|
|
 |
|
Viewing report
|
|
|
|
Financial Services and the Underbanked
Global Advertising Strategies, April 2005, Pages: 26
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 are re-building their credit-worthiness.
At first glance, the unbanked may seem like an unattractive market, and banks until the last few years have for the most part ignored them, leaving them to rely on alternative financial service providers, such as check-cashing outlets. Banks are now paying attention to the huge opportunity that the unbanked market represents. The “mainstream” already-banked market is thoroughly saturated with financial products and services, so much so that mailboxes have become filled with credit card offers, and various loyalty programs by financial vendors to retain and add-value to existing customers. Financial institutions are looking for a new frontier of customers, and they are easily finding it in the unbanked.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
