Tuesday, July 23, 2013

International Remittances: New Models Offer Some Growth

International remittances between consumers is a large and growing market. New branchless models are contributing to the growth, but not overwhelmingly.

According to a new report by CGAP (the Consultative Group to Assist the Poor),remittances to developing countries will top $515 billion this year. Since 2004, these remittance flows have been growing at a compound annual growth rate of 12%, CGAP reports.

"The sheer scale of international remittance flows speaks to the potential for development impact," CCAP wrote. And for greater financial inclusion.

The report - International Remittances and Branchless Banking: Emerging Models - was released last week. It is the third in a series examining new and creative models for facilitating affordable, accessible transparent remittance services. The bottom line: innovations abound (think mobile wallets), leading to increasing deployments,but transaction volumes and revenues need to grow.

"Are international remittances through branchless banking helping enable access to a range of financial services for the unbanked?" the report asks. Its conclusion:"not yet."

Monday, July 15, 2013

Blow Back Over Payroll Cards Reaches Washington

The blow back over payroll cards just became heftier. An influential group of U.S. Senators wants federal investigations into fees and practices associated with these reloadable prepaid debit cards that have become a popular way for employers to cut payroll costs.

In a letter addressed to Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), the Senators asked the consumer watchdog agency to render an opinion on whether employers who require employees to accept pay via a prepaid debit card are in violation of Regulation E.

Sunday, July 7, 2013

Employers Face Blowback Over Payroll Cards

Reloadable prepaid debit cards are becoming bank accounts for a new generation of consumers. These consumers are younger, tech-savvy, and they want anytime, anyplace access to their accounts. They are not necessarily unbankable. Many say they just don't like fees and policies. Now some of that blow back is being directed at nonbanks.

According to a July 3 article appearing in the American Banker, Green Dot Corp. is coming under fire for placing long funds availability holds on personal checks deposited electronically to GoBank.

Moble Phone App GoBank