DES MOINES, Iowa – Underserved consumers, including those in the Hispanic community, are spending in excess of $29 billion per year on non-bank financial services, such as money orders, check-cashing and payday advances – meaning prepaid reloadable cards provide CUs an excellent entryway to serve this consumer segment.

That is the observation of Coopera CEO Miriam De Dios, who shared advice to CUs on how to set apart their prepaid cards in a new white paper titled, “Prepaid Reloadable Cards Are Not Created Equal.”

“Prepaid cards act as a credit union’s foot in the door to some of the most important up-and-coming markets, including members of Generation Y and the underserved,” said De Dios.

With consumer advocacy groups and the CFPB paying close attention to prepaid card programs, De Dios advised CUs to monitor the regulatory environment and to carefully choose their prepaid vendors before entering the space.

 

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