Small-Dollar Credit Working Group

CFSI’s Small-Dollar Credit (SDC) Working Group was established to increase the development and accessibility of high-quality, scalable, and sustainable small-dollar credit that meets the needs of underserved borrowers and prospective borrowers and improves their financial health.

The SDC Working Group convenes industry leaders and experts who are deeply engaged in small-dollar credit issues to facilitate peer learning in a small-group setting and together positively impact the SDC marketplace.

This year, the SDC Working Group will focus primarily on the Future of Overdraft, including top industry and consumer pain points, regulatory scrutiny, barriers to product innovation, and the development of strategies for high-quality, sustainable next-generation overdraft products for providers and consumers alike. Additionally, the group will continue to track the development of regulatory action with regards to payday loans and related small-dollar credit products as warranted by federal rule-making developments.

2017 Goals

  • Hold two in-person meetings at CFSI events (EMERGE and Network Summit), and two virtual meetings. Periodic updates will also be made via email as necessary.
  • Members benefit from peer learning as they share findings from their own initiatives, products, and research.
  • Members apply CFSI small-dollar credit research and insights within their organizations.
  • Members serve as expert advisors and contributors to the creation of CFSI research and thought leadership to positively influence industry best practices, innovation, and regulatory developments for select small-dollar credit topics.
  • Contribution to the development of a public document in conjunction with CFSI to serve as a roadmap for rethinking Overdraft. This document will aim to address challenges and solutions to:
    • Financial institutions’ reliance on overdraft revenue streams
    • Drivers of frequent overdraft customer usage
    • Provision and use of other credit and transaction products in conjunction with, or in lieu of, overdraft protection
    • Innovative partnership opportunities to address consumer liquidity shortages
    • Shared value creation for providers and frequent overdraft users

Membership Expectations

  • Members regularly attend SDC Working Group meetings and contribute to discussions.
  • Each member contributes by sharing their organization’s product insights, research, and/or expert advice to aid in achieving the group’s goals.
  • The SDC Working Group is made up of a diverse range of financial service providers of all sizes, mission-based organizations, consumer advocates, and other practitioners with a strong interest in small-dollar credit. Membership is limited to approximately thirty members to ensure a focused, committed group.
  • SDC Working Group members have an equal voice in contributing to the group’s agenda and discussion.