USPS Community Finance
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This project focuses on bringing back the USPS Banking services that were offered from 1911 to 1966.
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This project is meant to be able to reach a large and wide audience. Finding ways for our solutions to be accessible to all was a challenge.
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Our approach was the introduction of multiple touchpoints for the USPS Banking extension. A mobile app, an ATM with the ability to give small loans, mail-in deposit slips, educational brochures, and branded debit and credit cards are all introduced.
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Research: Melody Barron, Alexis Contreras, Kayla Mckee, Violet Mutuc
Mail-In Slips: Alexis Contreras, Kayla Mckee
Brochures: Violet Mutuc
Cards: Kayla Mckee
ATM UI/UX: Kayla Mckee
App UI/UX: Melody Barron, Kayla Mckee
Research
Let’s Get into it
Unbanked and Underbanked
What does it mean to be unbanked?
Being unbanked refers to households where no one holds a savings or checking account. According to the 2019 FDIC Survey of Household Use of Banking and Financial Services, this accounts for about 5.4% of the U.S. population. Without access to traditional banking, unbanked individuals rely on alternative financial services like payday loans, check cashing, money orders, and pawn shop loans to manage their finances. Unfortunately, many of these services are costly—sometimes even predatory—leading to cycles of debt that can be difficult to escape.
What can we do?
Bring back USPS Banking services.
From 1911 to 1966, the USPS provided banking services, helping many unbanked and underbanked individuals during that time. Reintroducing these services today could offer similar benefits. By leveraging the USPS’s nationwide reach—serving even the most remote communities—we can bring banking services to people where they are. This approach would make it easier to provide individuals with their first bank account or give them another chance at re-entering the banking system, regardless of their past experiences.
Sprint Questions
Goal Statement
Bring a simple and easy experience to acquiring and distributing funds online and physically at the nearest postal office, offer educational programs that teaches the members about financial management skills, and take away the difficulties and unnecessary expenses that come with not having a bank.
Sprint Questions
Q: If we want to offer educational programs what has to be true?
A: Make sure it is accessible and easy to understand.
Q: If we want to make it a simple and easy experience what has to be true?
A: Be sure it is accessible and cheap
Q: If we want to take away the difficulties and expenses, what has to be true?
A: Make sure to research what members pay now and what their past experience was to avoid the same problems.
Q: If we want to get new customers, what has to be true?
A: Make sure to develop a user-friendly layout that anybody can understand.
How Might We
The questions that started it all
HMW
Make financial programs accessible for those experiencing language barriers?
HMW
Be transparent and have the user trust us?
HMW
Educate people on the loan process, fees and interest rates associated with them?
HMW
Offer loans to credit invisible members?
HMW
Take advantage of existing postal services?
HMW
Reward members for completing financial workshops and programs?
Meet Derek
Derek is a full time host at a local restaurant in Houston, Texas. Currently single and no kids. Pays rent with roommates on an apartment. He mainly uses public transit. Sometimes he comes up short on his bills. He was also blacklisted, and is denied from having a traditional bank account due to past mistakes, but he wants to learn how to correct them.
Goals
Eventually hold a traditional bank account
Learn responsible money habits
Build credit
Pain Points
Dislikes having to ask a friend to cover him until payday
Doesn’t understand most banking information
Has too low of credit to apply for a loan anywhere
Motivations
Saving up to buy a car
Saving to become a homeowner
Not living paycheck paycheck
Meet Ashley
Ashley is a part-time grocery store cashier in Phoenix, AZ. Single, and still lives with their parents, but hopes to move out to an apartment soon. She puts their checks onto a prepaid card every week because she is afraid of credit and debit cars because she feels too uneducated about them.
Goals
Build good credit
Get into a good college
Live independently
Pain Points
Not understanding how credit works
Finds banking intimidating
Dislikes having to go to the store to refill pre-paid card
Has parents that distrust banks
Motivations
Save enough for an apartment deposit
saving for college classes
Meet Eddy
Eddy is a retired construction worker in New York City, and receives a paper social security check monthly. He is handicapped, and also receives a disability check. He uses the subway and bus system to get around and usually cashes checks at local gas stations. He uses almost exclusively cash to make payments.
Goals
Find an easier way to cash checks
Learn better budgeting skills
Start learning how to use credit and debit cards
Pain Points
Having to travel weekly to cash checks
Unable to reach most banking services because they’re online
Feels behind on technological advances
Language barrier inhibits some interactions with others
Motivations
Enjoying independence
Having lots of free time
Survey Shows…..
We sent out a survey to hear directly from those who are unbanked or underbanked. The results are in, check them out!
How do you pay your bills?
Key Takeaway:
Money Orders and Cashier checks can charge fees every time they are used. Our goal is to provide a way to pay bills that doesn’t charge these additional fees that can range from $3 to $6 per use.
What bank services do you feel like you’re missing out on?
Key Takeaway:
Interest occurring savings account, and direct deposit were the top answers that unbanked folks feel like they are missing out on. Having a reliable place to store your money is essential!
Where do you deposit your checks?
Key Takeaway:
We want to accommodate those who can’t, or don’t want to, have to leave the house to handle their financials. This is something that could benefit those who are handicapped or those who rely on public transportation.
Could a small loan, $100 to $1000, benefit you?
Key Takeaway:
It seems that everyone would benefit or maybe benefit from having the ability to acquire small loans. We had no one mark “No”, so we will be sure to include this option in our solution.
User’s top needs
A better, cheaper, more accessible way to cash their checks and pay their bills
Easy ability to acquire loans that don’t have predatory interests rates or hidden fees
An introduction to the banking system and introductions to good financial management practices
Easy access to all their finances like their balance, cards and loans.
A way to build credit and save up money
The Solutions
Brochures
We want to ensure that everyone who is using our services understands them and how they work. We also wanted to provide an easy way to teach the user important financial management skills, so that one day they could graduate from the USPS Community Financial bank if they wanted to, and they would have the confidence and knowledge to do so. These brochures will highlight important class opportunities that the user can take to gain even more knowledge.
They will be available in paper and digitally, and be available in other languages to reach a larger audience. The user can be sent these in the mail, pick one up at the post office, or view it on the app.
Mail-in Slips
We wanted to accommodate those who can’t or don’t want to have to leave the house to handle their financials. This is something that could benefit those who are handicapped or those who rely on public transportation. With these envelopes, the user could mail in their checks or cash to be deposited into their account.
The user would pick up or request these envelopes from the Post Office, and they would cost 50 cents for the deposit envelope, and they could be bought in packs for convenience. This low charge would replace the fees that they would pay when they cash their checks, which normally range from around $3–$6 each check.
Credit, Debit and Pre-paid Cards
Besides providing a safer way to hold money, we want our debit card to help the user even more, by offering a round-up program that they can enable on the app. When they enable this feature, every time they swipe their card, the amount will be rounded up to the nearest dollar and that extra change that was rounded up will be deposited into their savings account automatically.
Our credit card that we are providing will help the user build their credit and teach important financial management skills. They will start out with a low limit, and after 6 months of on time payments, their limit can be raised if they choose to have it raised.
The Prepaid card will help those who are blacklisted. They will be able to pay bills, and use it like a traditional debit card, but it will provide a way for the user to show proof of rotating payments to show banks that they could keep up with payments and proof of income.
ATM
We thought that a convenient way for the user to acquire a loan could be at an ATM, which would be located at the post offices. These loans would be micro loans meant to help those who need cash very quickly to keep them afloat, like to help cover an flat tire, or maybe a grocery trip.
The user can take up to $100 at the ATM, if they need anymore they would need to go through the app to apply, make a request by mail, or they can apply with a postal worker at the Post Office. The user would have 30 days to pay back the loan before interest would start to accumulate on the loan.
Mobile App
We chose to do an app because an app allows for some features that a website (especially a desktop version) doesn’t allow, for example the option to take a picture of their check to be automatically deposited.
The app will have the ability to take care of all of the users top needs in one place, with features like access to the users account balances, money transferring options, access to credit score, ability to apply for loans and credit card, options to set up automatic billing, ability to deposit checks instantly, and a learning tab for easy access to financial programs
