Grasping the Benefits of Prepaid: A Battle Plan for Banks
Mercator Advisory Group, January 2012, Pages: 23
Mercator Advisory Group’s new report, Grasping the Benefits of Prepaid Financial Services: A Battle Plan for Banks, identifies the primary use cases adopted by consumers who purchase PFS products and analyzes how these products deliver superior liquidity and convenience to cardholders. The report suggests ways that retail financial institutions can compete and recommends a market entry approach that reduces the costs associated with introducing a prepaid financial services product.
Highlights of the report include:
- Evidence that liquidity and convenience trump cost for users of prepaid cards
- Why it is impossible for retail financial institutions to offer the same level of liquidity and convenience as PFS products by expanding branches and utilizing existing demand deposit account pricing structures
- The ways financial institutions can quantify the amount of money their account holders are moving from their checking accounts today to fund prepaid products
- The two primary use cases driving prepaid product growth today, one easily addressed and the other demanding new strategy and a greater investment in resources
“Financial institutions can’t utilize the existing retail outlet model to successfully compete in the LMI market; it simply isn’t sustainable,” says Tim Sloane, director of MercatorAdvisory Group’s Prepaid Advisory Service and author of the report. “When financial institutions better understand how PFS products address the liquidity and convenience requirement of the LMI market, they will also better understand the pricing models prepaid suppliers employ.
Table of Contents
Executive Summary
Introduction
Identifying the Prepaid Financial Services Customer
The Low- and Moderate-Income Market
The Budget Market
Applying the Budget Use Case Scenario to Product Design
The LMI Use Case: Liquidity, Convenience, and Cost
Liquidity
Convenience
Cost
The Universe of Financial Services Aimed at the LMI
Money Orders: Measuring the Failure of Bill Payment Solutions Daily
The Near Term Future: Mobile Wallets and Mobile Check Deposits
A Guide to FIs for Implementing Prepaid Financial Services
Withdrawal Support
Deposit Support
Distribution
Conclusion
Copyright Notice
Figures and Tables
Figure 1: Load Value Placed on Prepaid Financial Services Products, 2007 - 2014E
Figure 2: As Prime and Near Prime Decrease, the LMI Market Increases
Figure 3: 2009 Consumer Research Was First to Identify the Budget Use Case
Figure 4: To Be Considered at All, Services for the LMI Market Segment Must Deliver Liquidity
Figure 5: Comparing Payment Instruments Used to Reload Prepaid Products, 2010
Figure 6: Proximity of Outlets to Mass Transit in Stockton, CA: Bank of America vs. Green Dot
Table 1: Comparing a PFS Product to FDIC Safe Account Guidelines
Figure 7: LMI Consumers Have Several Channels and a Wide Range of Products from Which to Choose
Figure 8: Mobile Check Deposit Will Improve Services to the LMI Population
- 7-Eleven
- AccountNow
- Allpoint
- American Express
- Bank of America
- Blackhawk
- Chase
- Chexar
- Citi
- CSP
- FIS
- Green Dot
- InComm
- K-Mart
- Kroger
- MoneyPass
- NetSpend
- PayPal
- Quick Stop Markets
- RadioShack
- Regions Bank
- Ria
- Rite Aid
- U.S. Bank
- UniRush
- Walgreens
- Walmart
- Wells Fargo
- Western Union
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW4
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
