NEW YORK - A leading market research firm says that its surveys are showing that people without bank accounts are often still users of some sort of credit card, whether from a retail store, oil company or financial institution. Scarborough Research said its surveys of 200,000 adult consumers in 75 metropolitan locations in the U.S. found that 22% of the men and women who don't have a relationship with a financial institution nonetheless used a credit card in the past three months. Visa is the preferred brand, the survey found, with roughly 13% or about 1.3 million consumers without bank accounts using a Visa card in the last three months. The primary candidates for cards among those without accounts are the young and lower income, the firm said. "The unbanked are young, tend to be ethnic and just starting out. Credit cards are an important transaction option as they do not have basic financial services, like checking accounts, established yet," said Karla Horton, manager with Scarborough. "Credit card companies aggressively target the younger age group. Often, credit card applications are widely available on college campuses and in malls. Banks and credit card brands who establish relationships with these younger consumers may have an advantage when they are ready to begin using other financial services."
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, click the "Reprints" link at the top of any article.
From the March-22, 2006 issue of Credit Union Times Magazine • Subscribe!
Research Says Unbanked Still Use Credit Cards
Want the latest credit union news?
Sign up for our free newsletter today! All the breaking credit union news and information you need to make the right decision for your credit union delivered to your inbox. For free!
Thanks for subscribing, you will start receiving the Daily News Alert tomorrow!
Comments
Resource Center
View All »
FFIEC Proposed Guidance on Social Media and How it Affects...
To learn how you and your institution can stay compliant with the new proposed FFIEC...
The Rise of "Mobile Commerce" and How it Affects YOU!
Could plastic cards become a thing of the past? This white paper explains what constitutes...
Key Indicators of High Performing Credit Unions
Get a complimentary demo of our loan portfolio analytics and access to the white paper,...
