FiSCA Reports Record $3.7 Million Deposited into 'Virtual Savings Accounts'
Through National Savings Program
Substantial Increase in Deposits Reflects Choice of Unbanked Consumers To
Deposit Tax Refunds Into High-Interest, FDIC-Insured Savings Accounts
HACKENSACK, N.J., March 4 /PRNewswire/ -- Financial Service Centers of
America (FiSCA), the national trade association representing non-bank
neighborhood financial service providers across the country, today announced
that customers participating in its National Savings Program deposited $3.7
million into their savings accounts in January 2008, a 17% increase from the
previous high of February 2007. The National Savings Program was developed in
partnership with NetSpend Corporation of Austin, Texas, and offers a no-fee,
FDIC-insured savings account linked to NetSpend's All-Access Visa Prepaid
Card. The savings accounts currently earn interest at a 5% rate, significantly
higher than most banks or credit unions are offering today.
"While some of our customers maintain bank accounts, many are part of the
large portion of the population that is 'unbanked,'" said Bill Siegel,
Chairman, FiSCA Savings Program Committee. "They use our locations to cash
checks, wire money, make bill payments, obtain small dollar loans and more. We
partnered with NetSpend to create this program so that these customers would
have a way of saving for the future that fit into the framework of the
financial transactions they currently do at our stores. The results announced
today clearly illustrate the desire among these unbanked consumers for a
savings option. We are delighted that so many have chosen to immediately
deposit their tax refunds into this safe, secure, interest bearing savings
vehicle."
Since its inception, almost 91,000 FiSCA customers have opened "virtual"
savings accounts through the National Savings Program, a first-of-its-kind
program which allows customers to easily transfer money back and forth between
the debit card and their savings account. The savings accounts require no
minimum balance and carry no fees. The National Savings Program is available
to consumers exclusively through FiSCA-member locations.
The National Savings Program is one component of the FiSCA Consumer
Empowerment Program, a comprehensive collection of services designed to
provide FiSCA customers with financial services that may otherwise be
unavailable or unaffordable to them. "The National Savings Program illustrates
our ongoing and innovative commitment to economic inclusion for all
Americans," said Joseph Coleman, Chairman of FiSCA. "It was designed to give
consumers access to a superior savings opportunity whether they use banks or
not. Now in its third year, FiSCA remains the only organization offering such
a program in the United States today."
In addition to the National Savings Program, other elements of FiSCA's
Consumer Empowerment Program include the PRBC (Payment Reporting Builds
Credit) Credit File Building Initiative in which FiSCA members can offer the
Payment Reporting Builds Credit(R) service to their customers. PRBC is a
consumer reporting agency and repository that enables consumers and small
businesses to build a credit file and score, based on their history of making
rent, utility, phone, and other recurring bill payments that can be used to
demonstrate creditworthiness. The third element of FiSCA's Consumer
Empowerment Initiative is a financial education program, customized to reach
and meet the actual needs of financial service center customers. Together,
these programs help low- to moderate-income consumers better manage their
daily finances.
About FiSCA
Founded in 1987, FiSCA is the national trade association for more than
6,500 individual financial service centers across the United States. FiSCA
member locations are used by more than 15 million customers who conduct more
than 350 million transactions annually. The financial services provided by
FiSCA members include check cashing, money orders, money transfers, and
electronic bill payment services, automatic teller machine access, government
benefit and payroll payments, small dollar short-term loans, electronic tax
preparation, prepaid debit cards, deposit acceptance services, public
transportation fare and token sales, motor vehicle license plate and title
distribution, postage stamp sales and numerous other services. For more
information, please visit www.fisca.org.
SOURCE Financial Service Centers of America
Cynthia Vega of Financial Service Centers of America, +1-201-562-1029, or
cvega@fisca.org; or Stephen Altobelli for Financial Service Centers of
America, +1-201-964-2369, or saltobelli@mww.com
