1 / 8

Innovation and Investment: Trends in the Underbanked Market A CFSI Innovation Exchange

Innovation and Investment: Trends in the Underbanked Market A CFSI Innovation Exchange. Working agenda. Introduction: Michael Herrmann, Research Director, CFSI 7 min CFSI Investing Overview: Arjan Schutte, Associate Director, CFSI 7 min

carl
Download Presentation

Innovation and Investment: Trends in the Underbanked Market A CFSI Innovation Exchange

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Innovation and Investment: Trends in the Underbanked Market A CFSI Innovation Exchange

  2. Working agenda Introduction: Michael Herrmann, Research Director, CFSI 7 min CFSI Investing Overview: Arjan Schutte, Associate Director, CFSI 7 min TIO – Hamed Shahbazi, Chairman & CEO 30 min Question and Answers 15 min

  3. Introduction • A number of startup companies have emerged with innovative products and services for the Underbanked market. • CFSI has evaluated some of these firms in terms of: • Impact to consumers • Potential for financial return • Degree of innovation • The majority of companies observed are in the startup or early seeding stage. • The products and services these firms are bringing to market are evolving across all three innovation segments; • Consumer products • Marketing methods and distribution channels • Risk management tools • Several offer products that address more than one innovation segment

  4. Investing: Seeding Promising Companies and Ideas Smart capital that drives social impact is lacking. CFSI catalyzes double bottom line innovation through grants and investments. • Five equity investments - $950,000 • Eight grants to non-profits - $800,000 • Launched Catalyst Fund in July 2007 • Launched Nonprofit Opportunities Grant Fund in February 2008

  5. Underbanked Innovation Trends

  6. Innovation Trends, continued • Top talent sees opportunity (e.g. MoneyCard) • Best innovators combine multiple sectors (e.g. AccountNow, Progress Financial) • Latino market remains hot (40% of all) • Focus remains on payments, followed by lending • Opportunities for savings/investment (e.g. save252 and US Gift Bond) • More distribution innovation necessary • While 51% are B2C, only 24% innovate in marketing/distribution

  7. Sample Investments • Tio Networks – manages payment network for self service kiosks, POS and online including bill pay, prepaid reload, credit building • CircleLending (now Virgin Money) – services interpersonal loans (between friends and family), including personal, businesses and mortgages • RentBureau – collects rent payment data from property managers and will provide these data to credit underwriters in lieu of, or in addition to, traditional credit data • AccountNow – offers general purpose prepaid card with billpayment, credit building and short term lending sold mostly online

  8. Hamed ShahbaziChairman and CEO TIO Networks

More Related