Article

Who's who: Jennifer Tescher's unbridled spirit drives CFSI

Jennifer Tescher is reaching out to underserved consumers, one company at a time.

November 6, 2006 by Valerie Killifer — senior editor, NetWorld Alliance

In 2004, Jennifer Tescher launched the Chicago-based ShoreBank non-profit organization, The Center for Financial Services Innovation. The organization is designed to help financial institutions in the United States build relationships with the country's estimated 44 million unbanked and underbanked consumers.

Through her work at the center, Tescher has formed alliances with companies such as Tio Networks Corp. and has profitably brought banking services to unbanked and underbanked markets.

Although the center does not work directly with consumers, Tescher has been able to put into practice her quest to help the underserved population.

A twist of fate

When Tescher accepted an internship at ShoreBank in 1996, she didn't know the company would propel her into improving underserved communities.

At the time, Tescher was working as a journalist and had planned to use her journalism background to help the underserved. Now she's using financial muscle.

Jennifer Tescher and daughter, Lillian.

"ShoreBank is pretty much an innovator in trying to serve markets and communities that don't get a lot of attention, and doing it in a profitable way," she said. "It's an unusual structure, and they're probably one of the only banks that has a non-profit."

Tescher never planned on a career in banking; but after getting her foot in the door, she realized she could make a difference.

"I chose banking as a powerful tool for improving communities and the lives of individuals," she said.

For nearly two years, Tescher has spent her time educating banking professionals about how they can reach the underserved segment. She often discusses how FIs can best use ATM and self-service devices.

"I think that ATMs and other self-service devices hold significant promise for delivering a broad range of services for those consumers in a cost effective fashion. It's providing greater access for consumers, but it has the ability to increase transaction volumes for machines at a time when transactions are down and continue to decline," she said. "Deposit automation and other technological advances, such as dispensing coins and cards and other things, are what makes this an interesting opportunity."

A helping hand

For the first few years, Tescher was unsure if the center would succeed. She initially operated it as a project, but in January it became its own legal entity.

This market opportunity presents a potential source of organic growth. Unbanked consumers show themselves to be highly loyal customers. If treated properly, I think these consumers are customers for life.

- Jennifer Tescher, CFSI

"We have stayed true to the organizational plan, and it's really heartening to see so much interest, and now action, around this issue," Tescher said. "I think ultimate success would mean underbanked consumers would have access to a broad menu of well-priced, well-structured and delivered financial services. By having access to those opportunities, they are in a better position to build wealth for themselves and their families."

Tescher said FIs are increasingly interested in services that tap the unbanked and underbanked segment, which is why the center works with a variety of companies that target that market.

CFSI is an investor in Tio Networks Corp., formerly Info Touch Technologies Inc. Tescher has described the relationship as mutually beneficial.

"One of the main reasons why we decided to invest in them is because we think self-service has great potential," Tescher said. "Tio, among the field, really had the best shot."

CFSI also has invested in Waltham-Mass.-based CircleLending, a provider of interpersonal loan management.

A third investment contract is pending.

"These are very small investments; but it enables us to see lots of interesting companies and lots of interesting ideas," she said.

Tio Networks president and chief executive Hamed Shahbazi said Tescher has been able to legitimize the importance of bringing services to the underserved segment.

"If you look at CFSI, they're not about passive giving," Shahbazi said. "Everything from them is centered around sustainability. Jennifer is very aware of her surroundings and the industry. We do have a socially responsible mandate for this business. It's good to be profitable; but it's profitable to be good."

Blazing the trail
Jennifer Tescher
Director, Center for Financial Services Innovation

Education:Northwestern University, B.A. and graduate degrees in journalism; University of Chicago, master's in public policy

Born: Port Chester, N.Y.

Age: 35

Family: Husband, Jonathan Eig; son, Jeffery, 16; daughter, Lillian, 3

Hobbies: Cooking, spending time with her children and reading

Favorite musician: Van Morrison

Tescher's ability to blaze the CFSI trail stems from a personal sense of adventure.

"She tries things totally out of nowhere even though she's never had any training or interest in it before," said Jonathan Eig, Tescher's husband of 10 years. "She's very brave in that she'll try anything and trying the nonprofit is one example."

Tescher's unbridled spirit has led her to rock climbing, kayaking and sculling.

"In some ways she's very conservative. But she's got this streak that she can do something when she puts her mind to it," Eig said.

Tescher's focus for the last 10 years has been on providing financial services for a population segment very few try to target.

"This market opportunity presents a potential source of organic growth. Unbanked consumers show themselves to be highly loyal customers. If treated properly, I think these consumers are customers for life," Tescher said.