FiSCA History
Overview
Financial Service Centers of America (FiSCA) is a professional trade
organization representing an expanding industry of financial services
providers in local communities across the country. FiSCA was originally
established in 1987 as the National Check Cashers Association, changing
its name in 2000 to reflect the evolution of the business.
Financial service centers offer a wide array of basic financial
services, including check cashing, money transfers, money orders, bill
payments and small dollar loans such as payday advances, to millions of
Americans who choose not to use financial institutions or who cannot
meet the requirements imposed by financial institutions to maintain an
account. Additionally, those living paycheck to paycheck need
immediate access to their money and literally cannot afford to wait for
a check to clear the banking system. FSCs provide the instant
liquidity these individuals require.
Consumers appreciate the range of “pay as you go”
services available from FiSCA members, especially because they know
there will be no hidden fees or back end charges associated with their
transactions. These consumers place a very high value on the peace
of mind, flexibility and convenience offered by financial service
centers.
The industry in the U.S. is composed of approximately 13,000
neighborhood financial service centers, which conduct more than 350
million transactions each year, providing an estimated $106 billion in
various products and services to an estimated 30 million customers. In
recent years, as a broader spectrum of consumers have sought increased
financial service convenience, including flexibility of hours and faster
delivery of financial services, community-based financial service
centers have proliferated.
The Evolution of the Financial Service
Center Industry
From its inception in the 1930s, largely as a response to the banking
practices of the Depression era and changes in employer payment
practices, the financial service center industry has evolved to become
the pivotal link to the payments system for millions of Americans. Our
customers opt for convenience or reasons of personal preference to use
our locations in addition to or instead of the traditional banking
system.
Just as many consumers prefer the convenience of specialty stores to
large department stores, many consumers prefer the efficiency and
convenience of financial service centers over banks. The convenience
factor is supported by the fact that nearly 60 percent of FiSCA member
customers maintain a savings or checking account at a bank or credit
union. They prefer transacting at FiSCA member stores because of their
neighborhood locations and longer hours of operation, and the friendly
service they receive.
Emergence of a National
Association Representing Financial Service Centers
The growth of the industry was stimulated, in part, by the passage of
the Bank Deregulation Act of 1980, which removed deposit rate ceilings
and led to explicit pricing for bank deposit services. Faced with a new
banking environment, consumers demanded increased convenience and lower
costs in fulfilling their financial services needs. As a result,
community-based check cashing centers which provide more convenient
access to financial services became increasingly utilized. In 1987, the
National Check Cashers Association was established to represent the
members of this growing industry. Increases in fees charged by
traditional banks have caused many Americans to look for less costly,
fee based options that do not require customers to maintain a large
average daily balance in order to receive financial services.
To reflect the industry's growing and diversifying role, the
organization voted to change the association's name to the Financial
Service Centers of America (FiSCA), effective, January 1, 2000. Today,
FiSCA, representing more than 7,000 individual financial service centers
across the United States, is the industry’s leading voice on
legislative, regulatory and business issues. Our members range
from small companies with one location, to publicly traded national
companies with hundreds of stores.
An Evolving Industry Offering
Expanded Community Financial Services
The financial service center industry started with a simple idea.
Provide an easy way for hard working people to convert paychecks into
cash within a short walk from their homes or jobs. Over the years our
businesses have broadened to offer a wide array of financial services.
In addition to check cashing customers now count on FiSCA members for
money orders, electronic bill payments, money transfers, small dollar,
short- term loans (e.g., payday advances), ATM access, government
benefit and payroll payments, tax preparation, prepaid debit cards,
deposit acceptance services, and numerous other financial and consumer
services.
FiSCA members are continually expanding the roster of services
offered to meet customer needs. Just as the services offered by the
industry have expanded over time, the markets we serve have broadened.
Traditionally FiSCA members were concentrated in lower income
neighborhoods, serving and hiring residents of these communities. More
recently as middle income consumers have demanded more convenient
financial services, financial service centers have expanded into their
communities.
Watch the FiSCA at 20 Commemorative Video
2007 marked the 20th Anniversary of FiSCA. To mark the occasion,
FiSCA commissioned a commemorative video which was shown at the 2007
Annual Conference & Exposition. Watch the video on YouTube!
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