and early 2015, we have realigned our operations into two reportable segments: 1)
Account Services and 2) Processing and Settlement Services. We identify our reportable segments based on factors
such as how we manage our operations and how our chief operating decision maker allocates resources amongst the
business. Our chief operating decision maker organizes and manages our business primarily on the basis of product
and service offerings and uses operating income to assess profitability. Financial information regarding our segments
and the products and services they provide are included in the information set forth in Item 7. Management’s Discussion
and Analysis of Financial Condition and Results of Operations and Note 23—Segment Information of the consolidated
financial statements contained in Item 8. Financial Statements and Supplementary Data.
Our Business Model
Our business model focuses on three major elements: our consumers; our products and services; and our
distribution channels.
Our Consumers
We have designed our products and services to appeal primarily to consumers living in U.S. households that earn
less than $75,000 annually across the following five consumer segments:
• Unbanked — individuals who do not have a bank account;
• Underbanked — individuals who may hold a bank account of one type or another, but do not maintain sufficient
balances or hold a sufficient enough credit standing to allow that individual to engage fully in the bank's offerings;
• Unhappily banked — individuals who hold a bank account, but are seeking alternative solutions to that account;