CHICAGO--(BUSINESS WIRE)--Today, the Center for Financial Services Innovation announced the results from its first effort to catalog all existing financial products and services aimed at the underbanked population: the Underbanked Industry Scan. Through a survey to a spectrum of suppliers to the underbanked market, CFSI gathered information including new details about specific product offerings, provider results, and customer usage of products.
High-level findings include:
- The market for underbanked services is anticipated to grow in the next two years, and providers plan to expand their product offerings accordingly.
- For-profit respondents are more optimistic about growth in the underbanked financial services market – and growth in overall customer demand – than nonprofits.
- Slightly more than half of respondents expect overall competition for underbanked consumers to increase.
- For-profit respondents were significantly more likely than nonprofit respondents to indicate that competition will increase.
The survey, which will be fielded on a recurring basis, also uncovers industry participants’ perceptions of the key trends, opportunities, and challenges in serving underbanked consumers. “Over time, the findings of the industry scan will enable CFSI to measure, benchmark, and track changes in the supply of high-quality financial products and services for the underbanked,” said Rachel Schneider, Vice President, Innovation and Research, at the Center for Financial Services Innovation.
CFSI received 171 responses out of a total of 600 eligible organizations, representing a response rate of approximately 29%. “The findings showcase the insights, prospects, and product offerings of a range of financial providers – banks, credit unions, prepaid providers, nonprofit providers, retail financial services outlets, check cashers, payday lenders, and other direct suppliers of products and services – to the underbanked population. Among the respondents to the survey are several of the largest players in the market today, including three of the top four prepaid providers and four of the top five banks in the U.S.,” says Schneider. “This is a robust participation rate for a survey of this kind – a census of an entire population of providers.”
This work was generously funded by the Ford Foundation.
For more information about the Underbanked Industry Scan, please visit www.cfsinnovation.com.
The center for Financial Services Innovation is the nation’s leading authority on financial services for underbanked consumers. Since 2004, its programs have focused on informing, connecting, and investing – gathering enhanced intelligence, brokering and supporting productive industry relationships, and fostering best-in-class products and strategies. CFSI works with leaders and innovators in the business, government and nonprofit sectors to transform the financial services landscape. For more on CFSI, go to www.cfsinnovation.com.