Risks and Benefits of Pursuing the Underbanked Market
With non-interest income flat for most institutions, and branch traffic in decline, many banks are searching for new markets. For many banks, potential customers are already in the neighborhood, relying on alternative financial services (AFS) such as prepaid cards and check-cashing storefronts instead of banks to manage their finances. Many of today’s AFS customers used to be bank customers. According to surveys by the FDIC, many would like to become bank customers again.
You’ll find Greg’s complete column on the underbanked here.