Federal Deposit Insurance
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-32-2016
May 3, 2016
REQUEST FOR COMMENTS ON MOBILE FINANCIAL SERVICES STRATEGIES AND
PARTICIPATION IN ECONOMIC INCLUSION DEMONSTRATIONS
Summary: The FDIC's Division of Depositor and Consumer Protection is seeking input from financial institutions,
consumer groups and other stakeholders on the FDIC's plans to assess opportunities for mobile financial services to
enhance underserved consumers' banking experiences.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter (FIL)
applies to all FDIC-insured institutions.
Distribution:
FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
CRA Officer
Chief Retail Officer
Related Topics:
Mobile Financial Services and Economic
Inclusion
Assessing the Economic Inclusion
Potential of Mobile Financial
Services (white paper) - PDF (PDF Help)
Contact:
Keith Ernst, Associate Director
Consumer Research & Examination
Analytics
Division of Depositor and Consumer
Protection
MFSDemonstration@fdic.gov or 202-898-
3883
Note:
FDIC Financial Institution Letters (FILs)
may be accessed from the FDIC's website
at https://www.fdic.gov/news/news/financi
al/2016/.
To receive FILs electronically, please visit
http://www.fdic.gov/about/
subscriptions/fil.html.
Paper copies may be obtained through
the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-
2200).
Highlights:
The FDIC's Division of Depositor and Consumer Protection is seeking input
from financial institutions, consumer groups and other stakeholders on its
plans for exploring the economic inclusion potential of mobile financial services
(MFS). The FDIC is interested in demonstrating how MFS can be successfully
leveraged to promote and support underserved consumers' banking
relationships.
Recently, the FDIC conducted qualitative research to identify ways in which
insured depository institutions might use MFS to better engage underserved
consumers in the banking system.
Emerging from this research, the FDIC has identified a set of six strategies that
banks employing MFS may consider to better meet consumer needs, as well
as potential demonstrations that can document the usefulness of certain
strategies.
The FDIC is soliciting comments and feedback on: 1) financial institutions'
current implementation of these strategies; 2) the best way to shape a
demonstration project; and 3) indications of interest from financial institutions
that may wish to participate in a demonstration.
Please share feedback by emailing MFSDemonstration@fdic.gov or by calling
the MFS Project Mailbox at (202) 898-3883 by June 15, 2016.Inactive
Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-32-2016
May 3, 2016
REQUEST FOR COMMENTS ON MOBILE FINANCIAL SERVICES STRATEGIES AND
PARTICIPATION IN ECONOMIC INCLUSION DEMONSTRATIONS
Summary: The FDIC's Division of Depositor and Consumer Protection is seeking input from financial institutions,
consumer groups and other stakeholders on the FDIC's plans to assess opportunities for mobile financial services to
enhance underserved consumers' banking experiences.
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter (FIL)
applies to all FDIC-insured institutions.
Distribution:
FDIC-Insured Institutions
Suggested Routing:
Chief Executive Officer
CRA Officer
Chief Retail Officer
Related Topics:
Mobile Financial Services and Economic
Inclusion
Assessing the Economic Inclusion
Potential of Mobile Financial
Services (white paper) - PDF (PDF Help)
Contact:
Keith Ernst, Associate Director
Consumer Research & Examination
Analytics
Division of Depositor and Consumer
Protection
MFSDemonstration@fdic.gov or 202-898-
3883
Note:
FDIC Financial Institution Letters (FILs)
may be accessed from the FDIC's website
at https://www.fdic.gov/news/news/financi
al/2016/.
To receive FILs electronically, please visit
http://www.fdic.gov/about/
subscriptions/fil.html.
Paper copies may be obtained through
the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-
2200).
Highlights:
The FDIC's Division of Depositor and Consumer Protection is seeking input
from financial institutions, consumer groups and other stakeholders on its
plans for exploring the economic inclusion potential of mobile financial services
(MFS). The FDIC is interested in demonstrating how MFS can be successfully
leveraged to promote and support underserved consumers' banking
relationships.
Recently, the FDIC conducted qualitative research to identify ways in which
insured depository institutions might use MFS to better engage underserved
consumers in the banking system.
Emerging from this research, the FDIC has identified a set of six strategies that
banks employing MFS may consider to better meet consumer needs, as well
as potential demonstrations that can document the usefulness of certain
strategies.
The FDIC is soliciting comments and feedback on: 1) financial institutions'
current implementation of these strategies; 2) the best way to shape a
demonstration project; and 3) indications of interest from financial institutions
that may wish to participate in a demonstration.
Please share feedback by emailing MFSDemonstration@fdic.gov or by calling
the MFS Project Mailbox at (202) 898-3883 by June 15, 2016.Inactive
Financial Institution Letters
FIL-32-2016
May 3, 2016
Request for Comments on Mobile Financial Services Strategies and Demonstration for Economic
Inclusion
The Federal Deposit Insurance Corporation (FDIC) is seeking input from financial institutions, consumer groups and other
stakeholders on its proposed efforts for exploring the potential of mobile financial services (MFS) to bring the underserved
into the mainstream banking system.
The FDIC published a white paper in 2014 on the potential for MFS to attract and enhance the banking experiences of
unbanked and underbanked consumers. Recently, the FDIC conducted consumer research on opportunities for MFS-
based strategies to address these populations' needs. Preliminary findings were presented on October 30, 2015, at the
Chairman's Advisory Committee on Economic Inclusion (ComE-In). The results suggested that MFS can help foster more
sustainable banking relationships with underserved consumers. Emerging from this research, the FDIC has identified a
set of six strategies that banks employing MFS may consider to better meet consumer needs, as well as potential
demonstrations that can document the usefulness of certain strategies. These demonstrations could be built around new
or existing offerings.
The FDIC is soliciting comments and feedback on: 1) financial institutions' current implementation of these strategies; 2)
the best way to shape a demonstration project; and 3) indications of interest from financial institutions that may wish to
participate in a demonstration.
Comments on the Implementation of MFS Strategies
During the FDIC's qualitative research, underserved consumers noted opportunities for their financial providers to meet
their needs more effectively with MFS. The following are several of the most promising strategies identified by the FDIC:
Increase consumer control over finances by improving access to timely account information.
Post transactions in as close to real time as possible and communicate more precise timing of when payments and
deposits are expected to clear (as opposed to a range).
Clearly identify transactions not factored in the current available balance.
Expedite access to money.
Find ways to clear mobile remote deposit capture (mRDC) deposits faster, while maintaining sound risk-
management practices. For example, offer mRDC with faster availability options in exchange for a reasonable fee.
Make banking more affordable through better account management.
Promote the use of MFS as a tool to help consumers reduce unexpected fees. For example, offering low-balance
alerts or using MFS to conduct timely balance and transaction monitoring can help avoid overdraft or insufficient
funds (NSF) fees.
Address real and perceived security shortfalls.
Develop and communicate security measures to allay widespread fears about MFS, both real and perceived. Inform
consumers about best practices they can implement to minimize MFS security risks, such as setting password
protection on mobile phones and being mindful when using unsecured networks.
Increase awareness of mobile tools.
Promote the use of MFS as a tool to help improve consumers' control of their finances. Identify and target customer
segments that might benefit from strategies to help them manage funds, reduce unanticipated fees, maintain
minimum required balances, increase savings or avoid having transactions declined.
Offer MFS setup as part of the account opening process and demonstrate available alerts and functionsInactive
FIL-32-2016
May 3, 2016
Request for Comments on Mobile Financial Services Strategies and Demonstration for Economic
Inclusion
The Federal Deposit Insurance Corporation (FDIC) is seeking input from financial institutions, consumer groups and other
stakeholders on its proposed efforts for exploring the potential of mobile financial services (MFS) to bring the underserved
into the mainstream banking system.
The FDIC published a white paper in 2014 on the potential for MFS to attract and enhance the banking experiences of
unbanked and underbanked consumers. Recently, the FDIC conducted consumer research on opportunities for MFS-
based strategies to address these populations' needs. Preliminary findings were presented on October 30, 2015, at the
Chairman's Advisory Committee on Economic Inclusion (ComE-In). The results suggested that MFS can help foster more
sustainable banking relationships with underserved consumers. Emerging from this research, the FDIC has identified a
set of six strategies that banks employing MFS may consider to better meet consumer needs, as well as potential
demonstrations that can document the usefulness of certain strategies. These demonstrations could be built around new
or existing offerings.
The FDIC is soliciting comments and feedback on: 1) financial institutions' current implementation of these strategies; 2)
the best way to shape a demonstration project; and 3) indications of interest from financial institutions that may wish to
participate in a demonstration.
Comments on the Implementation of MFS Strategies
During the FDIC's qualitative research, underserved consumers noted opportunities for their financial providers to meet
their needs more effectively with MFS. The following are several of the most promising strategies identified by the FDIC:
Increase consumer control over finances by improving access to timely account information.
Post transactions in as close to real time as possible and communicate more precise timing of when payments and
deposits are expected to clear (as opposed to a range).
Clearly identify transactions not factored in the current available balance.
Expedite access to money.
Find ways to clear mobile remote deposit capture (mRDC) deposits faster, while maintaining sound risk-
management practices. For example, offer mRDC with faster availability options in exchange for a reasonable fee.
Make banking more affordable through better account management.
Promote the use of MFS as a tool to help consumers reduce unexpected fees. For example, offering low-balance
alerts or using MFS to conduct timely balance and transaction monitoring can help avoid overdraft or insufficient
funds (NSF) fees.
Address real and perceived security shortfalls.
Develop and communicate security measures to allay widespread fears about MFS, both real and perceived. Inform
consumers about best practices they can implement to minimize MFS security risks, such as setting password
protection on mobile phones and being mindful when using unsecured networks.
Increase awareness of mobile tools.
Promote the use of MFS as a tool to help improve consumers' control of their finances. Identify and target customer
segments that might benefit from strategies to help them manage funds, reduce unanticipated fees, maintain
minimum required balances, increase savings or avoid having transactions declined.
Offer MFS setup as part of the account opening process and demonstrate available alerts and functionsInactive