In an earlier post, Ankush examined the dynamics and credit quality of the underbanked population. You learned about the characteristics of these consumers and their usage of credit card, auto, retail, home equity and other types of loans. This week, we explore why this market is a growth opportunity. Here are a few things to consider:
- Approximately 25 percent of American adults—as many as 70 to 90 million individuals—lack sufficient credit information to generate a traditional credit bureau score.
- The underserved or underbanked population is large, dynamic and represents over $1 trillion in buying power.
- Traditional prime and super-prime markets are oversaturated.
We’d love to hear more from you on this topic and your experiences. In the mean time, get more facts, details, and research in the white paper: Successfully Lend to the Underbanked Consumer. Financial institutions that can learn how to successfully lend to underbanked consumers will be able to tap into a sizeable growth opportunity. Click here to download the complete White Paper.