CFPB to explore mobile solutions for the unbanked

With the explosion in smartphone and tablet usage, the Consumer Financial Protection Bureau launched an inquiry into the mobile banking and payments space to determine how mobile services are impacting the financial lives of the unbanked and underbanked populations.

“In a world where people can manage their money on the go, there is great potential to serve more consumers and allow them to take greater control of their finances,” said CFPB Director Richard Cordray. “But we need to make sure all consumers are protected whether thpey are opening their wallets or scanning the screen on their smartphones.”

Through a Request for Information inquiry (RFI) from the financial services industry, the CFPB is focusing on mobile banking and mobile financial management services. The CFPB’s specific areas of interest include how the financially underserved access these services; how they can manage their money; how they receive customer service; and privacy/data breach concerns.

The CFPB cited a recent Federal Deposit Insurance Corp. study that said mobile financial services “offers the potential to help the unbanked and underbanked populations gain access to the banking system and grow their financial capability.”

Financial services firms have until September 2014 to respond to the CFPB’s RFI.

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