Do you still have a bank account? For a growing number of
Americans, the answer to this simple question is no. According to The Washington Post,
821,000 households completely opted out of the banking system between 2009 and
2011, growing the unbanked population to 8.2 percent of U.S. households. Equally
shocking is that 17 million adults are without a checking or savings account
and another 51 million use a bank in combination with payday lenders or
rent-to-own services. This second group, known as the underbanked, has grown to
20.1 percent of U.S. households.
To understand these growing segments, The Integer Group®
recently conducted research among the underbanked across the U.S. to see their
perspective as shoppers of financial services. We discovered that the
underbanked have a love/hate relationship with banking. They love howbanks
treat them like respected customers; while alternative financial services
companies, like check cashing stores and payday lenders, often treat them as
inferior. For example, with prepaid cards, banks often strive to put the
customer’s full name on the card. The same prepaid card from an alternative
financial institution might print only the default “valued customer” title on
the card. It’s hard to feel valued when your name isn’t even used. On the other
hand, underbanked customers often felt there was a lack of transparency from
banks. They understood the bank’s need for fees and minimums with various
services; however, they can’t stand a fee they did not expectand account for
in their budget. They demand transparency up front from the bank. Respect and
transparency are two key elements the underbanked are shopping for when dealing
with banks.
Simple steps can be taken to capitalize on the large opportunity that has arisen with the underbanked. By understanding how the underbanked are shopping for financial services, we are better able to comprehend their approach to the category both functionally and emotionally.
Photo Source: Flickr


