-Report looks at U.S. underbanked consumer financial services market.
BANKING AND CREDIT NEWS-November 2, 2012--Report looks at U.S. underbanked consumer financial services market(C)2012 M2 COMMUNICATIONS http://www.m2.com
2 November 2012 --The U.S.-based Center for Financial Services Innovation and Core Innovation Capital said they have released their second annual underbanked market sizing brief, which illustrates the range of opportunities for institutions seeking to develop affordable financial solutions in the marketplace.
According to the Center, the report, which benefits from strategic input and financial support from Morgan Stanley, encompasses 22 financial product types utilized by over 68 m underbanked consumers in the United States.
The new data reveals revenue gained from interest and fees paid by underbanked consumers rose to USD 78b in 2011, a seven percent increase from comparable 2010 data. This revenue was generated from an overall market volume of USD 682b in principal loaned, funds transacted, deposits held, and other financial services rendered.
According to the report, the industry continues to show growth in short-term credit and payments categories, as these sectors capitalize on technological advances, respond to regulatory changes and address the needs of consumers in a post-recessionary economy.
At the financial product level, the strongest growth came from subprime credit cards, internet payday loans, and open-loop prepaid cards, with each product demonstrating gains greater than 21% versus 2010.
CFSI and Core Innovation Capital project market growth to continue - the report forecasts underbanked consumers will generate revenues of more than USD 85b in 2012.
The brief offers industry leaders an overall perspective of the underbanked landscape, and highlights opportunities to leverage new developments in the financial products market.
For more information or to download the research report detailing the methodology behind the data, go to http://cfsinnovation.com/content/2011-underbanked-market-sizing-study.
For more on CFSI, visit www.cfsinnovation.com.
1 USD = 0.623489 GBP
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Nov 2, 2012|
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