CUNA: mobile financial services could help underbanked

first_img 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr As mobile technologies evolve and become a way for underserved populations to access financial services, the Credit Union National Association has written to the Consumer Financial Protection Bureau (CFPB) to urge continued coordination with payments regulators. The letter acknowledges that such services can help with member access to financial services, but also notes implementation costs and regulatory burdens that currently exist.“The CFPB should minimize regulatory burdens associated with offering mobile financial services, to ensure that credit unions and other providers are able continue to provide these innovative services to consumers,” reads the letter, signed by CUNA Assistant General Counsel Dennis Tsang. “The agency should also recognize that implementation costs to provide mobile services can be quite significant for credit unions and other smaller financial institutions.”A Federal Deposit Insurance Corp. white paper from April estimated that, of the underbanked and unbanked households, almost 90% had a mobile phone and 71% had a smartphone. CUNA believes that these populations could gain enhanced access to credit union services through these devices and phones.Mobile financial services offered by credit unions can include a mobile website or downloadable app and the use of text messaging to check balances, account history and transfer funds.CUNA’s 2014 Technology Spending Survey showed, that of the 200 credit unions that responded to the survey, nearly 60% offer mobile financial services and another 28% percent said they plan to do so within the next two years. continue reading »last_img read more