Underbanked, But Not for Long

Financial institutions and tech firms are working to use mobility and analytics tied to prepaid cards to reach underbanked consumers

Image source: Flickr

Financial institutions can spot healthy customers among prepaid users to grow deposits and, eventually, credit and loan accounts.

At the same time, consumers escape the high fees of payday lending and check cashing businesses, a chronic problem that can prevent consumers from establishing a track record that makes them more attractive to banks.

The bottom line: New mobile and data analysis technologies and processes are making it easier to reach underbanked consumers. Read the full article to see how your Credit Union fits in.