Page 44 - Pay Magazine s2014

pay world
ManitOba
OntariO
QuÉbec
InnovatIon Is Coming—
Viewpoint
By Karen Andres, CFSI
In Viewpoints, prepaid and emerging pay- ments professionals share their perspectives on the industry. Paybefore endeavors to present many points of view to offer readers new insights and information. The opinions expressed in Viewpoints are not necessarily those of Paybefore.
A New Small-Dollar Credit Offering from Canada
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I’ve had the good fortune several times in my life to live north of Canada—well, at least north of the southernmost part of Canada.
And, I’ve learned that Canada and the U.S. aren’t really that different. Just as the mortgage mess and ensuing financial crisis dealt a crippling setback to millions of American families, so too have Canadians had trouble making ends meet as our intertwined economies limp along together. Canadians are on the hunt for products and services to help manage their day-to-day finances successfully and build healthier financial lives.
Despite a Canadian law stating that everyone, save fraudsters and
other criminals, is legally entitled
to a no-minimum-deposit checking account at the federally regulated financial institution of his or her choice, there remains a sizeable group of Canadian consumers who choose to manage part or all of their financial lives with check cashers and pay-day lenders. As we’ve documented time and again here at the Center for Financial Services Innovation (CFSI), there are many valid, often complex, reasons why someone might make this choice. To wit, last year alone, an estimated 3 percent of Canadian households conducted business with Canada’s CA$2 billion (US $1.87 billion) payday loan industry, which includes both online and offline players.
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