NCTC and NetSpend Make Compass Commitment
As part of our recently announced prepaid debit card initiative, NCTC mentioned that we had committed to the Compass Principles put forward by the Center for Financial Services Innovation (CFSI).
But what does that mean, exactly?
CFSI’s Compass Principles are guidelines that outline the methods by which CFSI partners plan to provide low- and moderate-income families with beneficial and sustainable financial practices. The features of the General Purpose Reloadable (GPR) prepaid card being used for NCTC’s initiative are based on these Compass Principles, which NetSpend has also endorsed.
There are four Compass Principles:
- Embrace Inclusion: Those from underserved communities should have the right to access affordable and convenient financial services.
- Build Trust: Prepaid cards are safe and reliable; they aid, rather than profit from, consumers.
- Promote Success: GPR cards are designed to help consumers manage their money.
- Create Opportunity: The cards provide consumers with the opportunity to make educated decisions about their finances and learn skills that will provide benefits for the rest of their lives.
According to CFSI’s press release announcing our commitment, “By using the Compass Principles, organizations involved in financial services can be profitable while at the same time help customers make day-to-day progress in the short term and build assets for the future.”
Each of these principles integrates with NCTC’s goal of helping the clients of VITA sites develop sustainable financial practices. To learn more about the NCTC prepaid debit card initiative, visit the project webpage.
By Brenna Murphy, Communications & Member Relations Intern