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Financial Services and the Underbanked Product Image

Financial Services and the Underbanked

  • ID: 297175
  • April 2005
  • 26 pages
  • Global Advertising Strategies

This report focuses on unbanked immigrants and ethnic minorities, whose spending on financial products and services will increase by 94 percent in next 4 years. It describes the unbanked as a market segment and explores the reasons why this segment has been reluctant to develop relationships with banks.

For many Americans, to use or not use a bank is never a major consideration. As we come of age, we open a checking account, learn about savings, enroll in multiple credit card programs, and expand financial relationships with banks with educational, car, mortgage, and small business loans. This is “mainstream” America, which tends to be heavily credit leveraged through a complicated web of relationships with many types of financial institutions. Meanwhile, there is a huge sector of Americans who have infrequent or nonexistent relations with financial institutions. This group of “unbanked” Americans comprises more than 13 percent of the 105 million households in the United States. The unbanked are typically immigrants, ethnic minorities, the youth, widows, divorc?es without credit histories in their own names, and people who have filed for bankruptcy and READ MORE >

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I. EXECUTIVE SUMMARY, KEY FINDINGS, METHODOLOGY

1.1 Executive Summary
1.2 Key Findings
1.3 Methodology

II. THE UNDERBANKED: A MARKET SEGMENT DEFINED
2.1 Who Are The Underbanked?
2.2 Industry Context: Financial Institutions Looking For New Markets
2.2.1 Ethnic and Immigrant Banking -
2.2.2 Long term strategy: a remittance customer today could be a small business borrower tomorrow -
2.3 Credit-Scoring Models -
2.3.1 Fair Isaac Corporation's Traditional FICO Score-
2.3.2 Alternative Scoring Models-
2.4 Public Policy And Legislation Targeting The Underbanked -
2.4.1 "Bank on New York" Campaign-

III. PRODUCTS AND SERVICES TARGETING THE UNBANKED
3.1 Traditional Remittance/Money Transfer Companies -
3.2 Banks Offering Money Transfers By ATM
3.3 Stored-Value Cards And Prepaid Cards -
3.4 Payroll Cards -
3.5 New Product And Service Innovations Targeting The Unbanked

IV. MARKETING TO THE UNBANKED
4.1 Perceptions About The Unbanked
4.2 Why Do People Remain Unbanked?
4.3 Marketing Mix For Reaching The Unbanked

V. CONCLUSIONS, RECOMMENDATIONS, AND PREDICTIONS -
VI. PROFILES OF SELECT COMPANIES PROVIDING FINANCIAL SERVICES AND
PRODUCTS TO THE UNBANKED AND UNDERBANKED
6.1 Western Union
6.2 Moneygram
6.3 Bank Of America
6.4 Labe Bank
6.5 Citibank

ABOUT GLOBAL ADVERTISING STRATEGIES
DISCLAIMER -

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Data for this study have been obtained from various sources, including interviews with company executives, financial statements, secondary research from other analysts, and analysis of marketing campaigns by key
players. Descriptive parts of the report contain information from ongoing proprietary research and market analysis that have been conducted in the financial industry since 1999.

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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