Even underbanked consumers who have basic banking relationships say they want broader access to mainstream financial products, according to a recent survey.
The study, which was released this week at the Underbanked Financial Services Forum in Dallas, found that underbanked consumers on average cash 20 checks per year, with a mean value of $452. Furthermore, 60% of the those in the survey had a checking account, and 45% had a savings account.
Thirty percent of those who lacked a checking account said they would like to open one in the next year, and 39% said they would like to open a savings account in the same period. At least half of the 760 participants said they would like to open a cash deposit, college, or retirement account in the next five years, and more than one-third would like to get a loan in that period.
The study, sponsored by the Center for Financial Services Innovation, a nonprofit affiliate of Chicago's ShoreBank Corp., and KeyCorp of Cleveland, suggests that financial services providers should devise creative strategies for serving the underbanked.
"Simply offering check-cashing services at a lower cost is not enough," wrote Jennifer Tescher, the director of CFSI and the study's author. "By understanding who these consumers are and how they make decisions, banks can develop appropriate services for them and, in time, lasting relationships that are a win for both parties."
