Thursday, March 3, 2011
Research and Markets releases findings on underbanked
Dublin, Ireland-based market research firm Research and Markets issued a report that concludes the U.S. underbanked are educated and employed, but remain reluctant to use traditional bankcards primarily due to fears of hidden costs and fees.
The underbanked are defined as people with minimal access to traditional banking products. Low-income wage earners are often considered underbanked. According to Research and Markets' report Wooing the Underbanked, the 43 million underbanked in the United States spend approximately $10.4 billion on over 324 million alternative financial services products, such as money orders and payday loans.
"They make little use of the services provided by mainstream financial institutions; and are limited to traditional banking where they usually have a checking/savings account," Research and Markets said. The report is focused on how prepaid cards can help banks reach this "immense, untapped consumer segment."
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