Aite Says It Isn't...
Aite debunks unbanked, underbanked myths
Boston, Feb. 4, 2009 -- A new report from Aite Group, LLC debunks 10 myths commonly held by bank executives, regulators and consumer advocates about unbanked and underbanked consumers. The analysis is based on a 400-person survey with consumers at check-cashing stores, completed in November and December of 2008.
Among the myths debunked by the report is the belief that consumers are unbanked or underbanked because of cultural and attitudinal reasons. Instead, it reveals that people are unbanked for very practical reasons, including credit, pricing, cash flow and service issues. Fifty-three percent of unbanked consumers in Aite Group's survey are impeded by credit issues, while an additional 28% face pricing issues with checking accounts, 12% are impeded by cash flow issues, and 7% constrained by service issues.
"Consumers that are underbanked and unbanked often choose to be so for practical reasons rather than attitudinal ones," says Gwenn Bézard, research director with Aite Group and co-author of this report. "Greater education and marketing wizardry is unlikely to succeed in attracting this group to checking account relationships. The only way for banks to seriously compete is to deliver a better product and value proposition."
This 29-page Impact Note contains 22 figures. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right. Related Aite Group Research:
* Nine for '09: Opportunities and Challenges for Banks in 2009
* Mobile Banking for the Underbanked: Lessons from Africa
* Competing in Money Transfers
To purchase this report or for additional information, please contact: Aite Group Sales Tel: +1.617.338.6050 sales@aitegroup.com
About Aite Group, LLC Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. It was founded by leading industry experts in Banking and Securities & Investments. Aite Group brings together a team of business strategy, technology and regulatory experts to deliver comprehensive, timely and actionable advice to financial institutions and technology vendors. It seeks to become a true partner, advisor and catalyst by exchanging ideas with and challenging basic assumptions of its clients, ensuring that they always stay one step ahead of the competition.
Source: Company press release.
