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You Have to Save to WinLotteries, er Raffles, are Encouraging Consumer SavingsThe Doorway to Dreams (D2D) Fund wants to get more lower-income Americans to save. So it's teaming up with state credit union groups in support of prized-linked savings accounts. Call it a lottery. Call it a raffle. Either way, it's proving to be a promising model for getting the financially vulnerable to save; and for building CU assets, too. 
Federal Consumer Watchdog Eyes NonbanksPayday Lenders Top Priority; Prepaid Cards, TooThe Consumer Financial Protection Bureau (CFPB) got a chief this week, and in his first day on the job Richard Cordray let it be known that regulating payday lenders is a top priority; ditto for prepaid debit card companies. Given all the behind-the-scenes political gamesmanship over CFPB, however, it's unclear whether or not the it can wield much power long term over nonbank financial services companies. 
Is Post Office Banking in the Cards?Banking the Unbanked Might Help Financially-Strapped USPSThe U.S. Postal Service has been circling the drain, financially, for years. And recently USPS admitted the situation is worsening. Rather than shuttering offices and scaling back on delivery services, USPS could take a page from the book used by its European counterparts and add payment services to the product line up. It's an idea worthy of consideration as it could work toward resolving two pressing national issues: getting people to save and saving USPS. 
Banking on BicyclesDC Banks Partner with Bikeshare ProgramUnique partnership offers unbanked Washingtonians discounted access to a pool of shared bicycles in exchange for opening debit/credit card accounts at two local financial institutions. But the program has limited mindshare, and money may be factor. .jpg)
LA Grows Unbanked PopulationMore Households Closing than Opening AccountsMore low-income households in Los Angeles left the banking system than opened bank accounts between 2009 and 2010, despite the launch of a Bank On LA program promoting low-cost bank accounts. Most of those who closed bank accounts did so because of fees. That's the upshot of a new report by the Pew Health Group. 
Bank On Gets a Face LiftOffers Tool for Pinpointing Underbanked NeighborhoodsJoinBankOn.org is the new name given to a coaltion of local public-private initiatives that help mainstream financially underserved Americans by providing access to low-cost deposit accounts and financial literacy curricula. The new site incorporates a Research Your Community tool that community leaders and businesses can use when developing programs to mainstream unbanked and underbanked Americans. 
Fed Okays Green Dot Bank CharterGreen Dot Bank to Issue Prepaid CardsIt's another chink in the armor securing the banking industry's "payments franchise." Green Dot, a company built on serving the unbanked and underbanked (with financial support of retailing giant Walmart), now owns a bank through which it can issue cards. What, if anything, does this portend for the unbanked and underbanked?
Underserved Represent Huge OpportunityU.S. Banks Missing Out on $45 Billion Revenue PieThe Center for Financial Services Innovation and Core Innovation Capital have released a report that illustrates just how much money banks are leaving on the table by ignoring certain consumer segments. America's unbanked and underbanked generated $45 billion in fee and interest revenues, primarily for nonbank financial institutions, the report notes; and it urges banks to do more to foster upward mobility for Americans through new products and services. 
Mainstreaming America's UnbankedSome Big Banks Stepping Up to the PlateSome banks are looking anew at segment of the economy they've traditionally ignored: the poor. These banks - including large, household names like Wells Fargo - are taking cues from nonbank financial services providers and incorporating services like check cashing, money transfer and bill-payments into their product line-ups. The motivation seems to be new government pricing mandates curtailing debit card revenues. 
MFIs Reach Over 137 Million of World's PoorestLoans in 2010 Impacted Over Half a Billion IndividualsMFIs reached hundreds of millions of clients in 2010, accoridfng to a new report from Microcredit Summitt Campaign. Just released, State of MIcrocredit Summit Campaign Report 2012 details lending trends; discusses needs of the poor and threats facing microfinance initiatives around the world. 
Underbanked in AmericaOn Washington's Radar?The public dialogue over unbanked and underbanked Americans reached Washington this week. But it's unclear whether lawmakers and policymakers were listening, or if the plight of underbanked Americans has made it onto their radar. 
Subprime Cardholders, Business Loans Tied to Cards Seen GrowingIs it Deja Vu All Over Again?"Lessons learned are like bridges burned, you only need to cross them but once." This insight, penned by the late folk/rock artist Dan Fogelberg 30 years ago, would seem like sage advice in the aftermath of the subprime mortgage debacle. But recent surges in subprime cardholders and in merchant loans against card receivables suggest otherwise. 
Going Mainstream: P2P Lending American StyleGAO IDs Regulatory ChallengesCongressional watchdog agency examines person-to-person lending in the U.S.; reports on the pros and cons of current and potential regulatory approaches to this emerging market. In the end, the report may have raised more questions than it answers.
Banks Counseled to Meet the UnderservedDo they Get the Message?America's financially underserved - the unbanked as well as those Americans with tenuous relationships to mainstream providers - is a burgeoning market that banks would be foolish to leave unattended. That's the upshot of a report from the consultancy KPMG, which puts the underserved market at 88 million individuals with nearly $1.3 Trillion in combined annual incomes. The transition won't be easy, though, as it requires changing business models. 
WalMart Wants to Bank the UnderservedIn-Store Kiosks, Micro-Lending Among Latest U.S. EffortsWalMart's aspirations to own a bank thwarted in the past, the retailing giant is establishing itself as the financial services provider of choice to the 24 million-plus American households that the FDIC identifies as unbanked or underserved by traditional financial institutions. This week the mega-retailer begins rolling out MoneyCenter kiosks - ATM-like devices offering various financial services - at WalMart stores that don't already have full-service MoneyCenters. The company is also positioning to become a lender to micro-entrepreneurs through its Sam's Club superstores. 
Microfinance and ProfitsNot Mutually ExclusiveThe traditional microfinance model, its roots in developing countries where access to financial services is spotty, is being challenged in the U.S. by a new breed of financial services providers offering more than just loans to micro-businesses and consumers, alike, who have been shunned by banks. Even WalMart is tapping into the action, offering micro-loans and other services to business clients of its Sam's Club unit. No big surprise there. 
Consumer Protection Takes Center StageMicrofinance Pros Urged to Back Smart CampaignProtecting the unbanked and underserved from unscrupulous providers emerged as a central theme during the Microfinance USA conference last week in New York. An estimated 800 professionals attended the two-day event, and were urged to seize the moment to ensure that microfinance does right by consumers. 
Prepaid Cards on the Hot SeatFlorida Investigation Targets 5 CompaniesPrepaid debit cards - especially those branded by the major card companies, Visa and MasterCard - have become hugely popular among Americans. Nonbank providers often position prepaid cards as banking alternatives. Employers, financial institutions and Uncle Sam see prepaid cards (especially for payroll and benefits distribution) as a way to mainstream the unbanked and underbanked. Now the Florida Attorney General's Office wants to see if prepaid companies are bilking prepaid cardholders with hidden fees. 
Living Day to DayUnderstanding the Financial Lives of America's PoorThe Financial Access Initiative (FAI) has announced a first-of-its-kind study to understand the financial lives of low-income Americans. Promises timely and independent examination of how poor Americans manage their finances. But will findings spur banks to action? 
Microfinance in the USAEvent Looks to Ignite Market, Consumer ProtectionWith economic growth stagnating, especially on Main Street, microlending is a growing market in the U.S. The Microfinance USA conference, scheduled for later this month in New York, brings together leaders and experts in the field in hopes of charting a course for the future of microfinance here in the U.S. 
Out of the Shadows, Into the SpotlightOversight & the Microfinance SectorAfter decades of living in the shadows of mainstream banks, the microfinance sector finds itself cast in the public spotlight, especially in the developing world where the usurious tactics of unscrupulous lenders worsen the plight of the poor. The Reserve Bank of India (RBI) is taking on the problem with interest rate caps and other regulatory strictures. CGAP, meanwhile, has updated its supervisory guidelines for MFIs. 
Coming to America: Bankers Without BordersPro Bono Program Targets Main StreetGrameen Foundation is expanding its Bankers Without Borders initiative into the U.S., with collaborative help from the Association for Enterprise Opportunity. Hopes to boost outreach to low-income entrepreneurs left behind by mainstream banks. 
April is Financial Literacy MonthHelping Folks Get Smart About MoneyAmerican adults are on shaky financial ground, with only one in six expressing satisfaction with their current financial situation. What can be done to counter this situation? Improving financial literacy is a good start. So are product and delivery innovations. 
Teaching Kids to SaveBankers Challenged to Add 15,000 New AccountsThere's plenty of blame to go around, but any way you look at it Americans don't put a lot into savings accounts these days. Is there something to learn from the approaches taken to savings in less developed countries? Perhaps. 
Microinsurance: Finding a Place at the TableHalf the World as Potential Customers?The vagaries of nature, poor health and financial markets take a significant toll, especially among the poorest of the poor. But is there a market for offering insurance products to this market? Two recent reports offer some insights. 
Microloans Helped Record 128 Million Families in '09Over 600 Million Individuals ImpactedThe numbers are in: just over 128 million of the world's poorest families received microloans in 2009, according to the Microcredit Summit Campaign. That's a 16-fold increase since the Campaign began keeping track of the numbers in 1997. Meanwhile, the Campaign is looking for input for a microlender certification process. 
Grameen Bank Fights for FounderBangladesh Government Wants Yunus OutThe ironies of the situation can't escape the notice of even the most casual observer: a government headed by a 64-year-old prime minister has decried that Muhammad Yunus, the father of microfinance, is, at the age of 70, too old to continue on at Grameen Bank, the MFI he founded and with which he shared the 2006 Nobel Peace Prize. Prof. Yunus isn't buying it; nor are most board members, and much of the international community. 
New Card Fee Rules Could Swell Ranks of America's UnbankedIs Durbin Delay in the Cards?Asked to intercede in a long brewing battle between banks and retailers, Congress appears to have stuck it to the little guy. Mounting evidence suggests that a last minute addition to the federal financial reform package signed into law last year may have the unintended consequence of growing the ranks of America's unbanked. Now there's momentum building for the Fed and/or Congress to put the brakes on the so-called Durbin Amendment to the Dodd-Frank Wall Street Reform Act. 
Getting Americans to SaveAmerica Saves Week, February 20-27It's a scary proposition, but it's true: More than 1 in 4 Americans has no money saved for emergencies or even retirement. America Saves Week, which begins today, is a campaign to get banks and employers to encourage people to save. It's going to take more than a PR campaign, however, to get more Americans to stash more money in savings, especially considering the meager rates of return on bank savings accounts these days. 
BB&T to Broaden Client BasePrepaid MoneyAccount Targets UnbankedThe unbanked are not always unbankable. For many, it's a cost issue. So BB&T is opening doors for the unbanked/underbanked with a new low-cost prepaid transaction account. 
Prepaid Cards: On Course to Becoming 21st Century BanksUsage Leapfrogs as More Consumers Shun BanksPrepaid companies are beginning to resemble banks. Not content with a monoline approach to financial services, these companies are branching out, positioning themselves as online financial services supermarkets with convenient, low-cost options to established brick-and-mortar banks. 
Renters Get Help with Credit ScoresExperian Collecting Rental DataNot all renters are unbanked, but it's probably safe to say that individuals who rent are more likely than are homeowners to be unbanked or underserved. So, the credit reporting agency Experian has started collecting rental information to help better assess prospective borrowers with "thin" credit files.
Priming the Small Business Loan PumpRegulatory Jawboning is a StartSmall businesses have been among the hardest hit by tightened credit policies triggered by the recession. And the situation doesn't seem to be improving, despite regulatory jawboning and federal efforts to prime the lending pump. A forum earlier this week addressed this predicament and provided an opportunity for bank regulators to publicly support stepped-up lending to small businesses. But it's going to take more than jawboning to improve a moribund small business credit market. 
Savings as a Ticket out of PovertyYouthSave Targets 4 Countries on 3 ContinentsPoor people find it difficult to save, but not impossible, and research consistently tells us that unbanked households use a variety of informal savings instruments, from piggy banks to savings clubs. Micro-savings also can be a good, steady funding source for financial institutions. It's not an easy (or cost-effective) market need to address in today's world. YouthSave aims to help policymakers, bankers and NGOs develop and implement new savings products, with a focus on helping young people living in poverty. 
Regulators Block Tax Refund LoansTax Prep Firm Drops Loans Against Expected RefundsH&R Block axes refund anticipation loan (RAL) program after a federal regulator tells its partner bank, HSBC, to stop issuing loans tied to tax refunds. But is it really such a big deal? After all, cheap online tax-filing services and government Direct Deposit programs make for superior alternatives to these high-cost micro-loans. 
Crisis in IndiaCGAP Urges New Industry ModelsWith the microfinance sector in the Indian State of Andhra Pradesh spirling out of control, CGAP analyzes the situation there and offers suggestions for new ways to bring financial services to the world's poor.
Older Americans Dominate Unbanked HouseholdsWhat Retirement Savings?A new report from AARP suggests older Americans are more likely to be unbanked than folks under 45. It's not that these folks don't like banks; most feel they simply can't afford to use banks, AARP reports. Group urges policymakers and bankers to take more concrete steps to make bank accounts a viable option for these folks, many of whom have no way to prepare financially for retirement.
FDIC Readies Model Accounts PilotIDing Safe, Affordable Offerings that Won't Break the BankThe Federal Deposit Insurance Corporation has selected 9 banks of varying sizes and from various regions of the country to help it fine tune its ideas about basic checking and savings accounts that are safe, affordable and designed to attract those millions of Americans who currently have little or no relationship with federally-regulated financial institutions, and make it a good deal for banks, too. 
America's UnbankedAnd the Burgeoning Role of MobileTwo new initiatives have been annnounced that make it possible for Americans to use mobile phones to pay for goods and services at the point of purchase, even those who don't use banks. Either initiative could fundamentally change the way Americans make payments. Neither is being led by banks. 
Cash is King of P2P PaymentsIs Mobile Ready to Make Inroads?When it comes to payments to and from individuals, the number one choice in America and elsewhere remains cash. Electronic P2P payment options are gaining converts, slowly, but most are aimed at bank customers, not the unbanked. That's where mobile technologies come into play.
Making a Case for MFIs Serving Small SaversCGAP Asks: Is There a Business Case?The answer is yes, provided savings accounts are used in tandem with other, more profitable financial services, such as loans, remittances and insurance products, and the MFI makes good use of new and emerging technologies. 
Blueprint for Financial InclusionWSBI On Advancing Financial InclusionNew report - Financial Inclusion: How Do We Make it Happen? - offers views and proposals for making financial inclusion a reality, especially in developing countries. Urges more attention to diversity, innovation, and the balance between safety and usability. 
Visa Makes Pitch for U.S. MicrolendingContributes $1 million to Expand Kiva Lending into Gulf CoastThe credit card company contibutes $1 million to help Kiva expand support microlending in Gulf Coast states, which have been hard hit by natural and unnatural disasters, in combination with an achingly slow economic recovery. 
Prosper Reaches Million Member MilestoneThat's Larger than Population of San Francisco, Founder BoastsThe peer-to-peer lending site Prosper is now an online community of 1 million plus people, making it as large as a good-sized city. And there's plenty of anecdotaol evidence that P2P lending communities like Prosper are outperforming many more traditional investments. This begs the question: why aren't more individuals involved in this market? 
Shaping the Future of MicrofinanceMicrofinance 2.0 Offers Forum for Discussion and LearningMark your calendars for November 15-17, 2010. That's when Microfinance 2.0 takes the public discourse on microfinance to the next level. Atterndees and presenters will explore new solutions, new technologies that are being applied in microfinance and help eradicate poverty at San Francisco forum.
Financial Access Expanding in Down EconomyDeposits Up, Even as Lending Remains StagnantA new report by CGAP and the World Bank Group reveals that financial access is expanding throughout the developing world even as the effects of a prolonged recession weigh heavy on the world in general. The report also puts a number to worldwide lending to SMEs: $10 trillion. 
Insurance Makes for Good MedicineThe Connection Between Physical and Financial Well BeingFreedom from Hunger program shows that it makes sense for MFIs to offer health protection products, like special savings accounts, insurance, and even group discounts. Four-year pilot reached 1.5 million of rural poor in five countries. 
Getting Americans to the BankTreasury Pilot Targets Underserved Due Tax RefundsThe U.S. Treasury wants more Americans to open bank accounts. So it's devised a program that ties the account opening process to tax refunds. Hopes Direct Deposit offers will discourage high-cost alternatives, and also cut tens of millions of dollars in checkwriting costs. 
Mobile Payments on Regulatory RadarUniform Protections, Systemic Oversight CrucialMobile technologies support delivery capabilities that can extend the reach of financial services to the most remote corners of the globe. History has taught, however, that financial technologies left unattended can skew marketplace realties. As mobile payments grow, so, too, does the need for regulatory oversight.
Banking on AmericaTreasury, FDIC Programs Target Underserved HouseholdsThe U.S. government is sharpening its focus on financial inclusiveness. The FDIC has a pilot underway to promote basic, low-cost banking services to the poor. Meanwhile, the Treasury Department wants to create a national program that Banks On successful state and local initiatives. |
 53% of adults, worldwide, are unbanked -Financial Access Initiative |