September 2011 Newsletter
October 2011 | IL

 
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Vol. 7 Issue 8 September 2011
 

Reaching Underbanked Consumers Through Mobile Services    

mobile phoneUnderbanked consumers need minute-to-minute information about their finances, and mobile financial services are well suited to deliver it. Although these consumers often have insufficient access to financial services, their access to mobile phones is fairly widespread. This disparity suggests a large opportunity exists for financial providers to effectively serve the underbanked population using the mobile channel.

 

We invite you to download the White Paper here to learn more about the mobile opportunity.

 

You can also check out a two-page InBrief summarizing the key takeaways from the paper.  

 

Webinar Event

 

Join us on September 13 at 1 p.m. CDT for a webinar featuring key innovators in mobile financial services, as well as CFSI's latest research on this topic. CFSI's Analyst, Innovation and Research, and co-author of our recent paper "Reaching Underbanked Consumers Through Mobile Services,"Kate Marshall, will lead the discussion.  Also presenting will be Richard Kang, CEO of Wipit, and Patrice Peyret, CEO of Plastyc, Inc. Click here to register.
 
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CFSI Provides Feedback to CFPB and OCC Regarding Key Underbanked Issues

CFSI recently responded to two request for comments to the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC). The first was in response to the CFPB's notice and request for comment on defining "larger participants" for the purposes of CFPB supervision on June 29th, 2011. The second was in response to the request for comments on the OCC's proposed guidance on safe and sound banking practices for deposit-­-related consumer credit products on June 8, 2011.

 

These comments reflect our belief that effective public policy must do three things: protect consumers from unsafe and harmful products and practices; ensure that they have access to safe and affordable products and services; and ensure that providers operate safely and soundly. The CFPB and the OCC have a unique and valuable role to play to ensure these three tenets are met.

 

Click below to read:  
 
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BAI: Boxing In Prepaid Card Fees

According to research released earlier this year by the Pew Health Group, 111 pages is the median length of account disclosure documents among the 10 largest banks in the country. These documents are also usually not written or laid out in the most consumer-friendly manner. Confusing disclosures are bad enough when it comes to checking accounts, but can be even more detrimental when applied to prepaid cards. Users of this product tend to have lower incomes and often live from paycheck-to-paycheck. They need to be able to anticipate the cost of using a specific prepaid product so they can avoid going into the red.

 

CFSI Senior Policy Analyst David Newville discusses the need for

prepaid cards to have clearer fee disclosure requirements, and ideally a 'Schumer Box' model, in this BAI article. Click here to read more. 
 
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Study: Competing for Underbanked Relationships 

SYNERGISTICS Research has recently completed a study on the underbanked segment of the population to examine their financial services usage and to identify opportunities for financial services providers to establish long-term relationships with this often overlooked market. It is estimated that 56 million U.S. consumers, or about one-fifth, do not have a bank account and are unbanked, and many more are underbanked - having only a basic checking or savings account. The report provides an in-depth analysis of survey results, background research, a concise executive summary, and a commentary providing insights into the financial services needs of the underbanked segment. Contact Steve McKinnon at 404.965.7278 or  smckinnon@src-co.com.

 
 
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News from: 

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CFSI's strategic partner Core Innovation Capital's Managing Partner Arjan Schütte blogs on important issues affecting underbanked consumers as well as innovative financial services products. This month, read Arjan's comment letter to the OCC on small-dollar loans and about his thoughts on CSR (is it a hypocritical window-dressing?).  

 

Check out Arjan's Forbes.com article this month as well, asking why choosing banking options can't be as simple as ordering from a Chipotle menu. 

 

For more information about Core Innovation Capital, or if you are a company seeking investment opportunities, visit http://www.corevc.com.

 
 
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Innovators Showcase

If you want to know how our showcased innovators are transforming the financial services landscape to better serve underbanked consumers, check out these recent and archived articles and press releases ...   
    • NetSpend Teams With Prepaid Resources to Launch BenefitsExpress(TM) Innovators Roundtable Participant NetSpend launches BenfefitsExpress(TM), its private-labeled automated direct deposit enrollment management application engineered and powered by Prepaid Resources, a leading technology provider for the prepaid debit industry.      
    • Wal-Mart Expands Check-Cashing Services  Innovators Roundtable Participant Wal-Mart is increasing their check cashing business, expanding on their motto to offer "every day low prices" and "convenience" across multiple product offerings.   
    • Citi and Self-Help Expand Micro Branch Model Innovators Roundtable participant Citi, and former grantee Self-Help, expand the Micro Branch Model to move people away from alternative and sometimes costly financial services. 

       
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CFSI Speaking Engagements  

 

  • September 15, 2011 | CFE Cities Panel, The Future of Prepaid Cards| Los Angeles, CA. David Newville, Senior Analyst, Policy, will touch on the role of prepaid cards in helping the unbanked and in delivering paperless pay and benefits. 
  • September 20-22, 2011 | Advance 2011| San Diego, CA. Josh Turnbull, Managing Consultant, Advisory Services, will speak at this conference on a panel titled "Rediscovering the Consumer." Join Josh as he discusses how alternative credit scores and credit data are redefining the credit waterfall, and examines how creditors are using alternative credit scores to redefine credit decisioning. Use CFSI Member discount code FDI2011 for $400 off the registration price. 
  • September 26, 2011 | Illinois Jump$tart Coalition| Chicago, IL.Joshua Sledge, Analyst, Innovation and Research, will speak at the Illinois Jump$tart Coalition 2011 Teachers Conference. The conference gives Jump$tart partners a platform to share their resources and expertise with the education community and demonstrate appreciation and support for teachers.
  • October 17, 2011 | Pathways to Prosperity Conference  |Durham, NC. CFSI President and CEO Jennifer Tescher will be the Keynote at this conference on asset-building and financial education. 
  • October 19, 2011 | Alliance and UNCA National Conference| Washington, DC.  CFSI Director, Advisory Services and Nonprofit Investments, Sarah Gordon speaks about the future of Financial Capability along with Bank of America. The conference will focus on how different organizations will shape future of the nonprofit human services and community development efforts.    
  • October 28, 2011 | 23rd Annual FISCA Conference | Orlando, FL. CFSI will be speaking at the 23rd annual FISCA conference. This year's theme is Embracing the Future: Keys to Surviving an Evolving Marketplace.   
  • November 9, 2011 | The Clearing House | New York, NY. CFSI Vice President, Innovation and Research, Rachel Schneider will speak at this first annual business meeting and conference on the panel "From "Un" to "In:" A Fresh Look at Ways to Move the Un- and Underbanked into the Payments Mainstream."  
  • November 16, 2011 | Opportunity Finance Network | Minneapolis, MN. CFSI Vice President, Advisory Services, Kimberly Gartner and Core Innovation Capital's Managing Partner ArjanSchütte are speaking at this event on the panel "Intro to the Financing Needs of Consumers."
  • November 17, 2011 | Opportunity Finance Network | Minneapolis, MN. CFSI Director, Advisory Services and Nonprofit Investments, Sarah Gordon will speak at this event on the panel "Consumer Finance: Partnership and Other Delivery Options."      
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