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Bankers, nonprofit executives and others recently gathered to discuss how best to provide financial services to low-income and other underserved customers. Here is some of their advice about how to charge for prepaid cards and other products, how to create new ones and how to cope with increased regulatory scrutiny. (Image: Shutterstock)
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Build a Better Payday Loan…

"It's a real thing, and it's a real need, and it is pretty inefficiently provided today," says Raj Date, the former head of the Consumer Financial Protection Bureau, who wants to work with banks to develop a less-expensive alternative to payday loans. (Image: Bloomberg News)
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…Or Several Better Types of Loans

But for those looking to develop better short-term loans, "We don't have the solution yet. The progress we've made since last year is in beginning to pull apart the need, recognizing that it's multiple needs and it's not going to get solved by one thing, it's going to get solved by multiple things," says Jennifer Tescher, the head of the non-profit Center for Financial Services, which co-sponsored the annual Underbanked Financial Services Forum with American Banker.
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Charge Little, Disclose a Lot

Low-income and underserved bank customers "want no surprises … and they're comfortable with a flat, low monthly fee as long as that fee doesn't fluctuate based on behavior," says David Darnell, the co-chief operating officer of Bank of America.
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Woo New Customers with New Products

About 30% of customers who use the Liquid prepaid card "are never-banked or unbanked. … When you add in the underbanked, it brings it up to 48%," says Jonathan Wilk, the head of product marketing for JPMorgan Chase.
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Adapt Quickly to Changing Customer Needs

"We're just getting started. You will see us continuing to evolve and improve the product, based on customer feedback," says Alpesh Chokshi, the president of global payment options at American Express, which developed the Bluebird prepaid card with Wal-Mart Stores. (Image: Bloomberg News)
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And Always Communicate with Regulators

"Regulatory excellence is becoming a strategic imperative" for banks and other providers of consumer financial services, especially given increased oversight from the Consumer Financial Protection Bureau, says Jo Ann Barefoot, a consultant with Treliant Risk Advisors, who sits on the CFPB Consumer Advisory Board.
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