The Underserved population is a significant market. According to the Federal Deposit Insurance Corporation, (FDIC), nearly one-third of the U.S. population—over 80 million people—are under-served.
- Unbanked – do not have bank accounts and generally use only Alternative Financial Service (AFS), providers such as check cashing establishments, retail stores and the like for financial transactions.
- Underbanked - have a bank account, but also rely on AFS providers.
- There are over 20.6 million under or unbanked Latino consumers in the U.S. This market is more likely to prefer cash as their main method of payment, which means they must rely on alternative financial services for cash-based bill payment, reloading of pre-paid debit cards and other services.
- According to Center for Financial Services Innovation (CFSI), 91% of the underserved population have a mobile phone and 57% of these consumers have smartphones. Apps and other products aimed at the underserved are growing quickly.
Underserved consumers receives approximately $1 Trillion in income and makes $500 Billion in bill payments, translating to:
- 900 million walk-in payments
- $1.5 billion in transaction fees
- A fractured market that has no clear alternative to check cashing stores and money orders
- Prepaid debit cards continue to be more widely used among the underserved than among fully banked households. Overall one in ten households reported use of a prepaid debit card.
- According to ConsumerReports.Org, prepaid cards are no longer just for people who don't have bank accounts. They're the fastest-growing payment method in the U.S., and they're attracting those who want to budget their spending.