The Center for Financial Services Innovation (CFSI) released a new study that uncovers reasons why consumers use potentially harmful small-dollar credit products and highlights the need for better high-quality credit solutions.

“Every year, millions of American consumers use small-dollar credit products for quick access to cash,” said lead author, Rob Levy, Manager, Innovation and Research at CFSI. “These products — payday loans, pawn loans, direct deposit advance loans, auto title loans, and non-bank installment loans — often come with high fees or interest rates and can lead consumers into a cycle of repeat usage and mounting debt. Our goal with this study was to see where the market is today, and encourage development of high-quality credit as defined by affordability, transparent marketing, a structure that supports repayment without creating a cycle of repeat borrowing, and offering the opportunity for credit-building.”

The study, supported by the Ford Foundation, surveyed over 1,100 small-dollar credit (SDC) consumers, plus an additional 500 non-SDC consumers for comparison.

The Center for Financial Services Innovation (CFSI) has announced "the first convening of its Financial Capability Innovators Development Lab. The initiative will serve to support a small group of leading innovators through peer learning opportunities in order to strengthen their capacity, sophistication, and efficiency in delivering solutions that promote the financial capability of underserved consumers."

Beneficial Bank, a full-service bank that specializes in serving the financial needs of the greater Philadelphia and South Jersey regions, has announced it is unveiling a new, education-themed retail banking concept with the opening of two new branches in Cherry Hill, New Jersey.

“Beneficial Bank is not only a bank, it is an education company that puts a priority on providing customers with the tools and resources that they need to become smarter about their money and do the right thing financially,” said Gerard P. Cuddy, President and CEO of Beneficial Bank. “Our two new campuses in Cherry Hill are a representation of Beneficial’s education philosophy and we plan for these innovative retail banks to become the blueprint for the next generation of Beneficial Banks.”

As a part of Beneficial Bank’s education mission and to commemorate its introduction to the community, the bank will donate $20,000 to the Cherry Hill Public Schools to support financial literacy education at Cherry Hill High School West and Cherry Hill High School East in the 2010-2011 school year.

Walmart has announced that it is "stepping up efforts to provide affordable access to essential money services for the growing number of underserved Americans, including the millions who are not using traditional checking accounts to manage their finances. Dubbed "Operation Main Street: Money Management," the program includes a $3 Rollback price on the Walmart MoneyCard and a focus on financial literacy." READ MORE »