Banking to the 

Future Financial 

Mainstream

Betsy Flynn

President/CEO

Community Financial 

Services Bank

1
Who are Unbanked and Underbanked?

 Unbanked: No checking or savings account.

 Underbanked: Have an account, but 

continues to rely on alternative financial 

services, like check-cashing services, payday 

loans, rent-to-own agreements or pawn 

shops.

2
National Statistics on Unbanked and 

Underbanked

 7.7% of U.S. households are unbanked

 17.9% of U.S. households are underbanked

 43% of households with a yearly income below 

$30,000 are either unbanked or underbanked

 54% of black households and 43% of Hispanic 

households are unbanked or underbanked, 

compared to only 18% of white households

3
Unbanked and Underbanked in 

Kentucky

 11.9% of households in Kentucky are 

unbanked

 23.7% of households in Kentucky are 

underbanked

4
Unbanked and Underbanked in 

Marshall County

 8.7% of households in Marshall County

are unbanked

 18.8% of households in Marshall County

are underbanked

5
How to Reach Unbanked and 

Underbanked?

6
How to Reach Unbanked?

 Mobile Websites and Devices

 Mobile Payments

 Checking accounts that have varied rewards

 ATM Refunds

 Rewards for Debit Card Usage

 Marketing towards International 

Demographics

7
How to Reach Underbanked?

 Extended Mobile Services

 Varied Payment Options

 Free/No Minimum Balance Checking/Savings 

with Debit Card Access

 Second chance accounts

 Grass roots campaigns

8
Reaching Unbanked and 

Underbanked Through 

Technology 

9
Reaching Unbanked and Underbanked 

Through Mobile

0%

20%

40%

60%

80%

$100M or Less $100M to

$250M

$250M to

$500M

More Than

$500M

Banks with Mobile Banking

Yes No, But Plan to Within 24 Months No Interest

10
Do you plan to offer Mobile Banking?

15%

47%

38%

Yes No, but plan to within 24 months No, not planning to

11
Reaching Unbanked and Underbanked 

Through Mobile

0% 20% 40% 60% 80% 100%

Downloadable

App

SMS/Text

Message

Mobile Web

Method of Mobile Banking

12
Mobile Payments

26%

56%

18%

23%

51%

27%

10%

55%

35%

6%

28%

66%

0% 20% 40% 60% 80%

Currently offer

Plan to offer

before 2013

Not planning to

offer before

2013

Over $500

million

$251 - $500

million

$101 - $250

million

13
Mobile Payments

85.1%

40.4%

4.3%

0.0%

0% 20% 40% 60% 80% 100%

Mobile web payments (WAP)

SMS based/text message payments

Other:

Contactless NFC (Near Field

Communication)

What type of mobile payments do you support?

14
Mobile Payments

50%

75%

15%

100%

33%

87%

67%

73%

0% 20% 40% 60% 80%100%

SMS based/text

message payments

Mobile web

payments

Over $500 million

$251 - $500 million

$101 - $250 million

Under $100 million

15
Emerging Payment Products

14.0%

25.2%

27.4%

48.8%

69.6%

0% 10%20%30%40%50%60%70%80%

Mobile payments

Consumer RDC

Electronic P2P payments

Prepaid cards

Consumer international payments

Currently Offer

16
Emerging Payment Products

47.30%

33.40%

20.70%

13.80%

5.10%

0% 10% 20% 30% 40% 50%

Mobile payments

Electronic P2P payments

Consumer RDC

Prepaid cards

Consumer international payments

Plan to offer before 2013

17
Emerging Payment Products

18
CFSB Current Actions to Reach 

Unbanked and Underbanked

19
Mobile Technology

0% 20% 40% 60% 80% 100%

Online Users

Online Acive

Bill Pay Users

Bill Pay Active

Online Banking and Bill Pay Users

2009 2010 2011

Online Active

20
Debit Card Transactions

PIN (Debit) NON-PIN (Credit)

2009 – 587,967 2009 – 1,162,557

2010 – 690,323 2010 – 1,340,548

2011 – 767,152 2011 – 1,532,948

21
ATM Transactions

On-Us Transactions Foreign Transactions

2009 – 138,194 2009 – 20,503

2010 – 144,630 2010 – 19,384

2011 – 154,055 2011 – 22,413

22
Mobile Banking

 Live November 1, 2011

 912 current users

23
Future Goals to Reach Unbanked 

and Underbanked

24
Mobile Applications

 Mobile Website

 Mobile Remote Deposit

 Mobile App for Merchant to Process Credit 

Cards

 Mobile Online Financial Management Alerts

25
New Website

 Online Loan Payment Option for Credit/Debit 

Cards

 New Website Translation in Spanish

 Online Account Opening

 Live Chat with Call Center Staff

 Online Financial Management Tool

26
International Customer Base

 Website translation in Spanish

 Translated brochures

 Student accounts tailored to International 

students at Murray State University

 Bilingual Call Center team member

27
Banking Centers

 Relationship Banking

 International Communication Capabilities

 Video Conferencing

 Digital Media

28
Information gathered from:

Bank On – joinbankon.org 

2010 ICBA Technology Survey

2011 ICBA Payments Survey

CFSB Data March 2012

29