CFPB Assesses How Mobile Banking Impacts Low-Income Consumers

CFPB Assesses How Mobile Banking Impacts Low-Income Consumers

mobile payments

mobile paymentsThe Consumer Financial Protection Bureau is investigating the benefits and challenges of mobile financial services. Part of the investigation will explore how mobile technologies affect unbanked and underserved consumers who have limited access to traditional banks.

The inquiry will concentrate on mobile banking services and mobile financial management services. The CFPB will look at how the use of mobile payment products can be used to assist underserved consumers with their finances. The bureau says these underserved populations include younger consumers, low-income communities, or those who do not have easy access to traditional banking.

Said CFPB Director Richard Cordray in a statement, “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. But we need to make sure all consumers are protected whether they are opening their wallets or scanning the screen on their smartphones.”

The CFPB noted a study by the Federal Reserve that found one-third of cell phone users and more than half of smartphone users are able to gain greater access to their bank or credit union account through their mobile devices. Furthermore, Last year, 74,000 customers per day began using mobile banking services for the first time.

During the period where the CFPB seeks comments from the public, they are hoping to get information on mobile financial services as it relates to real-time money management, customer service, and privacy concerns and data breaches.