Research Papers

One Size Does Not Fit All: A Comparison of Monthly Financial Services Spending

by

Rachel Schneider

The Center for Financial Services Innovation (CFSI) has conducted an investigation into the amounts that prepaid cardholders spend each month to conduct essential financial transactions, and compared that to the amounts that they would spend if they remained underbanked or used checking ...

Posted: June 2009

A Tool for Getting by or Getting Ahead? Consumers' Views on Prepaid Cards

by

Sarah E. Gordon

Over the past decade, financial services companies have offered an increasing number of options to households who do not hold or regularly use conventional checking and savings accounts. Some options come from mainstream banks and companies, while others come from “fringe” financial ...

Posted: April 2009

Results of the NBPCA/CFSI Survey:

by Rachel Schneider

Network Branded Prepaid Card Association and CFSI release new data on prepaid card usage and underbanked consumers.  The data delivers results from a survey of 400 underbanked prepaid card users and offers information on consumer satisfaction levels, card usage, rankings of ...

Posted: April 2009

First Encounters Research Description

Corey Stone, CFSI Fellow, will be heading the special research project, "Time to Focus on First Encounters." This research effort will take an in-depth look at first interactions between financial institutions and young people and will spotlight innovative institutions providing products/solutions for ...

Posted: April 6, 2009

PERC RESEARCH-Fully Reporting Nonfinancial Payment Data

by Rachel Schneider

PERC RESEARCH-Fully Reporting Nonfinancial Payment Data: Impact on Customer Payment Behavior and Furnisher Costs and Benefits

 

CFSI is proud to have partnered with PERC on their latest research report, “Fully Reporting Nonfinancial Payment Data: Impact on Customer Payment Behavior and Furnisher Costs ...

Posted: April 2009

The Industry Forecast for Prepaid Cards, 2009

by

Rachel Schneider

More than one-third of the 40 million underbanked individuals in the United States would rather use a prepaid card than a checking account for basic financial transactions if costs were equal. Underbanked consumers say they appreciate the convenience, transparency, and privacy of ...

Posted: March 2009

CFSI and Asset Funders Network - Financial Services and Asset-Building Brief

by Jennifer Tescher

Millions of lower-income consumers lack access to high-quality financial products and services that simultaneously meet their short-term needs and prepare them for long-term financial success. Dramatic changes in technology, demography and the structure of the financial services industry provide new ...

Posted: December 2008

Preferences and Usage of Financial Services Providers inBrief

by Jennifer Tescher

The CFSI inBrief, “Preferences and Usage of Financial Services Providers,” is the newest and latest data released from the CFSI Underbanked Consumer Study. This inBrief takes a deeper look at how consumer usage of financial services providers measures up to their preferences. ...

Posted: November 2008

Highlights from the 3rd Annual Underbanked Financial Services Forum

by Jennifer Tescher

Having recognized the great opportunity underbanked consumers represent for financial services, participants at the Third Annual Underbanked Financial Services Forum turned their attention to better understanding this potential market. The forum, presented by SourceMedia in conjunction with the Center for Financial Services ...

18 pp.   
Posted: October 2008

Prepaid Cards vs. Checking Accounts inBrief

by Jennifer Tescher

Inform your underbanked strategy with the Prepaid Cards vs. Checking Accounts inBrief and take advantage of this newly released segmentation data.  Do you want to bring more underbanked consumers into deeper financial relationships with your institution/organization? Then, you should read this inBrief ...

Posted: September 2008

Insurance and Asset-Building for the Underbanked: A Convening Summary

by Jennifer Tescher

In August 2008, CFSI, the Federal Reserve Bank of Chicago, and the Annie E. Casey Foundation co-sponsored an insurance convening summary.  This summary outlines issues, research, and innovations around serving the insurance needs of underbanked consumers and offers next steps in reaching ...

7 pp.   
Posted: September 2008

Nonprofit Innovations for the Underbanked: Trends and Developments

by

Sarah E. Gordon

An increasing number of nonprofit organizations have entered the underbanked market as facilitators or service providers, resulting in a broader array of affordable and well-designed products and services that provide asset-building opportunities for underbanked consumers.  Nonprofit organizations are innovating in ways that ...

16 pp.   
Posted: September 2008

A Fundamental Need: Small-Dollar, Short-Term Credit

by

Jennifer Tescher

A dramatic series of events related to small-dollar value, short-term credit has unfolded over the last 18 months. Legislators, regulators, and the financial services industry have been closely scrutinizing the payday loan industry and creating market incentives for private-sector innovation. As a ...

23 pp.   
Posted: July 2008

The CFSI Underbanked Consumer Study Fact Sheet

by Jennifer Tescher

The purpose of the study was to conduct a segmentation analysis of underbanked and unbanked consumers based on attitudes, behaviors and experiences relative to both formal and informal financial services, products, and institutions.  Four industry leaders co-sponsored the study with CFSI: ...

Posted: June 2008

Lessons from South Africa: Innovations and Opportunities in Underbanked Services

by

Jennifer Tescher

Financial services professionals in the United States can learn a lot from South Africa. The country has a sophisticated financial services industry, with well-developed capital markets and established companies offering a wide range of personal finance products. However, South Africa also has ...

24 pp.   
Posted: April 2008

Nonprofit Distribution of Prepaid Cards

by

Rachel Schneider

This report explores experimentation in nonprofit distribution and marketing of prepaid debit cards to underbanked consumers. We focus on three community organizations to discover the potential role for such groups in distributing financial services.
 
Community organizations play a critical role in the lives ...
17 pp.   
Posted: March 4, 2008

The Predictive Value of Alternative Credit Scores

By Arjan Schutte and Rachel Schneider

As many as 70 million adults in the United States have no credit score or a limited credit history with the traditional credit bureaus. These consumers represent an important opportunity for lenders to access a new market. But ...

18 pp.   
Posted: November 26, 2007

Highlights from the 2nd Annual Underbanked Financial Services Forum

by

Jennifer Tescher

The 2nd Annual Underbanked Financial Services Forum, held in Dallas in June 2007, brought together a diverse group of banks, credit unions, vendors, and regulators to explore topics such as prepaid cards, remittances, credit scoring, and small-dollar loans. While the 2006 ...

17 pp.   
Posted: November 2007

Toward Better Informed Consumers: A Collection of Strategies from Financial Institutions

by

Kimberly Gartner

Federal regulators first required credit card disclosures in 1968 as a way to help consumers make better-informed decisions about using their cards. But several indicators suggest that disclosures have not been fulfilling their intended purpose. Revolving debt is up, credit card products ...

14 pp.   
Posted: September 2007

The Power of Experience in Understanding the Underbanked Market

by

Jennifer Tescher

Financial institutions have begun to recognize the enormous potential in serving underbanked households, but it is becoming clear that attracting these consumers is no simple task. KeyBank, which began offering check-cashing services and complementary educational curricula for non-customers in 2004, has been ...

20 pp.   
Posted: June 2007

Mobile Financial Services and the Underbanked

by

Jennifer Tescher

Mobile Financial Services and the Underbanked: Opportunities and Challenges for Mbanking and Mpayments

This paper focuses on how mobile phones could be used to provide financial services to the underbanked in the United States. Mobile financial services (MFS) in the United States may ...

41 pp.   
Posted: April 2007

The Insurance Industry and the Underbanked

by

Rachel Schneider

Insurance plays a critical role in asset building. Not only does it provide protection against financial losses caused by death or disasters but it can also help build net worth and protect or transfer wealth. Yet many people, particularly those with low ...

22 pp.   
Posted: March 2007