Office of the Comptroller of the Currency, US Department of the Treasury

Resources and Materials on Reaching the Unbanked

Advisory letter AL 2001-1 -- The OCC provides national banks with information on the types of
financial literacy programs that have been undertaken by banks and aspects of those programs
that have been most important to their success.

Individual Development Accounts: An Asset Building Product for Lower-Income Consumers
(PDF 582KB) (February 2005) Abstract - This edition of Insights examines Individual

Development Accounts (IDAs) as a tool for banks and other financial institutions to encourage
lower-income persons and families to save money and thus build assets for particular financial
goals. It describes why banks offer IDAs, shows how banks are involved with IDAs, and
addresses barriers to the growth of IDA products. The information presented here was obtained
from a variety of sources including financial institutions, IDA policymakers, nonprofit service
providers, and program funders. Several hundred banks participate in IDA programs which can
receive positive consideration under the Community Reinvestment Act. Appendix 1 of the
Insights paper contains a resource guide for banks considering participation in an IDA program.

Reaching Minority Markets: Community Bank Strategies (PDF 293KB) (November 2006)
Abstract: The growth of minority populations and projected increases in their buying power
provide significant opportunities for retail growth by financial institutions. This edition of Insights
examines selected strategies being used by community banks to target specific minority
markets in the United States, the impact of these strategies on bringing unbanked consumers
into the banking system, and some risks and regulatory considerations associated with each
strategy.

Payroll Cards: An Innovative Product for Reaching the Unbanked and Underbanked (PDF
248KB) (June 2005) Abstract: This edition of Insights examines the growth of payroll cards and
their potential for use by national banks to attract the nearly 10 million unbanked households
into the financial mainstream. Some employers offer this prepaid debit card to employees in
place of a check to distribute wages. Employers can lower internal costs by using the card since
it enables them to avoid the costs of producing and distributing checks, as well as dealing with
lost and stolen checks. Payroll cards can serve as an introductory financial product for
consumers who do not want to manage a checking account, but want the combined benefits of
direct deposit and a nationally branded debit card.

Individual Development Accounts: An Asset Building Product for Lower-Income Consumers
(PDF 581KB) (February 2005) Abstract: This edition of Insights examines Individual

Development Accounts (IDAs) as a tool for banks and other financial institutions to encourage
lower-income persons and families to save money and thus build assets for particular financial
goals. It describes why banks offer IDAs, shows how banks are involved with IDAs, and
addresses barriers to the growth of IDA products. The information presented here was obtained
from a variety of sources including financial institutions, IDA policymakers, nonprofit service
providers, and program funders. Several hundred banks participate in IDA programs which can
receive positive consideration under the Community Reinvestment Act. Appendix 1 of the
Insights paper contains a resource guide for banks considering participation in an IDA program.

Remittances: A Gateway to Banking for Unbanked Immigrants (PDF 229KB) (September 2004)
Abstract: This edition of Insights examines the role of banks in providing money transfer


services and reviews the goals of banks in offering these products. It describes how banks can
use these products to attract unbanked immigrants into the banking system and become
providers of a variety of financial products and services that immigrants can use. It addresses
some of the key risks and regulatory issues presented by bank involvement in these products,
as well as structural and cultural barriers to the growth of bank remittance products. Although
immigrants in the U.S. remit funds to countries throughout the world, this analysis addresses the
Mexican market because it is the largest and where banks have focused most of their attention.

The Power of Plastic: How Banks are Using Technology to Reach the Unbanked (Fall 2004)
focuses on how depository institutions are using stored value cards, the Internet, and other
technology-driven products to provide financial services to the 10 million unbanked households
in the United States. Click here for PDF version (PDF 1.5MB)

Focus on Retail Financial Services to Underserved Communities (PDF 420KB) (Fall 2000)

Methodological Issues in Surveying the Unbanked Population in Urban Areas (1998) The OCC
sponsored a survey of financial activities and attitudes to better understand why million of adults
in the United States rarely, if ever, conduct their regular financial activities, particularly savings
and transaction activities through banks. The survey solutions identified in this paper should
facilitate market research efforts to improve financial access for traditionally unbanked
individuals.

Interagency Interpretive Guidance on Providing Banking Services to Money Services
Businesses Operating in the United States (April 26, 2005) The OCC and other federal banking
agencies and the Financial Crimes Enforcement Network provide guidance to clarify further the
requirements of the Bank Secrecy Act and its implementing regulations for banking
organizations when providing banking services to money services businesses operating in the
United States.



Article Archive: Transaction Account Products Targeting the Unbanked

IDAs: An Asset Building Product for Lower Income Consumers Community Developments
Insights February 2005

IDAs: Savings Incentives to Build Wealth Community Developments Fall 2004

Individual Development Accounts Community Developments Fact Sheet

Remittances: A Gateway to Banking for Unbanked Immigrants Community Developments
Insights September 2004

How Citibank's New Services Help Consumers in the United States and Mexico Community
Developments Fall 2004

Services and Technology: CRA Considerations Community Developments Fall 2004

For Ongoing Payments, Plastic Outperforms Paper Community Developments Fall 2004

Electronic Transfer Accounts: A Great Way to Reach Unbanked Federal Benefit Recipients
Community Developments Fall 2004

Payroll Cards: An Innovative Product for Reaching the Unbanked and Underbanked Community
Developments Insights June 2005

Plastic Goes to Sea Community Developments Fall 2004

Plastic Assets: Using Store Value Cards to Build Wealth Community Developments Fall 2004

Important OCC Websites:

OCC Home Page - -_http://www.occ.treas .gov/index.htm

OCC’s Community Affairs web page - - http:/Avww.occ.treas.gov/cdd/commfoc.htm

OCC’s Financial Literacy web directory - - htto:/Avww.occ.treas.gov/cdd/finlitresdir.htm

OCC’s Community Affairs publications and resource materials - -
http://Awww.occ.treas. gov/cdd/resource.htm

OCC’s Community Affairs list service - - http://(www.occ.treas.gov/canewslistserv.htm

OCC’s HelpWithMyBank.gov web page - - Answers and Solutions for Customers of National
Banks http://www. helpwithmybank.gow/

OCC’s Community Affairs Contacts - - http:/Avww.occ.gov/cdd/contacts.htm