Over 100 million individuals in the US are underbanked — they can not access or choose not to use traditional bank accounts and financial services. Instead, they use alternative financial services, such as check cashing services, prepaid cards, small dollar loans, remittances, and other nonbank services to meet their everyday financial needs. These alternative financial services, which may or may not be more costly than those offered by a traditional bank, are often preferable for consumers who want convenient, transparent, and easily accessible financial options. As Congress reconvenes and the effort to overhaul the financial regulatory system resumes, how do the financial services needs of underbanked consumers fit into the broader policy discussion? How can federal policies support responsible, innovative alternative financial services? Join the New America Foundation for an event that probes these questions and more. Peggy Twohig, the Director for Consumer Protection at the US Treasury Department, will keynote the event with an address discussing the Obama Administration’s proposed Consumer Financial Protection Agency. Following the keynote, a panel of progressive industry representatives and experts will illuminate who underbanked consumers are and why they choose alternative products. The CEO of a socially responsible venture capital firm will then follow with a presentation on the economics of serving underbanked consumers. Finally, a panel of policy experts …

Tags: Banking, Light, Shadow, Shining