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Technology the Key for Reaching the Underbanked
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analyzethis
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analyzethis,
User Rank: Apprentice
3/1/2013 | 7:21:27 PM
re: Technology the Key for Reaching the Underbanked
The under banked don't want an account that allows over drafts. They also don't want a prepaid account that charges them $4-$5 to deposit cash.

Several banks and at least 2 prepaid but not Banks companies are now offering accounts just like these. Chase, US Bank, Regions, PNC, along with the Amex Bluebird and Green Dot's GoBank are the ones that come to mind.

90% of the Banks don't care to offer these accounts or their legacy software is old and incapable of offering the option.
Jer Trihouse
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Jer Trihouse,
User Rank: Apprentice
3/1/2013 | 12:01:14 AM
re: Technology the Key for Reaching the Underbanked
What a load of manure. Banks want to do business with the "under-banked? Develop a product! Figure out how to offer credit efficently and inexpensively 24/7. AFS (payday loans, car title, installment...) lenders already figured out the tech piece!

Want our PDL lending rates to decrease? Allow plenty of competition. And allow us to report customers who successfully pay us $45 to borrow $300 for two weeks - as they promise - to the credit bureaus! The online fraud we have to deal with is insane.

With all due respect Hamid, get out from behind your computer screen and "jump into the trenches."

Otherwise, great article :o)
doug johnson
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doug johnson,
User Rank: Apprentice
2/28/2013 | 11:44:59 PM
re: Technology the Key for Reaching the Underbanked
I read that the payday loans market in the US represents up to 16 Billion annually in short term (high interest) loans. Profit on these transactions is 3+ Billion annually. While the under banked may be dealing in dimes and nickels, those small transactions are certainly substantial and they are clearly a customer base that needs to be serviced and supported - even if the big banks don't want to do it.
Greg Lee
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Greg Lee,
User Rank: Apprentice
2/27/2013 | 5:43:18 AM
re: Technology the Key for Reaching the Underbanked
"Though much of the underbanked population is low-to-moderate income, donG«÷t confuse a lack of income with a lack of sophistication."

That is an excellent point in this article.

Also, because a person maybe lower income today doesn't mean they'll be that way throughout their lifetime.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
2/26/2013 | 9:47:25 PM
re: Technology the Key for Reaching the Underbanked
Another important area for underbanked consumers is often international payments. A lot of immigrants are underbanked and frequently send money overseas. A number of non-bank providers are starting to use mobile to help underbanked customers send international payments. It'll be interesting to see if banks reach otu to this customer segment with a similar mobile capability.


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