DALLAS-A new study outlines the wide range in fees charged for similar products and services aimed at underserved communities. The study from the Center for Financial Services Innovation (CFSI), "One Size Does Not Fit All: A Comparison of Monthly Financial Services Spending," investigated how much prepaid cardholders spend each month to conduct essential financial transactions, compared to what they would spend if they used only a checking account or check cashing services. CFSI used the reported cash flows from underbanked individuals interviewed for an earlier study and its own estimates to calculate the total monthly financial services expenditures for a sample of consumers.
According to CFSI, the study found that expenditures for the same transactions can range from $10 per month to almost $100 per month depending on choice of product or provider. "Results indicate that there is no one financial strategy-whether based on using a traditional checking account, a prepaid card or check cashing services-that is right for all people," the study suggested. "Instead, consumers of financial services must evaluate their own cash flow needs, behaviors and preferences in order to choose the combination of products and services that is the best fit for them in terms of both price and functionality."
The results were released during the 4th Annual Underbanked Financial Services Forum here, hosted by SourceMedia, parent of Credit Union Journal.
