Presentation to 

The Federal Deposit Insurance Corporation 

Advisory Committee on Economic Inclusion 

Preliminary Reading 

for 

October 24, 2007 

Presentation 

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Mission Statement 

Introduction:

FDIC’s Advisory Committee on Economic Inclusion (ComE-IN) was created to research, 

review and determine best ways to address the financial needs of low to moderate income 

consumers, those often perceived as under-served or un-served by the traditional financial 

services community. The stated mission of the Advisory Committee is an admirable one. 

However, the deliberations of the committee seem to take a course, or direction, which 

raises two questionable and erroneous assumptions: 

1. That the services currently being provided are inadequate or unacceptable. 

2. That there is a belief in many quarters that the banking industry holds the 

 answer in providing and enhancing those services. 

It is submitted that these limited viewpoints do not serve this segment of the population 

well, evidences a lack of awareness of needs and wants of the population, nor will help in 

creating the most effective programs to address the objectives of this Advisory 

Committee. 

Through its presentation before the Advisory Committee, the Financial Services Centers 

of America will seek to dispel the myths about this consumer population, illustrate why 

“banking” is not the only choice or solution for financial issues facing these consumers, 

and outline the most direct way of reaching these consumers – through the Financial 

Service Centers already serving this market. 

Only through a true understanding of this consumer population, its financial patterns and 

its actual needs, can the Advisory Committee effectively create, propose and support 

solutions to the concerns it seeks to address. That must include a thorough knowledge of 

the products and services that this consumer already uses to manage their personal and 

family finances. Additionally, there needs to be an awareness and knowledge about the 

dynamic and innovative industry already servicing the consumer base. 

FiSCA, which represents this industry, intends to present statistics and data about the 

consumer, the products and services on which they currently depend, the size and scope 

of the Financial Services industry that serves them, and make specific recommendations 

for the Advisory Committee and the FDIC to consider as it seeks to achieve its 

objectives. Through the decades of community presence, the experience in providing a 

variety of products and services and the thousands of stores and outlets operated by 

Financial Service Centers in this nation, we provide a direct link and a vital resource to 

the Advisory Committee in reaching and servicing this consumer base. In partnership, we 

offer these resources to the Advisory Committee in not only developing solutions, but in 

implementing programs to address this market. 

In brief, our mission will include: 
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Mission of Presentation Before FDIC ComE-IN:

9 Educate the Committee and the FDIC about the Consumer Market They Seek to 

Reach and the Services that Already Exist: This consumer base already has access to 

vital financial services that are provided directly by thousands of centers nationwide. 

These Financial Service Centers comprise a sophisticated and innovative industry that 

is regulated in 38 states and that meet the needs for millions of consumers each year. 

For 20 years, FiSCA has been the national association representing these centers – 

and, as such, provides a valuable resource and even a direct solution. 

9 Outline How FiSCA Provides a Gateway to this Consumer Base: Financial Service 

Centers already have direct relationships and links to the consumer market that this 

Committee has targeted. As such, FiSCA and FSCs provide the most direct 

opportunity to reach and engage these consumers through programs that the 

Committee may seek to create. 

9 Underscore why a partnership with FiSCA, as Opposed to Reliance on Banks 

Alone is the Most Effective Avenue: FSCs operate directly within the communities 

where this consumer lives and works, providing immediate access to services and 

other innovative solutions. Even where banks service these communities, consumers 

often choose relationships with FSCs because of better hours, they are more 

comfortable with these centers and the available products and services are more 

important for their financial transactions. Through this existing relationship, FSCs 

provide a direct conduit to this consumer base and could serve as a bridge to bank 

services when it is appropriate to the consumers’ financial needs. 

9 Present Opportunities for the Committee to More Effectively Achieve its Objectives:

Our knowledge of the market and ability to provide services, our resources, our 

technological expertise, and our direct access to this market not only provide 

immediate opportunities to serve this consumer base, it allows the Committee to be 

visionary and innovative in its solutions – allowing the Committee to expand its 

achievements well beyond any opportunity through banks. 

9 Propose Innovative Solutions that will Assist this Committee in its Objectives:

FiSCA intends to present several ideas in the following areas – where we are uniquely 

positioned to assist the Committee and the FDIC

 Access to Credit 

 Financial Education 

 Creating a Financial Base Through Savings 

 Short Term Credit and Access To Small Cash Advances 

 Bank Discontinuance* 

* It should be noted that although bank discontinuance is of primary concern to the MSB 

industry, it is by no means the only issue which requires attention of those influencing 

public policy. 
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During our presentation on Wednesday, October 24, we intend to provide detailed 

information and data about this consumer market, related demographics, survey 

information about the products and services on which the consumer currently depends, 

customer satisfaction research and analysis, comparative pricing, and industry statistics 

that outline the size and scope of financial service centers in this nation. Although the 

information to be presented on that date will be within the format required, we also will 

provide written materials supporting our discussion in more detail. 

For preliminary reading prior to our presentation before the Advisory Committee, we 

have included several documents in the following categories: 

9 Financial Service Centers

 Biographies of planned presenters 

 Survey of Customers of FiSCA Member Organizations, September 2006, Cypress 

Research Group 

 2002 Document: Check Cashers Make Good Bank Customers 

 Currents – August, 2007 Issue of the Magazine Publication of FiSCA

9 Bank Discontinuance

 Testimony by Mr. Gerald Goldman, General Counsel, FiSCA, to the U.S. House 

Financial Institutions Subcommittee, June 21, 2006.