Drew Edwards, CEO and founder of Chexar Networks, Inc., says in this blog
posting that banks historically have been unwilling to change their product
offerings to meet the legitimate needs of the underbanked -- a massive consumer
group -- by adding services such as check cashing, money transfers, walk-up bill
payments, and prepaid Visa/MasterCard debit cards. Now, banks are growing more
and more focused on redefining their product set to meet the needs of these
consumers by offering them the services they are purchasing today at the corner
check casher or store. This change in mentality has been driven by recent
legislative changes in Washington that will significantly lower the fee income
these banks generate from deposit accounts, debit cards, and credit cards.
Forced to re-examine their fee income models, banks have spent the past year
performing internal analysis that has helped them to realize that as much as 25
percent of their current deposit account holders are actually going outside the
bank to procure these services.