NetSpend 2010 Annual Report Download - page 8

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Table of Contents
Competitive Strengths
We believe that our competitive strengths include the following:
Extensive Knowledge of Underbanked Consumers
Since 2001, we have served more than seven million underbanked consumers and have developed a database of more than 34 million
consumers who we believe are underbanked. The experience we have gained and the data we have gathered have allowed us to develop
extensive knowledge regarding the attitudes, characteristics and purchasing behavior of underbanked consumers. We have utilized this
knowledge to develop a robust portfolio of products and services that we believe not only attracts underbanked consumers as new cardholders,
but also drives longer cardholder retention.
Valuable and Loyal Customer Base
We believe we have achieved one of the highest average cardholder lifetimes among GPR card providers. Our promotion of direct deposit
and our product suite provide consumers a consistent and affordable financial services solution and increase the lifetime value of the customer
relationship.
Extensive and Diverse Distribution and Reload Network
We have built an extensive distribution and reload network throughout the U.S. comprised of diverse categories of retailers, our own
direct-to-consumer and online marketing programs and corporate employers, which allows us to reach a large number of underbanked
consumers and reduce our dependency on any single channel or distributor.
End
-to-End, Scalable and Proprietary Technology Platform
We believe that the full integration of our program management and transaction processing operations into a single end-to-
end operational
and technology platform is unique among the leading GPR card providers. This platform provides us with a competitive advantage derived
from attractive economies of scale, flexible product development capabilities and speed to market with differentiated product offerings.
Further, by processing transactions on our own platform, we gain unique and extensive insight into the attitudes, characteristics and purchasing
behavior of underbanked consumers, which allows us to better tailor our products and services to this consumer segment.
Strong Regulatory Compliance
As a provider of prepaid debit cards targeting underbanked consumers since 2001, we have acquired extensive knowledge about the
unique characteristics of prepaid debit card programs for underbanked consumers. We have incorporated that knowledge into our proprietary
regulatory and risk management systems. Working closely with our issuing banks and distributors, we have developed systems and processes
designed to comply with rigorous federal regulatory standards for anti-money laundering and consumer protection in a manner adapted to the
unique characteristics of our programs.
Proven and Experienced Management Team
We have assembled an executive team with substantial public company experience in financial services, payment systems, retail program
management, direct marketing and technology. We believe that the strength and experience of our management team has helped us attract and
retain our cardholders and distributors and create a differentiated product offering, contributing to our significant growth.
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