They are spending a lot, just not with you.
Though they use banks very little or not at all, these consumers do use financial products and services. It is a market segment that generated an estimated $107 billion in fee and interest revenue during 2014, up 4.6% from the prior year, according to estimates from the Center for Financial Services Innovation.
Two recent studies offered some key insights about these so-called "underbanked" and "unbanked" consumers. Here is a quick overview, with charts to illustrate.
(Image: Bloomberg News)
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Sorry, banks, 28% of consumers are taking some or all of their business elsewhere.
Also, 7.7% of U.S. households were unbanked in 2013. This represented nearly 9.6 million households composed of approximately 16.7 million adults and 8.7 million children.
The highest unbanked rates were among non-Asian minorities, lower-income households, younger households, and unemployed households.
For these groups, the unbanked rates in 2013 were generally similar to what they were in 2011. One exception was Hispanic households, for which the unbanked rate decreased to 17.9% in 2013 from 20.1% in 2011.
The FDIC attributed this change largely to an increase in the levels of employment, income and education among Hispanic households.