Leading Topics
- Trends (42)
- Customer Acquisition and Retention (42)
- Customer Experience (41)
- Technology (33)
- Account Opening (29)
Keyword Tag Cloud
Alternative Data Analytic Models Automation Branch Banking Cost Reduction Credit Card Credit Card Regulations Credit Risk Policy Cross-sell Customer Intimacy Customer Service debit card Decisioning Demand Deposit Account Durbin Amendment Financial Crisis Fraud Generation Y Innovation Instant Prescreen IT Investment Lifestyle Banking Loan Origination System Mobile Banking Online Banking Reputation Management Risk Management Transparency Trust UnderbankedBlogs We Love
Archives
Tag Archives: Underbanked
A Tale of Two Banks: Breaking into the Underbanked Market
Topics: Account Opening, Customer Acquisition and Retention
Tagged: Alternative Data, Automation, Credit Card, Underbanked
Financial industry experts love to talk about the underbanked consumer population. It’s a great opportunity for banks to acquire new accounts! It’s an untapped oil well of 43 million profitable customers!
The truth, as always, is more complicated. The reality is that most underbanked consumers are underbanked for a variety of good reasons. They might… Continue reading →
Insourcing: The Value of Internal Data in Credit Risk and Cross-sell
Topics: Credit Risk Management
Tagged: Alternative Data, Credit Risk Policy, Cross-sell, Underbanked
In our business we talk about credit risk management everyday and assist our financial services clients with keeping up with their strategies to manage the ever changing credit environment. Part of what makes our company unique is that we work with a broad array of data solution providers that give our clients the ability to… Continue reading →
Maintaining Product Relevance is Key To Success, Especially with Gen Y Consumers
Topics: Account Opening, Customer Acquisition and Retention, Trends
Tagged: Customer Service, Lifestyle Banking, Transparency, Underbanked
I’ve written before about the idea that our banking products need to be relevant before underbanked consumers will adopt them. As new regulations pressure our industry as never before, the risk of further losing relevance is great. In fact, we face a perfect storm today. Fee income is decreasing, compliance costs are increasing, and Gen… Continue reading →
Montana Outlaws Payday Lenders
Topics: Regulations
Tagged: Payday Lenders, Transparency, Underbanked
Here in Montana we passed an interesting initiative. Payday lenders are now restricted to charging no more than 36% APR in interest and fees. This protects vulnerable consumers from the previous predatory payday rates that were capped at 400%. In effect, this law outlaws payday lending—unless lenders can figure out how to stay profitable making… Continue reading →
Underbanked IS the Market: Gen Y Changes the Rules
Topics: Customer Acquisition and Retention, Customer Experience, Trends
Tagged: Generation Y, Lifestyle Banking, Trust, Underbanked
It just occurred to me that a curious shift has happened in the under-banked market. My employer, Zoot Enterprises, has supported lenders in the under-banked market for some time. Part of our value to our clients is that we provide streamlined connectivity to alternative data sources, often to help lenders approve credit for unbanked and… Continue reading →
Transparency: What are Banks Missing?
Topics: Customer Acquisition and Retention
Tagged: Lifestyle Banking, Transparency, Trust, Underbanked
During the Card Forum show, Susan Ehrlich, SVP and President, Sears Financial Services, shared a unique perspective on the consumers that many lenders refer to as underbanked. To her, they are simply customers, although they need different products than more mainstream banking clients. In fact, she says, they are in this group because they don’t… Continue reading →
The Portrait of a Thin File
Topics: Customer Acquisition and Retention, Trends
Tagged: Alternative Data, Credit Risk Policy, Customer Service, Underbanked
The thin file/underbanked market represents a significant revenue opportunity for financial institutions (FIs). These consumers do not, contrary to popular belief, pose any greater risk than the general banked population. Many are simply individuals that have had limited interaction with financial institutions but who could benefit from additional financial products and services. How do I… Continue reading →
Mobile Phones: The New Credit Cards? How Mpayments Could Replace Lost Revenue
Topics: Customer Experience, Technology, Trends
Tagged: CARD Act, Credit Card, Mobile Banking, Underbanked
With the passage of the recent Credit Card Accountability, Responsibility, and Disclose Act (C.A.R.D. Act), the once thriving trillion-dollar credit card industry is now looking like a barren wasteland, for consumers and for financial institutions (FIs). Gone are the days of easy credit and rewards programs, replaced instead with an era where “card” is the… Continue reading →