Thursday, June 16, 2011

Lost in Translation Study: New Underbanked Stats for Prepaid

The University of Virginia Darden School of Business and Tayloe Murphy Center released the findings of a major study yesterday that outlines specific steps for how banks and credit unions can capture billions of dollars in deposits by reaching out to Latino and other “unbanked” households across the United States.

The year-long study titled “Perdido En La Traducción: The Opportunity in Financial Services for Latinos has a lot of interesting stats for those in the Prepaid industry to explore:

The study focuses on unbanked Latino households in Virginia and North Carolina. Latinos are the fastest- growing multi-ethnic group in many states, including Virginia, as well as nationwide. Many of the findings can also be applied nationally to any household that is unbanked, regardless of ethnicity, background, geographic location or length or status of residence.
The Latino Market in Virginia:

Virginia has 39,000 unbanked Latino households producing some $23,500 each in annual income.

Conservative estimates put the amount of money that could circulate through Virginia’s banking system due — strictly — to welcoming Latinos into traditional financial services at $917 million annually.

Recommendations from the study to address some of the issues include:

Utilize and expand mobile banking platforms
Demographics matter - know your consumer
Directly address the risks of crime - and benefits of security
Recognize and leverage the residential segregation of ethnic groups
Build on social and reputational networks
Utilize knowledge from public servants
Financial education

To read the complete study, click here.

Explore the topic: Share your thoughts below...
How is the Prepaid industry addressing these issues and attracting the underbanked consumer? Is the industry moving fast enough compared to the needs of the consumer? What are the major challenges?

Valerie M. Russo is a Senior Social Media Strategist at IIR USA with a technology, anthropology, marketing and publishing business acumen. She is a published poet and also maintains a literary blog. She may be reached at Follow her@Literanista. You can meet her in person at Prepaid Expo USA 2012.

Share this article with your social network, just click below to share now!

No comments: