FiSCA History
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, 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 6,000 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!