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support continued innovation and the use of technology
The ve
point of sale
ry
The very point of sale to improve financial outcomes for all members of society."
Close service gaps
The FPC's white paper, Faster Payments and Financial
Inclusion, published in July 2022, made a case for tailoring
faster payment schemes to marginalized communities.
From underserved FPC researchers cited the following service gaps between
underserved individuals and financial service providers:
to understood • Design: Product design is not currently targeted to
needs of the financial lives of the underserved.

By Dale S. Laszig • Liquidity constraints: Tight budgets mean a delay,
interruption or loss of funds can lead to a cascade of
DSL Direct LLC adverse financial consequences.
• Cash in/cash out: People without bank or credit
hy would financial institutions, with rich union accounts face costs to get cash into and out of
reserves of consumer data, artificial intel- faster payments.
ligence and advanced sense-making technol-
W ogy, paint marginalized communities with a • Trust: Trust in financial services providers may be
broad brush? Aggregating all types of underfinanced indi- low. It may be undermined in the absence of strong
viduals into one amorphous "underserved" demographic customer service and language access, and by
seems odd, especially in financial services, an industry that apprehension about fees.
champions personalization at scale. Examples of personal- • Mistake prevention: The customer's ability to absorb
ization on a massive scale might be an app notifying a user loss of funds due to a mistake is limited.
that a favorite brand will be going on sale, or a store beacon
pinging a nearby customer with a compelling, time-sensi- • Fraud prevention and remedy: The customer has
tive offer. While millions of consumers experience these limited ability to absorb loss of funds from fraud.
connections, the moment may indeed feel intimate, as if • Security: Concerns remain about the security of
"my brand really gets me." funds and impact of security procedures on inclusion.
• Interoperability for ease of use: Concerns remain
That warm and fuzzy feeling, however, is not one that about how to use faster payments efficiently when
underserved consumers associate with banks. And their payees and payors may use different payment
lack of confidence in banks is hardly surprising, given methods that do not connect.
big banks' brand messaging, which has been anything but
personal. To begin with, banks tend to view marginalized "The data about usage of faster payments shows that
consumers as one great big group, not as individuals with there is room for much more financial inclusion," FPC
diverse perspectives, challenges and needs. However, researchers wrote. "Government statistics about person-
researchers and consumer advocates are seeing improved to-person payments via payment apps show both strong
attitudes and messaging in banking and fintech sectors. growth and a big divide in who is using these forms of

Create inclusivity faster payments."
Recent studies by the Electronic Transactions Association Celebrate successes
and the U.S. Faster Payments Council indicate fintechs and ETA researchers noted financial institutions and tech
financial institutions are getting better at understanding providers have focused on providing high-quality,
consumers who have been bypassed by traditional financial affordable financial services to the broadest possible
services and becoming adept at designing products and set of consumers. Progress has been made over the past
services that address their needs. decade, they stated, in terms of expanding access and
lowering barriers to entry. This has resulted in 88 percent
The ETA's white paper, Creating a More Inclusive Economy: of Americans using fintech to manage expenses, up from
How Fintech Advances Digital Resources for Underserved 58 percent in 2020, they added.
Communities, published in February 2022, described
payments industry initiatives that drove economic recovery "The unprecedented recent advancements in technology
by helping consumers and business owners connect, engage highlighted in this white paper continue to provide
and transact during the pandemic. "ETA members played significant benefits to underserved consumers, as well
a leading role bringing swift financial aid and innovative as the broader economy," ETA researchers wrote. "ETA
offerings to businesses, consumers, and underserved members are constantly developing and deploying new
communities when it was needed most," said Jodie Kelley, products and services, bringing together traditional
CEO of ETA. "As the leading trade association for the digital players and new participants." ETA authors further
transactions industry, ETA encourages policymakers to noted technology innovations are shortening product

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