An executive with a firm which collects data on financiallyunderservedU.S. consumers maintains that Americans without standard bankingrelationships or with thin or non-existent credit historiesrepresent an enormous overlooked opportunity for credit unions andbanks.
|The question is not whether credit unions can afford to servefinancially underserved Americans, contended Greg Rable, CEO ofFactorTrust, an aggregator of data on financially underservedconsumers, but whether they can afford not to do so.
|Rable's Atlanta-based firm pointed to a number of factors toback up its assertion, including that consumers without standardbanking relationships represent more than $1 trillion in annualincome and have an average monthly income exceeding $3,000.
|In addition, 54% of American consumers who take out paydayadvance or equivalent loans have a major credit card and 32% owntheir own homes, Factor Trust said.
|Further, these consumers would likely, as Mississippi's Hope Credit Union also asserts, also be open to mobile bankingas 91% of financially underserved Americans have mobile phones and57% have smart phones, Factor Trust said.
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