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 Feb '18Jan '18
# of CUs5,7575,758
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings82.6%84.1%
Loan Delinq.0.8%0.9%

         Credit Union Indicators

Prepaid Card Usage Surges

And not just with the unbanked.

Use of general purpose prepaid cards continues to climb, according to a study by Pew Charitable Trusts.

But not only the unbanked have prepaid cards tucked inside their wallets.

Pew's "Banking on Prepaid" report finds that prepaid card use jumped more than 50% between 2012 and 2014, and that the gains were largely driven by consumers who had existing accounts with traditional financial institutions. Roughly 14% of U.S. credit unions offered prepaid cards as of March, according to CUNA.

Still, prepaid card use remains common among the unbanked.

Of the roughly 8% of U.S. households considered unbanked by the Federal Deposit Insurance Corp., more than one in five had used a prepaid card in the previous 12 months, according to the study.

Only 5% of households with an account at a financial institution had used a prepaid card.

"The findings in this report demonstrate the need for the Consumer Financial Protection Bureau (CFPB) to finalize its proposed rules on prepaid cards," the report suggests. "This is especially important for the unbanked, for whom prepaid cards are often their only transaction account, to ensure that these cards are safe, transparent financial products with uniform protections against theft, loss, and deception."

The report also asserts the CFPB should draft rules to reclassify prepaid cards that access overdraft services or credit features for a fee as credit cards.

(Via News Now)