The Center for Financial Services Innovation has released its latest research, âOne Size Does Not Fit All: A Comparison of Monthly Financial Services Spending,â at the 4th Annual Underbanked Financial Services Forum, continuing through Wednesday in Dallas.
The paper is an investigation into how much prepaid cardholders spend each month to conduct essential financial transactions, compared to what they would spend if they used only a checking account or check cashing services. CFSI used the reported cash flows from underbanked individuals interviewed for âA Tool for Getting by or Getting Ahead? Consumersâ Views on Prepaid Cards,â published by the Center for Financial Services Innovation in March 2009, and its own estimates to calculate the total monthly financial services expenditures for a sample of consumers.
The study reveals that expenditures for the same transactions can range from $10 per month to almost $100 per month depending on choice of product or provider. Results indicate that there is no one financial strategy â whether based on using a traditional checking account, a prepaid card or check cashing services â that is right for all people. Instead, consumers of financial services must evaluate their own cash flow needs, behaviors and preferences in order to choose the combination of products and services that is the best fit for them in terms of both price and functionality.
The 4th Annual Underbanked Financial Services Forum kicks off December 1st at 4:30 p.m. with the keynote address from Yale Economics professor Dean Karlan, âTransforming U.S. Financial Services through International Lessons in Development and Behavioral Economics.â Karlan is also President of Innovations for Poverty Action (IPA), co-director of the Financial Access Initiative, a consortium created with funding from the Bill and Melinda Gates Foundation, a research fellow of the M.I.T. Jameel Poverty Action Lab, and co-Founder and President of StickK.com. In 2007, he received a Presidential Early Career Award for Scientists and Engineers, the highest honor bestowed by the United States government on outstanding scientists and engineers beginning their independent careers.
The Underbanked Financial Service Forum is the premier event for players across the financial services spectrum. Attendees get the latest information from industry experts and on-the-ground case studies from across the globe, offering the best strategies and solutions to achieve profitable growth and long-term success. The Forum also offers an exhibit hall focused on underbanked solutions and a variety of networking formats. As awareness of the potential value and demographic diversity of the underbanked market continues to grow, the Underbanked Financial Services Forum remains the single best place to learn from and connect with industry leaders transforming the financial services landscape.
Featured speakers include a wide variety of professionals and academics from across the financial services landscape: Robert A. Annibale, Global Director, Citi Microfinance, Janie Barrera, President & CEO, ACCION Texas, Bob Jones, CEO, Old National Bank, Deb Roy, Associate Professor of Media Arts and Sciences, Massachusetts Institute of Technology, Mark Troughton, President, Cards and Network, Green Dot Corporation, Peter Tufano, Sylvan C. Coleman Professor of Financial Management, Harvard Business School.
The Center for Financial Services Innovation is the nationâs leading authority on financial services for underbanked consumers. Since 2004, its programs have focused on informing, connecting, and investing â gathering enhanced intelligence, brokering and supporting productive industry relationships, and fostering best-in-class products and strategies. A non-profit affiliate of ShoreBank Corporation, CFSI works with leaders and innovators in the business, government and non-profit sectors to transform the financial services landscape.