NEW YORK - A community development credit union here is planning to test self-service kiosks in communities with large populations of underserved and unbanked consumers.
The pilot is being conducted by $21-million Lower East Side People’s FCU in New York City in conjunction with Tellagent, LLC, a CUSO of the $374-million Paragon FCU in Montvale, N.J.
The new self-service kiosks are being designed to meet the financial needs of unbanked consumers, by providing automated transactional services, such as check cashing, bill pay, and remittances, enabling credit unions to provide these services at much lower costs, according to the two parties.
“Over time, as acceptance of electronic kiosks becomes the normal fabric in the commerce of the unbanked, this unit could revolutionize the way financial transactions are offered and delivered to the unbanked and to the general public for that matter,” said Richard Rays, CEO of Paragon FCU.
In the initial pilot phase, Tellagent LLC will also be deploying kiosks in a number of CDCUs in New York City following introduction at the Lower East Side People’s FCU.
“Although we are in the financial center of the world, there are many people in our community who are unbanked,” said Aissatou Barry-Fall, CFO of LESPFCU, which was founded in 1986. “In fact, nearly a third of all new accounts are opened by individuals with limited or no experience with financial institutions.”
The National Federation of CDCUs said the partnership is part of its 5-year-old Community Development Partners program, which seeks to engage a broader spectrum of credit unions in the work of CDCUs There are currently 46 credit unions participating in the program.
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