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Is Your Business Able to Keep up with Change?

dPoint — Thu, 03 Nov 2011 15:32:00 +0000

We had a great time at this year’s FiSCA show in Orlando. We enjoyed demonstrating dPoint – Point of Sale System’s features, played some games and gave out some prizes. We also had some good conversations and spent quite a bit of time listening to comments and concerns about all that is happening in the industry.

In a recent Forbes article, we found that the underbanked spent $45B on financial services last year. Interestingly enough, check cashing was down 5%. Consumer demands are changing, therefore product offerings are changing, and we all know regulations are certainly up in the air. This means that your point of sale solution must be flexible to allow you to stay current with these changes. We are happy to know that we’ve created a program that is relevant in these times. Contact us today to learn more about what dPoint has to offer your financial services business!

Heading to this year’s FiSCA show in Orlando!

dPoint — Wed, 26 Oct 2011 20:08:35 +0000

We’re packing up and heading to the FiSCA Annual Conference and Expo in Orlando! We’re looking forward to meeting with many of the nation’s financial service center providers. For more on this event, check out details on the FiSCA website here. We look forward to seeing you there! Check us out at Booth 314 to learn a little about dPoint Point of Sale System and for a chance to win $500 and other prizes; we’ll even be holding a drawing for an iPad2! See you in Florida!

Banks Losing Customers to Check Cashers

dPoint — Mon, 24 Oct 2011 16:04:36 +0000

Non-bank financial service organizations such as check cashing stores are expected to see an increase in visitors as more and more customers are leaving big banks. A recent study shows that hidden and unexpected bank fees, an increase in liquidity and product offerings continue to be a large part of why many are utilizing check cashing facilities rather than large banks. For more on the story, you can access the original article here.

Credit Unions Setting Sights on Underbanked/Unbanked

dPoint — Thu, 20 Oct 2011 14:09:43 +0000

Many credit unions are now actively trying to capture customers that are considering leaving big banks due to new fees and reduced number of free services (based on the financial regulatory changes recently introduced). But, they aren’t stopping there. More and more credit unions are changing their strategies to now include the underbanked/unbanked into their customer base. For more on this story, check out the original article found here. Will this increase competition in the underbanked/unbanked sector and if so, will it affect the payday loan/ check cashing industry? Time will tell!

Consumers Should Expect Increased Banking Fees and Reduced Free Services

dPoint — Thu, 29 Sep 2011 15:14:27 +0000

Consumers should expect to start seeing increased fees and less free services at their banks as the industry scrambles to offset their losses due to reduced interchange fees. Banks are likely to begin reducing or eliminating many programs consumers have come to expect such as free checking, free debit card usage, debit card rewards programs, and more. With these increased costs and reduced incentives it is possible that the number of “unbanked” consumers will increase. For more information, check out the original article found here.

Some suggest the U.S. Post Office should focus on banking the unbanked

dPoint — Mon, 26 Sep 2011 13:31:31 +0000

It seems more and more people are grasping that there is certainly business to be found when catering to the unbanked and underbanked population. Big retailers such as Wal-Mart have started playing in this arena with their financial services kiosks and even large banks are offering payday loan options.

Per Matthew DeBoard, in a recent blog posted on Southern California Public Radio’s website, “In a city like Los Angeles, providing basic financial services to unbanked and underbanked Latinos who already use the post office to obtain things like money orders could open up a useful new revenue stream.” For more on this story, click the link here.

Consumer Financial Protection Bureau to Regulate Farmville??

dPoint — Wed, 24 Aug 2011 16:09:12 +0000

The American Bankers Association has written a letter to the Consumer Financial Protection Bureau, requesting that the new bureau consider regulating virtual currencies, such as those found on websites like as FarmVille and Second Life. For the full story, click … Continue reading →

More Organizations Starting to Reach Out to Underbanked Individuals

dPoint — Mon, 22 Aug 2011 17:41:39 +0000

More and more companies are starting to provide check cashing and other financial services typically offered by alternative financial services providers to under/non banked consumers. Wal-Mart has joined the financial services game with their new money service kiosks and even regular banks are starting to take part. Citi Community Development and the Center for Community Self-Help (Self-Help) have joined together to offer a new micro branch concept that is a “check-casher/credit union hybrid model that has the look and feel of a check cashing business but provides responsible financial products and services that are tailored for unbanked individuals.” For more on this story, you can find the original article here.

Will Wal-Mart’s Expansion into Check Cashing Impact Existing Lenders and Will They Fall Under the Same Regulations?

dPoint — Fri, 12 Aug 2011 14:40:46 +0000

With Wal-Mart’s low prices and high convenience factor, many lenders (traditional and not) are concerned as the retail giant expands their financial services offerings to include check cashing. With this fear comes the desire for Wal-Mart to be under the … Continue reading →

Will ZestCash be significant competition for Payday Loans?

dPoint — Thu, 21 Jul 2011 14:10:57 +0000

ZestCash launched last fall and has been focusing on booking loans in four states thus far: Missouri, Utah, Idaho and South Dakota. However, despite being limited to 4 states, they have been doubling the loans offered each month and are already achieving a default rate that is better than most payday loan companies.

ZestCash is a next generation loan-service for the underbanked. They use a data-driven approach to offering short-term loans of up to $800 and their fees that can be almost half that of traditional pay day loans.

The company, led by former Google CIO Douglas Merrill, has recently received $8 million in debt financing that will go toward offering more loans to customers. They are attempting to differentiate themselves to the market with the following (per ZestCash’s website):

Our loans are up to 50% less expensive – ZestCash loans are usually much less expensive than most payday loans – as much as 50% less expensive! And, if there’s ever a reason you can’t make a payment, we will work with you to get back on track.
You make small payments over time – Normally, payday loans force you to pay everything back at once. If you can’t pay it all back, they will often renew the loan, making you pay extra fees. ZestCash loans are easy to pay off. You don’t pay the whole thing back in one payment; instead, you pay the loan back in small chunks over time, which is a lot more practical for most people.
You set your own payment – We realize that what’s “affordable” is different for everyone. This is why we let each person decide their own payment amount.”

Do you expect this new entrant to affect the payday loan market?

You can read more about ZestCash here and here.