Industry Compass

June 23, 2011

The Center for Financial Services Innovation (CFSI) is circulating a set of principles it would like U.S. financial institutions to embrace for designing and delivering basic financial tools, such as checking and savings accounts.

The group unveiled what it calls its Compass Principles during the 6th Annual Underbanked Financial Services Forum, held earlier this month in New Orleans.

"Our vision for the future is that the supply and usage of financial services that meet the principles will grow, enabling Americans to transact, save, borrow and plan in ways that improve their financial wellbeing," said Jennifer Tescher, CFSI's CEO.

The CFSI has put forth four principles to guide development and delivery of products to the underserved. They are:

1. Safety - no harm should come to users
2. Inclusion - products and services should promote genuine accessibility and convenience
3. Financial Capability - financial institutions should empower people to make wise money choices
4. Pathways - providers should promote economic upward mobility

CFSI is actively soliciting comments on the proposed Compass Principles from bankers, consumers and other interested parties. Click here to be directed to the Compass Principles Web site.

More than 800 million adults with bank accounts live on less than $5 a day

_{-Financial Access Initiative}