Community Service Innovation to Drive Community Action Programs
Creating programs for the Federal Reserve Bank to help educate unbanked and underbanked consumers
- The Federal Reserve Bank of Kansas City engaged Pathfinder in partnership with Blue Flame Consulting to work with them to better understand the perceptions, experiences, and preferences of unbanked and underbanked consumers in regard to their cash management strategies and the selection and use of financial institutions.
- Underbanked consumers use a mixture of alternative providers such as check cashers, pay day lenders, pawn brokers, and Walmart to satisfy their financial service needs.
- Participants from four markets were from homeless shelters, churches, including undocumented people. Immersion sessions were conducted in both English and Spanish to truly understand the dire circumstances of these individuals.
- Deep emotional needs were uncovered as underbanked consumers and foreign immigrants often mistrust banks. These feelings of mistrust were revealed and dimensionalized for corrective initiatives to be developed.
The Innovation deliverables from this assignment shaped outreach and education programs with underbanked consumers, strengthened relationships with financial institutions, community development partners, and local governments. The results of this study were also published in Federal Reserve publications and presented to key stakeholder groups.