Coopera Blog — 2012

Your Future Prepaid Cardholders are Hispanic

Posted by Miriam De Dios Woodward on November 20, 2012

For the first time in our country’s history, minority births reached 50.4 percent of total births in the U.S. from July 2010 to July 2011, according to the Census Bureau. Of the total births in that year, the Census reveals that nearly 26 percent were Hispanic.

Looking at numbers, it’s easy to see the question isn’t will Hispanic members be a part of your future, but how soon. By providing dignified financial services to Hispanics, your credit union will not only achieve successful growth for your cooperative; you’ll also make a difference in the lives of your neighbors.

Competition for this growing segment is heating up. This is why it is incredibly important for your credit union to offer prepaid products that focus their marketing power on differentiation, and understanding how Hispanic cardholders will use your prepaid card products is key.

Hispanic cardholders may want to use their prepaid card as an affordable way to share funds with family members abroad so it’s important that your prepaid card offering does not limit the amount of cardholders on the account to two persons. Prepaid cards like the Coopera Card, which not only offer cardholders cash loads via in-branch, online, direct deposit and Visa ReadyLink merchants, also allow cardholders to request up to six additional cards for family, whether stateside or outside the country.

For cardholders looking to use prepaid cards as an alternative to money transfers, presenting an option that charges less in foreign exchange rates, like the Coopera Card that currently offers a foreign exchange rate of one percent compared to the two percent other cards charge, can go a long way toward attracting cardholders to your credit union.

Also, do not underestimate the strong need for language and cultural relevance with your prepaid card offering. Consult with a specialist who can double check the cardholder’s entire user experience, as well as your credit union’s marketing approach and message to be sure they are relevant. Prepaid cards configured to support the cultural and lifestyle nuances of your target membership, can be incredibly influential in developing long-term members for your credit union.

Now is the perfect time to begin outreach to the Hispanic community, and prepaid cards can be just the door-opener you need to begin courting this market.

The content of this blog is based on the Coopera white paper “Prepaid Cards Are Not Created Equal.” Download the paper for free today.

Prepaid Cards Perfect for Consumers Fed Up with Soaring Fees

Posted by Miriam De Dios Woodward on November 13, 2012

With demand-deposit accounts and debit card transactions so strictly regulated, many of your credit union’s big-bank competitors have imposed a variety of new fees on traditional banking services. This has led to many consumers, both banked customers as well as the underserved, choosing to carry cash or use prepaid cards instead of paying these rising fees.

Because prepaid cards can be used much like debit cards, to pay bills or make purchases, as well as to withdraw and transfer funds and account information with ATM and text-messaging services, they have become a strong alternative to costly check-cashing services and money transfer services.

With a focus on fair fees – and more importantly, disclosure of those fair fees – many prepaid card vendors, including Coopera, have voluntarily adopted a fee-disclosure box that makes it easier for consumers to compare prepaid card fees and choose the one that best fits their needs.

For credit unions, the potential exists to provide a prepaid card that goes beyond simply access to funds via plastic. It is an opportunity for your credit union to build a long-term relationship with the underserved, as well as to convert disenfranchised big-bank customers into loyal members.

The content of this blog is based on the Coopera white paper “Prepaid Cards Are Not Created Equal.” Download the paper for free today.

Do Homework Before Choosing a Prepaid Card Product

Posted by Miriam De Dios Woodward on November 6, 2012

Today, the underserved — many of whom choose not to join a credit union or open an account with a bank simply because they do not trust U.S. financial institutions — are frequently using expensive nonbank financial services, like money orders, check-cashing and payday advances instead. Prepaid cards, too, are a growing alternative for this group, who are looking for fast, easy and cheap ways to pay bills and to make purchases.

To protect underserved consumers, scrutiny of prepaid card products is on the rise. In fact, financial regulatory organizations, like the Consumer Financial Protection Bureau (CFPB), are under enormous pressure to crack down on all manner of so-called predatory services targeting the underserved.

If your credit union plans to offer a prepaid card product as part of your strategic growth, this is something you need to keep an eye on. Monitoring the situation is not just to protect your business, but it is also so you understand the competitive advantage you can leverage with the right prepaid card product.

Before you partner with a prepaid card vendor, do your homework — know the differences in the available options (fee structures, terms and conditions, as well as disclosures). To make sure you are bringing the safest, most reliable and best-suited product forward, find the prepaid card that is tailored to match the financial behaviors of your members.

The content of this blog is based on the Coopera white paper “Prepaid Cards Are Not Created Equal.” Download the paper for free today.

Your Future Prepaid Cardholders are Hispanic

Prepaid Cards Perfect for Consumers Fed Up with Soaring Fees

Do Homework Before Choosing a Prepaid Card Product

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