Fresh Ideas for an Emerging Market - s3.amazonaws.com · 2 Fresh Ideas for an Emerging Market - Highlights from the 8th Annual Underbanked Financial Services Forum Table of Contents

1 Fresh Ideas for an Emerging Market - Highlights from the 8th Annual Underbanked Financial Services Forum

Fresh Ideas for an Emerging MarketHighlights from the 8th Annual Underbanked Financial Services Forum

By Kathleen Smith Shelton, Sr. Associate, Marketing Communications


Table of Contents

Introduction ...............................................................................................................................3

ThEME 1: Our Future is in the Business of Financial health .................................................4

Spotlight: David Darnell, Co-Chief Operating Officer, Bank of America ..........5.

Spotlight: Real-Time Roundtables .........................................................................6

Spotlight: U.S. Financial Diaries .............................................................................6

ThEME 2: Providers of All Sizes are Moving to Leverage Emerging Technology .................7

Spotlight: Underbanked 101 ..................................................................................8

Spotlight: Unlocking Innovation in Regulated Markets .......................................8

ThEME 3: Data is Key to Driving Success................................................................................9

Spotlight: Brett King on the Financial Tools of the Future .................................10

ThEME 4: It’s Primetime for Prepaid .....................................................................................10

Spotlight: NetSpend/TSYS: Up Close with One of the

Biggest M&A Events in the Underbanked Market ..............................................11

Conclusion ...............................................................................................................................12

Speakers ...................................................................................................................................13

Attendees .................................................................................................................................14

Forum Partners ........................................................................................................................15.

Scenes from the Forum 2013 ..................................................................................................17

About CFSI ...............................................................................................................................18


Introduction

The Center for Financial Services Innovation (CFSI) and SourceMedia, the pub-lisher of American Banker, convened in Miami this June 5-7, 2013 to present the 8th Annual Underbanked Financial Services Forum, bringing together leaders and innovators from across the financial services industry to explore fresh ideas for meeting the needs of underserved consumers.

As developing technology and new regulations continue to spark competition and transform the marketplace, deep consumer knowledge remains the key to success for businesses across the sector. Because of this, we put the consumer at the heart of the Forum’s agenda. Sessions were organized around the basic financial needs of every consumer: to borrow, spend, save, and plan.

With over 730 bank and credit union executives, technology entrepreneurs, retail-ers, investors, regulators, nonprofit providers, and consumer advocates in attend-ance, keynotes, panels, and interactive sessions offered an unmatched diversity of perspectives and covered a wide range of topics. During these discussions, four key themes emerged:

1. Our Future is in the Business of Financial Health 2. Providers of All Sizes are Moving to Leverage Emerging Technology 3. Data is Key to Driving Success 4. It’s Primetime for Prepaid

Each of these themes fed a conference-wide conversation about the future of the industry. And, by the end of the conference, there was an overwhelming consensus that “underbanked” no longer sufficiently captures the complexity of consumer demands or the promise of an increasingly thriving marketplace. As actors across the sector work quickly to develop new ways to meet the needs of this emerging market, the industry is widening its focus. Many are pairing their work to expand access to financial products with new efforts designed to proactively contribute to consumer success.

To better reflect this broader purpose and the exciting future of this market, CFSI revealed a new name for next year’s annual conference—Emerge: The Forum on Consumer Financial Services Innovation. The pages that follow showcase the industry’s most dynamic discussions on what these themes mean for leaders and innovators across the country.

“At the end of the day, it is how we do what we do that really matters.”

Jennifer Tescher, President & CEO, CFSI

99% of attendees surveyed plan on sharing something they learned at the Forum with others.

“The problem with “underbanked” is that it’s too focused on the financial institutions a consumer does or does not use. And the term positions banking as the sole solution, when we know that the reality is much more complex. This whole conference has made that absolutely clear.”

Rob Levy, Director, Research, CFSI, and Forum Emcee


“We are all in the financial health business because that is what we should all want for our customers.” Jennifer Tescher, President & CEO, CFSI

Jennifer Tescher, President & CEO, CFSI, began the conference by challenging attendees to redefine the role of the financial services industry. Pointing to a paradigm shift seen in the healthcare industry—from

treating sickness to promoting wellness—she called on those gathered in the room to pioneer a similar transformation in the financial services sector. According to Tescher, the business of financial health demands products and services that promote healthy lifestyles and set consumers up for success. Business models must go beyond traditional performance indicators with providers succeeding when their customers do.

In a later session, “Financial Capability Impact: At the Intersection of Consumer Behavior and Innovation,” panelists Camille Busette, Assistant Director, Office of Financial Education, Division of Consumer Education and Engagement, Consumer Financial Protection Bureau (CFPB); J. Michael Collins, Faculty Director, Center for Financial Security, University of Wisconsin-Madison; José Quiñonez, Executive Director, Mission Asset Fund; and Daria Sheehan, Senior Program Officer, Citi Foundation, explored the potential to transform consumer behavior by pairing financial information with products and services designed to meet their needs. Sheehan explained the importance of this idea, saying, “When consumers are matched with the right product and understand the features and how it works, everybody wins.”

During Tescher’s keynote address and other sessions throughout the conference, attendees explored what the business of financial health can look like:

n Creating a Healthy Environment: Tescher pointed to mobile remote deposit capture (mRDC) technology, which allows consumers to deposit a check by snapping a picture with a smartphone, as a potential game-changer for the underserved market. In a later session, Drew Edwards, CEO of Ingo Money (formerly Chexar Networks), discussed their work to offer immediate access to deposited funds. This and other innovations promise to expand access to critical financial services for millions.

n Instilling Healthy Habits: Tescher told the audience that nearly one in three prescriptions written are never filled. To deal with a similar issue in financial services, she highlighted companies like PayPerks and SaveUp who help consumers achieve financial stability and success by encouraging them to “take their medicine” with products designed to make financial management approachable, engaging, and fun.

n Monitoring and Tracking Health: Tescher explained, “Measurement is important because we only master what we measure. But, we have to

“The shift is about moving from a focus on the products or institutions a consumer uses or doesn’t use to the financial needs he or she has…and to the emerging innovations, ideas, and partnerships that can help meet those needs.”

Rob Levy, Director, Research, CFSI, and Forum Emcee

Theme 1:

Theme 2:

Theme 3:

Theme 4:

Our Future is in the Business of Financial Health

Americans are changing the way

they define success. A recent

American Express-commissioned

survey, titled “The LifeTwist

Study,” shows that people believe

“knowing how to spend well” is

far more important than having a

lot of money in the first place. Out

of a list of twenty-two factors that

contribute to financial success,

“having a lot of money” ranked

twentieth.


know what we’re aiming for.” Referencing the limitation of traditional credit scores, she talked about alternative measures that offer a more complete view of financial wellness. During his keynote, Brett King, Founder of Moven, offered CREDscore, an evolving metric evaluating consumers’ financial health, as a promising example of this idea.

Pointing to products already in market, lingering consumer distrust of the financial services industry, and a new generation of customers with unique priorities and demands, Tescher concluded that industry-wide reprioritization is inevitable. “We are witnessing the first signs of a sea change today,” she said. “Established providers and startups alike are beginning to adjust their work to pair profitability with consumer success. These are the business models of the future.”

In his keynote address, David Darnell, Co-Chief Operating Officer, Bank of America, examined how one of the nation’s largest banks is working to meet the needs of underserved consumers. At the core of his message was the importance of getting to know the consumer. Presenting findings from Bank of America’s recent customer research initiative, he affirmed, “We know there is a long-term profitable business in banking America, one that starts with earning back the trust of consumers and small business owners and leads to a high-quality branded experience that helps make the financial lives of our customers better everyday.”

Darnell discussed this in the context of several key factors influencing the ongoing transformation of financial services: regulation, technology, and consumer behavior. Explaining the significance of these changes, he said, “To continue serving consumers and providing reasonable return for our shareholders, we need to rethink our purpose and our role in a new economic reality. The old way of doing business will not work in this new environment.”

Spotlight: David Darnell, Co-Chief Operating Officer, Bank of America


Brand new to this year’s Forum, the Real-Time Roundtables gave participants the opportunity to have intimate small-group conversations on topics that were proposed and pitched in real time at the Forum itself. Prior to the session, over a dozen attendees gave fast-paced, 45-second pitches from the mainstage of the Forum, inviting fellow conference-goers to join them to discuss what they thought were the most timely and critical issues facing the marketplace. Discussions included “mRDC: Avoiding Duplicates” led by Roger Chinchilla, CEO, Refundo; “The Role of the CFPB: Immigration and the Financial Services Industry” led by Risa Freedman, Director, Deloitte; and “Millennials and Retirement Accounts: Don’t Cash Out!” led by Stephanie Halligan, Product Manager, Financial Education, EverFi.

The U.S. Financial Diaries is a research project, jointly conducted by NYU’s Financial Access Initiative, CFSI, and Bankable Frontier Associates, currently tracking more than 200 low- and moderate-income households in four regions and ten distinct demographic profiles over the course of a year. Collecting highly detailed data on household financial activity, the project reveals the complexities of how these individuals and families interact with the financial services industry and manage a myriad of financial challenges, such as income volatility, unexpected expenses, and reliance on help from family and friends.

During the Forum, attendees got an intimate look into the finances of three struggling American households1:

n Sam and Sarah Johnson, a hardworking Ohio couple with three daughters, are struggling to make ends meet despite having stable, full-time jobs and several part-time ones, as well.

n The Rodriguez Family, a multigenerational household, lives in a small town near San Jose, California in a four bedroom house that they own. Buttressed by regular payments from Social Security and other federal benefits, the five members of the household bring in multiple sources of income that exceed their day-to-day expenses, but one wrong decision or one unlucky event could derail this family from its upward trajectory.

n Mike Smith, a single man in his mid-50s living in a small Kentucky town, deals largely in cash and manages to save by strictly controlling how much he spends, even on groceries and medical care.

Amy Brown, Program Officer, Financial Assets at the Ford Foundation, moderated a discussion with Nancy Castillo, Manager of U.S. Financial Diaries, and Financial Diaries Principal Investigators Daryl Collins, Director of Bankable Frontier Associates, and Rachel Schneider, Senior Vice President, Insights & Analytics at CFSI. Following this discussion, the audience worked together to identify key challenges and discuss promising financial innovations for the households presented.

Leadership support for the U.S. Financial Diaries Project is provided by the Ford Foundation and the Citi Foundation, with additional support and guidance from the Omidyar Network.

Real-Time RoundtablesSpotlight:

U.S. Financial DiariesSpotlight:

1Names and details have been changed to protect the participants.


Over the past few years, the emerging financial technology industry has unleashed a new wave of products for financially underserved consumers. These innovative strategies and services are offering consumers unprecedented access and control. A new generation of customers is shifting demand, and banks of all sizes must move quickly to harness the potential of financial technology. Through a number of unique, engaging sessions, the Forum showcased the industry’s leading innovators and the cutting-edge technology they promise will revolutionize the way the industry does business:

n The expanded 3rd Annual Core Innovators Mega Challenge kicked off this year’s Forum, featuring a select group of innovators competing to be named the most promising new idea for the underserved market. Hosted by Core Innovation Capital, the investment partner of CFSI and a leading investor in financial technologies serving the Emerging Middle Class, the Mega Challenge provided a venue for ten finalists to present their products and services through live show-and-tell demos. Each was aimed at building consumers’ financial health in ways that are scalable and profitable.

Following live voting by the Forum audience, PayPerks was announced this year’s winner. PayPerks is a financial capability and rewards platform, layered as a feature on existing products, designed to encourage behaviors that are positive for financially underserved consumers and profitable for the financial institutions that serve them. PayPerks received a prize package including $10,000 cash, extensive media exposure, and a complimentary consulting session with CFSI’s Advisory Services team.

n The FinTech Face-Off proved to be an exciting addition to this year’s Forum. The competition featured four startups, Cognical, Glyph, Quippi Corporation, and SoMoLend. Each entrepreneur presented their startup ideas to three expert judges: legendary founder of Capital One and FinTech investor Nigel Morris, national financial services columnist Felix Salmon, and then-CFSI Board Chair Ellen Seidman. After pitching their concepts, innovators faced tough questions about their business models, exit strategies, consumer impact, and overall viability. The judges considered which company was most promising, taking into account the companies’ potential to improve the financial health of consumers, reach scale, and achieve profitability.

n Attendees watched a feisty debate over how best to meet consumer demand for small-dollar credit in the interactive session “Innovation in Online Lending: A Frank Discussion of Opportunities and Obstacles.” Panelists included Mary Jackson, SVP, Corporate Affairs & Chief Legislative Officer, Cash America; Alexander Karlan, Founder & CEO, FairLoan; Paul Leonard, California Director, Center for Responsible Lending; and Sasha Orloff, CEO, LendUp. The diversity of perspectives represented on the panel provided a fascinating look at what constitutes responsible lending, high-quality innovation, and the challenges facing players in this evolving market.

The 3rd Annual Core Innovators Mega Challenge Finalists:• iSend

• NexxoFinancial

• PayPerks

• Mitek

• TrustEgg,Inc.

• EnovaInternational

• FuzeNetwork

• LendUp

• OpenCoin

• SaveUp,Inc.

• Yattos.com

Theme 1:

Theme 2:

Theme 3:

Theme 4:

Providers of All Sizes are Moving to Leverage Emerging Technology

Yattos.com


First time attendees, along with others who wanted to refresh their understanding of the underbanked market, joined CFSI for Underbanked 101. This unique pre-conference event featured fresh insights from three of the market’s leading innovators and providers: Regions Bank, Progreso Financiero, and Neighborhood Trust Financial Partners. In front of a packed house, the panelists made one thing clear: a deep understanding of this unique market is key to financial innovation and consumer success.

With attendees eager to explore the implications of recent federal regulations and pending legislation, the theme of financial health offered a valuable lens through which to view the changing policy landscape. The focus on the current regulatory environment started at our pre-conference luncheon, “Policy Perspectives on Emerging Consumer Financial Services.” Jeanne Hogarth, Vice President of Policy at CFSI, was joined by Jo Ann Barefoot, Co-Chair, Treliant Risk Advisors; Justin King, Policy Director, Asset Building Program, New America Foundation; and Carter Dougherty, Consumer Finance Reporter, Bloomberg News. Offering predictions on what the market will face, their conversation centered on three key policy issues likely to impact financial services in 2013 and beyond:

n The future role of the CFPB: Dougherty offered an overview of the development of the CFPB and explored its uncertain future in the face of Director Richard Cordray’s then-pending nomination (confirmed later in the summer). Barefoot discussed the changing nature of risk management and compliance: “We are in a period where there is going to be an effort to take out the portion of the profit that is there because the customer does not understand the product.”

n Immigration reform: The panel discussed the prospect of increased demand for small-dollar credit driven by the application fees necessary to complete the process of achieving legal status in the United States. King also examined this as an opportunity to connect millions of new consumers to financial products.

n The Affordable Care Act: Barefoot looked at the implications of required payment methods for uninsured, underbanked consumers. HHS guidelines issued over the summer incorporated multiple forms of payment, including prepaid debit cards, cashier’s checks and money orders, as well as paper checks and bank-account transfers.

For these policy issues and others, many argued for financial services regulation that serves a dual purpose: ensuring quality and consumer protection without restricting access. Barefoot explained, saying, “The critical shift in the regulatory process is from an old-style rules-based process to a principles-based approach to regulation.”

From left to right, Darren Easton, Manager, Advisory Services, CFSI, moderating the discussion between panelists Bill Simpson, SVP, Head of Now Banking, Regions Bank; Tracy Jackson, Vice President, Consumer Lending Product Management, Regions Bank; Justine Zinkin, CEO, Neighborhood Trust; and Raul Vazquez, CEO, Progreso Financiero

Unlocking Innovation in Regulated Markets

“The reality is that banks don’t win if the customer loses.”

Raj Date, Former Deputy Director, Consumer Financial Protection Bureau (CFPB), and Managing Partner, Fenway Summer

Spotlight: Underbanked 101

Spotlight:


Regulation for both access and quality can be designed to spur innovation. During his keynote, Raj Date, Former Deputy Director, CFPB, and Managing Partner, Fenway Summer, emphasized the need for financial regulation that weeds out “bad ideas,” without sacrificing the productive ideas that lead to profitable and sustainable innovations. “I would not focus on taming the ‘wild west’ of financial services providers as much as I would prioritize promoting innovation and nimbleness in the banking sector,” he said.

Industry innovators are focusing on the promise of the unprecedented volume of data available today. At the conference, many explored the important ways data can empower consumers to take control of their financial lives:

n Data can enable consumers to monitor and make sense of their financial health by illuminating their financial behavior.

n This knowledge can be leveraged to help consumers set goals, find products that meet their individual needs, and improve their financial decision-making.

Discussions at the Forum emphasized the increasing appeal this control holds for consumers, particularly the millennial generation. A growing number of providers are also harnessing alternative data to unlock access to credit for large segments of traditionally underserved consumers. Conversations at the conference centered around data’s impact on credit risk evaluation and lending. Sarah Davies, SVP, Product Management, Research and Analytics, VantageScore Solutions, LLC, added to this conversation by looking at data’s ability to drive financial inclusion. For example, bill payments, like utilities and rent, have long been touted by CFSI and others as critical to filling gaps in traditional risk scoring models. Companies like Sociogramics and L2C talked about their efforts to expand this capability further by including social media and other indicators of ability to pay in their innovative models.

As these and other companies look for ways to examine a more complete and accurate picture of consumers, we will continue to explore the potential that these new, expanding data streams hold for underserved consumers.

“Analytics around digital footprints, such as social data, help paint a more accurate picture of who the consumer is.”

Eric King, CEO, Sociogramics

“To give someone a credit score in our nation is akin to giving them a key to open doors.”

Raul Vazquez, CEO, Progreso Financiero

Theme 1:

Theme 2:

Theme 3:

Theme 4:

Data is Key to Driving Success


In his keynote address, “Building Financial Wellness One Smartphone at a Time,” Brett King, Founder of Moven, compared the sheer volume of information and data being generated today to “trying to drink water from a fire hydrant.” But, this wealth of information, King explained, promises to give consumers choice. By pairing this knowledge with access to high-quality tools and services, King contended that we could solve the problem of financial inclusion and drive improved consumer financial health.

King presented smartphone technology as the key to expanding access and empowering consumers to take control of their financial lives. To illustrate this point, he described a consumer who walks into a shoe store or an electronics shop. Before, the only feedback this consumer would get on his financial decision-making was a declined card or an overdraft fee. Instead, Moven offers consumers real-time cues based on transactions and spending patterns. The consumer can see, in the palm of his hand, whether buying that new pair of shoes or TV means paying his rent late.

In conjunction with King’s keynote, Moven announced its Compass Commitment, a public pledge to a specific, measurable, high-impact initiative to demonstrate the application and adoption of CFSI’s Compass Principles. Moven committeed to helping 50,000 customers—including at least 1,000 low-income and underbanked—increase their savings by at least five percent.

As the prepaid market matures, product design, technology, and consumer demand are transforming the consumer-banking relationship and leading to a shift in traditional business models. A number of speakers discussed the need to move away from viewing prepaid as just a first step in a “graduation strategy” and instead leverage prepaid as an important component in a full suite of products. In fact, the rising popularity of prepaid had many at the conference agreeing that prepaid products are now mainstream.

n During a keynote session, Jon Wilk, Head of Product Marketing at JPMorgan Chase, explained the role of the Chase Liquid prepaid card in allowing the company to offer a range of high-quality products to every consumer segment. Emphasizing the need for product design to be informed by consumer demand, he added, “We’re really leveraging the strengths of our branches and brand to deliver value to Liquid users.”

n Alpesh Chokshi, President of Global Payment Options at American Express, added to this with insight from the success of the BlueBird card: “We’ve added checks because our customers live in the real world.”

This theme was expanded on by Drew Edwards, CEO of Ingo (formerly Chexar Networks); Lisa McFarland, Head of Consumer Prepaid Products at Visa Inc.; and Patrice Peyret, CEO of Banking Up. In their session “Mobile Remote Deposit

“We don’t need financial education. We need better tools.”

Brett King, Founder, Moven

Theme 1:

Theme 2:

Theme 3:

Theme 4: It’s Primetime for Prepaid

Brett King on the Financial Tools of the FutureSpotlight:


Capture: The Present and the Future,” they explored related aspects of consumer demand like fast, convenient access to funds. The panelists described the way their companies are working to meet this demand. For example, Ingo Money enables consumers to deposit checks directly onto prepaid cards through their smartphones. The panelists emphasized the ways mRDC has streamlined the process of turning checks into currency and why it appeals to many consumers, including those who want control over their finances but struggle with income volatility.

In one of their first public discussions on the acquisition of NetSpend Corporation by TSYS (completed in July 2013), top executives from the two companies addressed the Forum.

As general purpose reloadable (GPR) prepaid cards are allowing consumers to pay their bills, manage their checking and savings accounts, and access other financial tools, this merger will provide financially underserved consumers access to a larger network of financial payment options and money management tools. “Payments should revolve around people, not the other way around,” said Paul Bridgewater, Group Executive, Global Product, TSYS. Dan Henry, CEO, NetSpend Corporation, offered an example of high-quality product design that meets the specific needs of the underserved consumer segment: “Wireless alerts are an immediate way to provide the customer with peace of mind.”

NetSpend provides GPRs and other financial services which empower financially underserved consumers with the convenience and security to be self-banked. As a leading provider of GPRs, they have enabled more than seven million consumers to make purchases, pay bills, and manage their money without a credit history or traditional bank account.

TSYS is one of the largest global payment processors, supporting financial institutions, businesses, and governments in more than eighty countries. They provide merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, and more.

NetSpend/TSYS: Up Close with One of the Biggest M&A Events in the Underbanked Market

Spotlight:


Conclusion

As the impacts of the Forum’s key themes were explored, the concept of financial health resonated. Tescher wrapped up her thoughts, saying, “Once we get past the analogy of financial health, the most important thing we have to do is define and measure it. I believe the Compass principles are the launching point for this discussion.”

The Compass Principles—Embrace Inclusion, Build Trust, Promote Success, and Create

Opportunity—are guidelines for the financial services industry. They offer standards of excellence for the design and delivery of the basic tools people use to manage their daily financial lives. These Principles and the efforts of those we heard from at the conference speak to an increasingly vital marketplace that is worthy of attention and investment. Offering the Principles as both a catalyst and guide, Jennifer closed the conference with a final challenge: “We need more of you to help develop the business models of the future.”

In this spirit, we invite you to join the conversation next year at Emerge: The Forum on Consumer Financial Services Innovation, between June 4-6, 2014 in Los Angeles, California. We believe this new name opens horizons in the ongoing debate over how best to serve the consumer. It reflects our vision of a dynamic marketplace driven by technological innovation. It addresses the shifting relationship between providers and consumers and acknowledges that banking is no longer the sole solution. With this name, we invite new voices to join the discussion as we continue to explore the ever-changing landscape of the financial services industry.

“The ideas described in the Compass Principles provide the road map for a successful banking business based on shared success and long-term relationships.”

David Darnell, Co-Chief Operating Officer, Bank of America


Speakers

Brett Adams, Lead, US Prepaid Products, MASTERCARD WORLDWIDE

Anil Aggarwal, Founder and Chairman, MONEY2020

Rebecca Ahlers, Senior Vice President, Emerging Payments Strategy, U.S. BANK

Michael Aleles, Founder and Chief Executive, QUIPPI CORPORATION

Dave Alvarez, Chief Executive, NEXXO FINANCIAL CORPORATION

Jo Ann Barefoot, Co-Chair, TRELIANT RISK ADVISORS

Roberto Bargagli, Chief Executive and Co-Founder, TRELIANT RISK ADVISORS

Navin Bathija, Founder and Chief Executive, NEO FINANCE

Denise Belser, Principal Associate, Family Economic Success, NATIONAL LEAGUE OF CITIES

Chris Bishko, Investment Director, OMIDYAR NETWORK

Jeffrey Brice, Chief Executive, TRUSTEGG

Paul Bridgewater, Group Executive, Global Product, TSYS

Karen Carlson, FinCapDev Finalist, FINANCIAL FOREST

Nancy Castillo, Research Coordinator, U.S. Financial Diaries, CENTER FOR FINANCIAL SERVICES INNOVATION

Sarah Chenven, Director, CREDIT BUILDERS ALLIANCE

Alpesh Chokshi, President, Global Payment Options, AMERICAN EXPRESS

Tal Clark, Vice President, Prepaid and Advanced Analytics Solutions, FIRST DATA

J. Michael Collins, Faculty Director, UNIVERSITY OF WISCONSIN, CENTER FOR FINANCIAL SECURITY

Daryl Collins, Director, Bankable Frontier Associates

Michael Daly, Director, BANK OF AMERICA

David Darnell, Chief Operating Officer, BANK OF AMERICA

Raj Date, Managing Partner, FENWAY SUMMER, LLC

Arlyn Davich, Chief Executive, PAYPERKS

Sarah Davies, Senior Vice President, Analytics and Product Management, VANTAGESCORE SOLUTIONS, LLC

Paul DeSaulniers, Product Management Director, EXPERIAN

Randy Dotemoto, President, KINECTA ALTERNATIVE FINANCIAL SOLUTIONS

Carter Dougherty, Consumer Finance Reporter, BLOOMBERG

Joe Duran, National Program Director, MONEYTHINK

Darren Easton, Manager, Advisory Services, CENTER FOR FINANCIAL SERVICES INNOVATION

Drew Edwards, Chief Executive, CHEXAR NETWORKS, INC.

Adam Erlebacher, Vice President, Operations, SIMPLE

Imani Farley, CollegeSet Project Manager, JUMA VENTURES

Lex Fridman, FinCapDev Finalist, SHOULD I BUY THIS?

Todd Fuller, Vice President, Finance and Marketing, SELF-HELP FEDERAL CREDIT UNION

Kimberly Gartner, Senior Vice President, Advisory Services, CENTER FOR FINANCIAL SERVICES INNOVATION

Sarah Gordon, Vice President, Advisory Services and Non-Profit Investment, CENTER FOR FINANCIAL SERVICES INNOVATION

Priya haji, Chief Executive and Co-Founder, SAVEUP

Jayson halladay, Chief Executive and Co-Founder, PIGGYMOJO

Mike harris, Managing Partner, Core Innovation Capital

Dan henry, Chief Executive, NETSPEND CORPORATION

Jeanne hogarth, Vice President, Policy, CENTER FOR FINANCIAL SERVICES INNOVATION

Mary Jackson, Senior Vice President, Corporate Affairs and Chief Legislative Officer, CASH AMERICA

Tracy Jackson, Vice President and Senior Product Manager, Ready Advance, REGIONS BANK

Alexander Karlan, President and Chief Executive, FAIRLOAN

Justin King, Federal Policy Liaison, Asset Building Program, NEW AMERICA FOUNDATION

Thaddeus King, Senior Associate, Safe Checking in the Electronic Age, PEW CHARITABLE TRUSTS

Eric King, Vice President, SOCIOGRAMICS

Brett King, Founder, MOVEN

Stephanie Klein, Director of Consumer Lending, NetCredit, ENOVA INTERNATIONAL

Candace Klein, Founder and Chief Executive, SOMOLEND

Ben Knelman, Founder and Chief Executive, JUNTOS FINANZAS

Steven LaBella, President and Chief Executive, iSENDONLINE

Chris Larsen, Chief Executive, RIPPLE

Paul Leonard, California Director, CENTER FOR RESPONSIBLE LENDING

Rob Levy, Vice President, Business Design, CENTER FOR FINANCIAL SERVICES INNOVATION

Kimberly Manturuk, Research Associate, CENTER FOR COMMUNITY CAPITAL, UNIVERSITY OF NORTH CAROLINA-CHAPEL HILL

Nick Maynard, Director, Innovation, DOORWAY TO DREAMS (D2D) FUND

Lisa McFarland, Head, Consumer Prepaid Products, VISA, INC.

Brandee Mchale, Chief Operating Officer, Citi Community Development

Michael Mondelli, Chief Executive, L2C, INC.

Gregory Morishige, Vice President and Senior Product Manager, Digital Channels Group, WELLS FARGO

Nigel Morris, Managing Director, QED INVESTORS

Floyd Newsum, FinCapDev Finalist, LOUD & SCHOLAR DOLLARS

Sasha Orloff, Chief Executive, LENDUP

Sean Park, Co-Founder and Executive Chairman, ANTHEMIS GROUP

Vanya Pasheva, FinCapDev Finalist, BETTER HAVES

Brenton Peck, Consultant, Advisory Services, CENTER FOR FINANCIAL SERVICES INNOVATION

Patrice Peyret, Chief Executive, PLASTYC

David Porteous, Founder and Managing Director, BANKABLE FRONTIER

Ashvin Prakash, Consultant, Advisory Services, CENTER FOR FINANCIAL SERVICES INNOVATION

Francisco Prat, FinCapDev Finalist, PLUNK

Greg M. Quarles, President, H&R Block Bank, H&R BLOCK, INC.

José Quiñonez, Executive Director, MISSION ASSET FUND

Todd Rice, Head of Lending, H&R BLOCK, INC.

Richard Rozbicki, Group Head, US Consumer Credit, MASTERCARD WORLDWIDE

Grace Salas, FinCapDev Finalist, BENJI BUDDY

Felix Salmon, Finance Blogger, THOMPSON REUTERS

Rachel Schneider, Senior Vice President, Insights & Analytics, CENTER FOR FINANCIAL SERVICES INNOVATION

Arjan Schütte, Associate Director, CORE INNOVATION CAPITAL

Ellen Seidman, Board Chair, CENTER FOR FINANCIAL SERVICES INNOVATION

Daria Sheehan, Senior Vice President, CITI FOUNDATION

Bill Simpson, Senior Vice President and Head, Now Banking, REGIONS BANK

Joshua Sledge, Manager, Non-Profit Investments, CENTER FOR FINANCIAL SERVICES INNOVATION

Jillian Spindle, Director, Development, MISSION ECONOMIC DEVELOPMENT AGENCY

Vishnu Sridharan, My Path Director, MISSION SF COMMUNITY FINANCIAL CENTER

Mike Strange, Chief Technology Officer, MITEK

Jennifer Tescher, President & Chief Executive, CENTER FOR FINANCIAL SERVICES INNOVATION

Richard Trask, FinCapDev Finalist, DOWNPAYMENT SAVER

Joshua Turnbull, Director, Consulting, CENTER FOR FINANCIAL SERVICES INNOVATION

Raul Vazquez, Chief Executive, PROGRESO FINANCIERO

Michael Vichich, Chief Executive and Co-Founder, GLYPH

Steve Wendel, Principal Scientist, HELLOWALLET

Jonathan Wilk, Head, Product and Marketing, JPMORGAN CHASE

Dave Wilkes, Founder and Chief Executive, FUZE NETWORK

Mary Wisniewski, Tech Reporter and Contributing Editor, AMERICAN BANKER & BTN

Brandon Wright, Chief Executive, COGNICAL

Shirley You, Manager, Advisory Services, CENTER FOR FINANCIAL SERVICES INNOVATION

Justine Zinkin, Chief Executive, NEIGHBORHOOD TRUST FINANCIAL PARTNERS


Attendees

AARP FoundationAbt Associates Inc.Access Personal FinanceAccionAccion Frontier InvestmentsAccion US NetworkAccion Venture LabACE Cash Express, Inc.AcxiomAdrea Rubin Marketing, Inc.Advance America, Cash Advance Centers,

Inc.Advance FinancialAdvent Financial ServicesAFS AcceptanceAllTrust NetworksAmerican Banker & BTNAmerican ExpressAmerican Prepaid VASAmerican Student AssistanceAmscot Financial, IncAnchor Funding Services, LLCAnthemis GroupArchipelaago TradingArchwayArroweye SolutionsArtemis Strategy GroupAssurance Management GroupAtlanta Life Financial Group, Inc.AtlanticusAvantCreditAztecAmerica Bank/Bancservices

InternationalBAC Credomatic NetworkBaird Holm LLPBanescoBank of AmericaBank of the WestBankable Frontier AssociatesBankingUpBaptist Health South Florida FCUBarclays Bank DelawareBarri Financial GroupBBVABenji BuddyBetter HavesBillFloat, Inc.Blackthorn Advisory GroupBloomberg NewsBluestem BrandsBMG MoneyBOK FinancialBoomBrundage Management CompanyCampaign for Better BankingCapital OneCarver Federal Savings BankCash AmericaCenter for Community Capital, University

of North Carolina-Chapel HillCenter for Digital DemocracyCenter For Economic ProgressCenter for Financial HealthCenter for Financial Services InnovationCenter for Place-Based InitiativesCenter for Responsible LendingCentris Federal Credit Union

CGI TechnologiesCharles Schwab BankChaseCheck Into Cash, Inc.CheckAltChetu, Inc.Chexar Networks, Inc.CitigroupCitizens Financial Group, Inc.ClarifiClarity Services, Inc.ClearPoint Credit Counseling SolutionsCoastal Federal Credit UnionCobis Systems CorporationCognicalCoinstarComerica BankCommerce BankCommunity Financial Services

Association Consolidated Credit CounselingConsumer Federation of AmericaConsumer Financial Protection BureauConsumers UnionContinental AdvisorsCo-opportunity, Inc.Core Innovation CapitalCorelogicCorporation for Enterprise Development Cottonwood FinancialCredAbilityCredit Builders AllianceCredit DoCreditors Bankruptcy ServiceCrediTuCricket Debt CouncelingCUNAD C SD2D FundData XDavid’s Financial CorpDC Department of Insurance Securities

and BankingDelaware Community Reinvestment

Action Council, Inc.DeloitteDiscoverDollar BankDoorways to Dreams FundDownPayment SaverDragnet Solutions, IncDragnet Solutions, Inc.Eagle Bank & TrusteCredableEmerging Market ConsultantEmerging Markets, Inc.End Point Consulting Group, LLCEnova InternationalEquifaxESL Federal Credit UnionEverFiExperianEZ Gold ExchangeFactorTrustFairLoanFarmers & Merchants BankFDIC

Federal Reserve Bank of AtlantaFederal Reserve Bank of BostonFederal Reserve Bank of St LouisFenway SummerFIELD at the Aspen InstituteFifth Third BankFifth Third Bank Greater CincinnatiFilene Research InstituteFinancial ForestFinancial TimesFirst Citrus BankFirst DataFirst Manhattan Consulting GroupFirst National Bank of TexasFISFiSCAFiservFivePoint Credit UnionFloat MoneyFlorida Public Health InstituteFoundation Bank FRA, LLCFuze NetworkGalileo ProcessingGeorgia State UniversityGlobal Lending ServicesGlyphGoodwill InternationalGoogleGraficoGrameen AmericaGranahan McCourt CapitalGreen Dot CorporationGroupo SalanasGuaranty BankH&R Block, Inc.Hallmark LoyaltyH-E-BHelloWalletHigher OneHoulihan LokeyHudson Cook, LLPHudson Valley Federal Credit Unioni2c, Inc.IBERIABANKIcommissions.ComICRID Analytics, Inc.IDologyIFCImprint CapitalInCommInnoStratXInnovations for Poverty ActionInsideMicrofinance.comInsight CardsiSendiStream Financial ServicesJPMorgan ChaseJuma VenturesJumio, Inc.Jump AssociatesJuntos FinanzasKeyBankKibooKinecta Alternative Financial SolutionsKroger Personal Finance

KSQ - E-Data SolutionsL2C, Inc.LendUpLexisNexisMasterCard WorldwideMB Financial BankMed Plus Disability Evaluations, Inc. University of Miami, Miller School of

MedicineMerger MarketMerrick BankMeta Payment SystemsMetaBankMiami HeraldMicroBilt CorporationMission Asset FundMission Economic Development AgencyMission SF Community Financial CenterMitek Systems Inc.MoneyKeyMoneythinkMorgan StanleyMovenMozidoNational Association for Latino

Community Asset Builders (NALCAB)National Council of La RazaNational Disability InstituteNational Endowment for Financial

EducationNational League of CitiesNational Pawnbrokers AssociationNational Student Clearing HouseNational Urban LeagueNeighborhood Progress Inc.Neighborhood TrustNeo FinanceNetflixNetSpend CorporationNeustarNew America FoundationNew Level CDCNew Market PartnersNewComLink, Inc.Nexis CardNexxo Financial CorporationNLH InvestmentsNYSC EuronextOfficial PaymentsOklahoma Policy InstituteOmidyar NetworkOmni American BankOne PacificCoast FoundationOnline Lenders AllianceOpenCoin, Inc.Opportunity Finance NetworkPangea Payments, Inc.PaybeforePayNearMePay-O-Matic Corp.PayPerksPayPointPayTooPeople’s Bank of AlabamaPersonaFi, Ltd.Pew Charitable TrustsPH Financial Services

Icommissions.Com

InsideMicrofinance.com


Attendees, cont.

PiggyMojoPinto American Growth FundPitney BowesPLS Financial Services, Inc.PlunkPNCPointBankPowerWalletProgreso FinancieroPSCUPTS Financial ServicesQED InvestorsQFundQuippi CorporationRAND CorporationRedstone Federal Credit UnionRefundoRegions BankRepublic BankReutersRevolutionCredit, Inc.Rise Asset DevelopmentRiteCheckRobinson + YuRockville BankSanta Barbara Tax Products GroupSantander Consumer USA

SaveUpSears Holdings CorporationSecondCurve CapitalSEEDSelf-Help Federal Credit UnionShould I Buy This?SimpleSmart MoneySocial Capital Services IncSociogramicsSoftgate SystemsSolutions for Progress, Inc.SoMoLendSovereign -Santander BankSpeedy Cash Holdings CorpSpring BankSpringleaf Financial ServicesStaley CapitalStep Up SavannahStephens, Inc.Student Achievement & Advocacy

ServicesSunrise Community BanksSunTrust BankTFG Card SolutionsThe Aspen InstituteThe Bancorp

The Bray Law Firm, LLCThe Comprehensive CompaniesThe Financial ClinicThe Ford FoundationThe Intersect FundThe Leadership Conference on Civil &

Human RightsThe New SchoolThe PEW Charitable TrustsThe RLJ CompaniesThe Washington PostThink FinanceTIO Networks Transamerica Life & ProtectionTransunionTreliant Risk AdvisorsTrustEggTrustFactorsTSYSTulsa National BankTurner Acceptance Corp.Twin Cities Habitat for HumanityU.S. BankUMB BankUnidos Financial Services, Inc.UniRush, LLCUniversity of Wisconsin-Madison

Urban Trust BankUS Department of the TreasuryVALID SystemsVancityVantageScore Solutions, LLCVentajaVeterans United Home LoansVictory Park CapitalVisa, Inc.VTM, LLCW.K. Kellogg FoundationWalmartWarburg PincusWashington State TreasurerWays to Work, Inc.Wells FargoWellspring Consulting InternationalWestern UnionWipit, Inc.WK Kellogg FoundationXurpas - Latin AmericaYattosYB, Inc.ZestFinanceZoot Enterprises

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Thank You

CFSI wishes to thank our Steering Committee, session owners, speakers, sponsors, other members of the CFSI and SourceMedia teams, and the rest of our community for

making the 2013 Forum a success.

Special thanks to Shane Zimmer for his contributions to this report.


Scenes from the Forum 2013


About CFSIThe Center for Financial Services Innovation (CFSI) is the nation’s leading authority on financial services

for underserved consumers. Through insights gained by producing original research; promoting cross-sector

collaboration; advising organizations and companies by offering specialized consulting services; shaping

public policy; and investing in nonprofit organizations and start-ups, CFSI delivers a deeply interconnected

suite of services benefiting underserved consumers. Since 2004, CFSI has worked with leaders and innovators

in the business, government and nonprofit sectors to transform the financial services landscape. For more on

CFSI, go to www.cfsinnovation.com and join the conversation on Twitter @CFSInnovation.

We look forward to seeing you next year for

June 4 - 6, 2014Hyatt Century Plaza

Los Angeles, California

© l 2013 Center for Financial Services Innovation

ALL RIGHTS RESERVED. This document contains material protected under International and Federal Copyright Laws and Treaties. Any unauthorized reprint or use of this material is prohibited. No part of this document may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system without express written permission from the Center for Financial Services Innovation.

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Documents

Fresh Ideas for an Emerging Market - s3.amazonaws.com · 2 Fresh Ideas for an Emerging Market - Highlights from the 8th Annual Underbanked Financial Services Forum Table of Contents