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FDIC Advisory Committee on Economic Inclusion – Small Dollar LoansSmall Dollar FDIC panel of experts discusses options to reach populations underserved by existing financial programs October 22, 2009
The FDIC Advisory Committee on Economic Inclusion (ComE-IN) was established in 2006 by Chairman Sheila C. Bair and the FDIC Board of Directors according to the Federal Advisory Committee Act. The Committee provides the FDIC with advice and recommendations on important initiatives focused on expanding access to banking services by underserved populations, including reviewing basic retail financial services such as: check cashing, money orders, remittances, stored value cards, short-term loans, savings accounts, and other services that promote asset accumulation by individuals and financial stability. James Gutierrez, CEO of Progreso Financiero addressed FDIC Chairman, Sheila Bair and the FDIC Advisory committee on Economic Inclusion, explaining how his company is innovating to make small dollar loans available to a growing number of communities. "Our challenge is in achieving scale which would allow us to leverage our innovative risk scoring model, our proprietary technological solutions to a high touch lending approach, and the distribution channels we have developed" explained James. "Progreso Financiero has already made close to 35,000 small dollar loans to under-banked Hispanics, almost double the volume generated by the Small Dollar Loan pilot program". FDIC Chairman, Sheila Bair commented with regards to Progreso Financiero; "Expanding access to affordable and responsible small dollar loans can significantly improve the financial well-being of households, particularly lower-income households, and is one of the major objectives of our Advisory Committee. Sharing your company's experiences will inform our Committee's work as we move forward to address this issue in the future." Opening remarksSheila C. Bair, Chairman, Federal Deposit Insurance Corporation Notable Panelists
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