The unbanked and the underbanked together spend around $10.4 billion on more than 324 million alternate financial services (AFS) products. This is due to lack of knowledge on part of the banks to target and market banking products to the underserved. Economic inclusion of the underbanked population (approximately 43 million in 2009) into the traditional banking cycle will have a significant financial impact on the federally insured banks that have traditionally stayed out of this market. Wooing the Underbanked – Need, Behavior and Attitude Analysis is a market research study designed specifically to profile underbanked populace/households. The aim of this report is to analyze various reasons behind the low adoption of banking products by underbanked and their preference for alternate financial services (AFS) and products (transaction/credit).
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The underbanked are educated and employed but are reluctant to use traditional banking products such as debit / credit cards, short term loans, etc., primarily due to the fear of hidden costs and convenience issues. They make little use of the services provided by the mainstream financial institutions; their use is limited to traditional banking wherein they usually have a checking / savings account. They also frequently use AFS offered by non-banking institutions. The AFS products are non-bank money orders, payday lending, check cashing facilities, rent-to-own agreements and refund anticipation loans.
The objective of the report is to provide vital marketing information about the underbanked that also use AFS products; and the traditional and novel banking and financial services that can be rendered to them by the banks. The report will provide new insights and give recommendations for banks intending to capitalize on this untapped market segment. Intensive bifurcation of the underbanked customers on the lines of income, age, education, region, race, etc. will enable product development and provide a roadmap to the future of novel banking practices for the underbanked.
Scope of the report
Analyst Briefing Presentation on Wooing the Underbanked – Need, Behavior and Attitude to be held on 1st June 2010.
The Banking and Financial Services practice at MarketsandMarkets is pleased to announce its Analyst Briefing Presentation on Wooing the Underbanked – Need, Behavior and Attitude to be held on 1st June 2010. The briefing on wooing the Underbanked - Need, Behavior and Attitude Analysis will benefit banks, non-banks and transaction processors.
To register for this briefing, please click here
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