We’re back from the CFSI/American Banker EMERGE Conference in Los Angeles. EMERGE is the new name for CFSI’s Underbanked Conference, an event dedicated to exploring the needs of households who manage their finances outside of traditional institutions such as banks and credit unions.
We saw evidence of lots of innovation at the conference. For example, a cash-transaction network company called PayNearMe enables people to pay mortgages, utility bills, and other financial obligations with cash at 7-Eleven stores, ACE Cash Express stores, and Family Dollar stores. We later met a subprime auto lender who told us that 50% of his customers use PayNearMe to make their monthly payments. PayNearMe is clearly providing a useful service, enabling people to pay their important bills like auto loans safely and easily with cash.
But when it comes to meeting the diverse needs of this growing market, significant obstacles remain.
From our conversations with financial institutions and start-ups, one thing was clear: Large, traditional data vendors are doing a poor job meeting the IDV and CIP requirements of institutions and start-ups serving this market.
Identity verification and account-screening services from traditional vendors deliver poor matches rates or incomplete data. Financial institutions and start-ups interested in serving these communities need fast, reliable access to customer data (even for the unbanked) so they can meet CIP compliance requirements and direct customers to products that rightly balance risk and financial reward.
At Dragnet, it’s our mission to provide that real-time intelligence—with high match rates and critical insights about customers’ financial history, risks, and capabilities—for all consumer financial markets in the U.S.
At the conference, we demonstrated Accelerated Insight, our real-time account-screening solution. If you’d like to see what conference attendees saw, please contact us to arrange a demo.