Revolutionary Savings Program Helps Unbanked Americans

Save for the Future

FiSCA and NetSpend Introduce “All-Access” Savings Program Providing Underserved Americans Greater Access to Mainstream Financial Services

Hackensack, N.J. & Austin, Texas – Members of the Financial Service Centers of America (FiSCA) are teaming with NetSpend Corporation of Austin, Texas, to launch the All-Access National Savings Program, a first-of-its-kind savings product based on an interest-bearing, federally insured account linked to a prepaid debit card. The program is designed to reach the millions of Americans who do not have bank accounts, or who have limited relationships with traditional financial institutions.

The FiSCA and NetSpend partnership is uniquely positioned to offer easy savings-account access at the locations where a majority of unbanked and under-banked consumers conduct financial transactions. The All-Access National Savings Program will provide financial service center customers with a simple, secure and convenient savings vehicle, giving millions of these consumers the ability to create a savings fund for long-term financial empowerment.

According to figures from the U.S. Treasury, between 9 percent and 10 percent of American households do not have a bank account. These consumers, often referred to as the “unbanked,” have decided for a variety of reasons to use financial service centers and other means to conduct necessary financial transactions, such as cashing paychecks and paying bills. Figures from the U.S. Bureau of Economic Analysis show that personal savings by American consumers during the fourth quarter of 2004 was just 1.6 percent of disposable income.

“FiSCA believes a key issue behind both the unbanked and low savings rate statistics is access. We know from surveys conducted with our customers that most would use a savings product if one were available through their neighborhood financial service center,” said Gary A. Dachis, chairman of FiSCA, which has more than 5,000 member locations nationwide. “By teaming with NetSpend, FiSCA is going to help thousands of hard-working Americans build savings for their families’ futures.”

“We are very excited to launch this innovative consumer savings program with FiSCA because it means millions of un-banked Americans will now have an easy way to establish a savings fund on their own terms. The All-Access Prepaid Debit Card will help people open doors to a better future,” said Roy Sosa, president and co-founder of NetSpend, the nation’s leading marketer and processor of prepaid debit cards serving the unbanked and under-banked markets.  “This is truly an historic event because it represents a giant step forward in bringing mainstream financial services to underserved consumers.”

“NetSpend’s platform is an idea whose time has come.  It allows underserved Americans to participate in the mainstream economy.  The company is a transformative force that makes America better,” said former U.S. Senator Bill Bradley (D-New Jersey).

Bill Siegel, former FiSCA chairman and the head of FiSCA’s Savings Program Committee, said support for the program among FiSCA members and industry leaders is very strong.  “FiSCA Board members and staff have worked tirelessly to help launch this innovative savings program,” Siegel said. “We know how badly this tool is needed and what a tremendous gap it will fill in meeting the needs of our consumers and America’s unbanked and under-banked.”

The savings program will be offered for free to all new and current NetSpend prepaid debit cardholders who originate their accounts through a FiSCA member check-cashing location. There is no minimum deposit to enroll in the program, no minimum monthly balance to maintain and no monthly service fee. Cardholders can enroll in the program online at www.netspend.com or by calling 1-86-NETSPEND to link their prepaid debit card to an interest-bearing savings account. Once this happens cardholders can add funds to their savings account via free transfers from their prepaid debit card.  

Funds can be transferred conveniently between the debit card and the savings account via the Web, automated phone system, or a live customer service agent. Cardholders can also set up automatic, recurring transfers from their debit card to their savings account to encourage and facilitate easy savings. Funds in the All-Access savings accounts earn an annual percentage yield of 0.75% and are insured by the Federal Deposit Insurance Corporation (FDIC).

“We’re extremely pleased and proud of the fact that we are able to offer competitive savings rates that are higher than those of most commercial banks for this entry-level savings account,” said Carlos Garza, president of Inter National Bank, in McAllen, Texas, NetSpend’s issuing bank partner. “Every little bit helps when it comes to savings, and we want to do our part to encourage more Americans to save for the future.”

“FiSCA members serve as the link for millions of unbanked Americans to mainstream financial products and services. The launch of the All-Access National Savings Program is a logical progression in the ongoing development of our industry,” Dachis added. “Financial service centers were founded on the idea of creating access for consumers, in convenient locations and at convenient hours. We are a service business that thrives on meeting the needs of our customers.”

FiSCA and NetSpend are launching the All-Access National Savings Program through multiple kick-off events in 12 cities and a national marketing campaign that includes in-store signage at participating FiSCA member locations. “The goal of the effort is to reach as many underserved consumers as possible with news of this exciting service, which is available to them at their neighborhood financial service center,” said Rick Savard, chief executive officer of NetSpend.  “Our ultimate goal is to financially empower our customers, and this valuable savings tool is just one more step toward that end.”

About FiSCA

FiSCA, founded in 1987, is the national trade association and voice of the industry representing more than 5,000 individual financial service centers across the United States.  FiSCA members provide a wide variety of financial services and products to their communities, including check cashing, money orders, money transfers, and electronic bill payment services, automatic teller machine access, government benefit and payroll payments, deferred deposit services, electronic tax preparation, prepaid debit cards, deposit acceptance services, public transportation fare and token sales, motor vehicle license plate and title distribution, postage stamp sales and numerous other services. For more information, go to www.fisca.org.

About NetSpend Corporation

Austin, Texas-based NetSpend Corporation is the proven leader for prepaid stored value platforms, offering an end-to-end approach that is unique in the prepaid payments industry.  From customer acquisition and communication, retention, distributor integration and training, card fulfillment, portfolio and risk management, regulatory compliance, and world-class customer service, NetSpend offers a complete, end-to-end, vertically integrated product offering that powers the infrastructure for prepaid payment applications.  NetSpend’s partnerships include agency agreements with the leading companies serving the un-banked and under-banked markets, as well as strategic relationships with card issuers, EFT and payment card associations.  For more information, go to www.netspend.com.

 

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