Compass Principles - Guiding Excellence in Financial Services

Guiding Excellence in Financial Services

The Compass Principles are guidelines for the U.S. financial services industry. They affirm standards of excellence in the design and delivery of basic tools that people use to manage their daily financial lives, such as checking and savings accounts, prepaid cards, and small-dollar loans. Each Principle is described further below, including a sample of indicative practices along with examples of how the principles might be applied to transaction, credit, and savings products.

EMBRACE INCLUSION: Responsibly Expand Access Consumers, including those from traditionally underserved groups or communities, are creatively reached and well served with a relevant suite of quality, affordable financial services that promote consumer choice and are provided in a safe, dignified, and convenient manner.

BUILD TRUST: Develop Mutually Beneficial Products that Deliver Clear and Consistent Value Consumers can clearly understand and derive value, without pitfalls or unwelcome surprises, from financial products designed to align provider and consumer goals.

PROMOTE SUCCESS: Drive Positive Consumer Behavior through Smart Design and Communication Consumers are empowered to make wise money choices via smart product design and guidance that is relevant to their specific concerns and financial situations, coincides in a timely fashion with key life events or decisions, and is immediately actionable.

CREATE OPPORTUNITY: Provide Options for Upward Mobility Consumers have appropriate options that create opportunities for increased financial prosperity, and they are encouraged to pursue those opportunities.

By Rachel Schneider, Romy F. Parzick