1. New Consumer Research,
including the Role of Prepaid in
Financial Literacy and Access
Kathy Steinberg
Senior Research Manager
Harris Poll Insights
Harris Interactive on behalf of
National Foundation for Credit
Counseling
Enrique Lopezlira
Senior Policy Advisor, Economic Policy
National Council of La Raza (NCLR)
Friday, June 28, 2013
8:30 a.m.-9:30 a.m.
John Tyson
Vice President Compliance
ACE Cash Express
Walt Henderson
Director of the EFT Strategy Division
Management Service
U.S. Department of the Treasury
© 2013 Network Branded Prepaid Card Association

2. Thank You To Our Sponsors
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Presenting Sponsors
Supporting Sponsor Welcoming Reception Sponsor
Associate Sponsors
Founding Sponsors

3. 3
The information contained on these slides is considered the proprietary
Information of the Network Branded Prepaid Card Association (NBPCA). It
may not be distributed or reproduced without the expressed written
permission of an officer of the NBPCA.
The opinions expressed by the presenters during this presentation are
exclusively their own and subject to change.

4. ACE Values Consumer Advocacy
• ACE Cash Express, leading retailer of financial services,
including short-term consumer loans, check cashing, auto
insurance, bill payment & prepaid debit card services
• ACE saw value in industry collaboration to advance our
common goal of financial literacy & has supported NBPCA
research projects such as NFCC Financial Literacy & NCLR
• Product development heavily influenced by research to
best meet the needs of our customers seeking alternatives
to traditional financial services
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5. ACE Elite™ Visa® Prepaid Debit Card
• Brought on prepaid as a product offering in 2002, in partnership
with NetSpend®
• Innovations over the years include: in-store card activation, charity
card in partnership with The National Breast Cancer Foundation,
no-fee cash withdrawals & in store service options
• 95% of ACE Elite™ customers would refer a friend or family member
to the product*
*Based on the 2013 Survey of ACE Elite Cardholders
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6. National Foundation for Credit Counseling
• Nation’s largest financial counseling organization,
the NFCC Member Agency Network includes
more than 700 community-based offices located
in all 50 states and Puerto Rico
• NFCC Member Agencies provide financial
counseling and education to millions of
consumers each year in person, over the phone
or online
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7. 2013 Consumer Financial Literacy Survey*
Conducted online by Harris Interactive on behalf of NFCC and NBPCA
• 7th annual nationally representative survey of U.S. adults
(conducted by telephone in prior years)
• Field period: March 4-6, 2013
• Sample size: 2,037 U.S. adults ages 18+, including n=91** prepaid debit card users
Survey Topics included:
• Budget, Spending & Savings
• Getting Paid & Paying Bills
• Credit Cards & Credit Reporting
• Knowledge of Personal Finance
• Financial Problems & Credit Counseling
• Prepaid Debit Cards
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*Complete Survey Details
http://www.nfcc.org/newsroom/FinancialLiteracy/files2013/NFCC_NBPCA_2013%20FinancialLiteracy_survey_datasheet_key%20findings_032913.pdf
**Caution: small base (n<100) – results should be interpreted as directional.

8. 2013 Key Findings Highlights*
• 2 in 5 U.S. adults – 40% – have a budget and keep close track of their spending
• On a scale from A to F, only 18% of U.S. adults would give themselves an “A” on their
knowledge of personal finance
• 8% of U.S. adults – or nearly 19 million people – have used a prepaid debit card in
the past 12 months
• 6% of U.S. adults – about 14 million people – say they typically use a prepaid debit
card to pay for everyday transactions (“prepaid debit card users”)
• Those who regularly use prepaid debit cards do so primarily because they are
convenient (59%) – only about 1 in 4 (24%) rely on prepaid debit cards because they
lack other payment/banking options
• 81% of prepaid debit card users say they feel more in control of their money with a
prepaid debit card, and more than 2 in 5 – 43% – strongly agree
• 71% wish their prepaid debit card offered the option to enroll in overdraft protection
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*Complete Survey Details
http://www.nfcc.org/newsroom/FinancialLiteracy/files2013/NFCC_NBPCA_2013%20FinancialLiteracy_survey_datasheet_key%20findings_032913.pdf

9. National Council of La Raza (NCLR)
• Largest national Hispanic civil rights and advocacy
organization in the U.S.
• Network of nearly 300 affiliated community-based
organizations in 41 states, Puerto Rico, and the District of
Colombia
• Applied research, policy analysis and advocacy in five key
areas: Assets/investments, civil rights/immigration,
education, employment and economic status, and health
• Capacity building assistance to Affiliates who work at the state
and local level to advance opportunities for individuals and
families

10. Alliance for Stabilizing Our Communities (ASOC)
• Partnership between NCLR, National Urban League (NUL), and
National Coalition for Asian Pacific American Community
Development (CAPACD)
• Three HUD-certified housing counseling intermediaries that
work with a network of 95 local housing counseling agencies
• 2013 Financial Services Research Project: More than 5,000
AAPI, African-American, and Latino clients surveyed in 4 states
– CAPACD: California (various cities); Chicago, IL; Houston, TX
– NUL: South Florida; Chicago, IL; Houston, TX
– NCLR: South Florida; Chicago, IL; El Paso, San Antonio, and Houston, TX
(also have a 2012 data set from various California cities)
– Full data set will be available in late July, with a report out in late Fall

11. Factors Influencing Where to Bank

12. Banking Services
Q: What are the top 3 factors you consider when deciding or
choosing where to do your banking or other financial transactions?

13. Tools for Financial Transactions
Tool Total (%) Men (%) Women (%)
Cash 69 70 68
Debit card 52 48 55
Credit cards 35 35 34
Checks 9 9 9
EBT/public benefit 8 7 9
Gift cards 7 6 8
Prepaid cards 4 4 4
Other 1 1 1
N 5,376 2,142 3,225

14. Tools for Paying Bills
Tool Total (%) Men (%) Women (%)
Cash 45 47 43
Debit card 39 37 40
Internet 30 26 33
Check 28 26 29
Credit cards 22 24 21
Money order 11 13 10
Prepaid cards 3 3 3
Kiosk in store 2 1 2
Gift card 1 1 1
N 5,386 2,149 3,228

15. Mobile Banking
Total (%) Men (%) Women (%)
Yes, online 39 38 40
Yes, mobile 5 5 6
Yes, both 12 11 13
Neither 39 41 37
N 5,369 2,142 3,219

16. Direct Express® Prepaid Debit MasterCard®
• Offered by the U.S. Treasury through an agreement with
Comerica Bank
• Meets Treasury’s requirement to make a low-cost account
available to unbanked federal benefit recipients
• Key component of Treasury’s all Electronic effort
• Available for SSA, SSI, VA, Railroad Retirement, OPM
annuities, Labor – Black Lung disabilities
• Over 3.5 million cardholders
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17. Consistently High Cardholder Satisfaction
• Satisfaction among those who signed up for the Direct Express® after May 1, 2011 is equally high
• 93% of cardholders would recommend the Direct Express® card to a relative or friend
*Research conducted by KRC Research on behalf of Comerica Bank and MasterCard
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93
94
95
2009 2010 2011 2012
Customer Satisfaction
(Percent Satisfied or Very Satisfied)
Percentage

18. Continuous Cardholder Education is Key
• Significant increase in awareness of text alerts and the ability to pay
bills like utilities, by phone.
• Four in ten remain unaware of surcharge-free ATMs
• ATM withdrawals and purchases remain the most prevalent uses of
the card, while paying bills by phone (now over half) and Internet
purchases (now about three in 10) have increased significantly over
the past two years
• Innovative financial literacy efforts drive behavior - PayPerks® -
rewards based program
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19. Questions?
• Thank you for attending New Consumer
Research, including the Role of Prepaid in
Financial Literacy and Access
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