October 29, 2014
    2013 FDIC National Survey of Unbanked and Underbanked Households

    According to data provide by the FDIC, the estimated Alternative Financial
    Services transaction volume is $320 billion annually.
    That's a very conservative estimate.
    The FDIC provides the following statistical annual breakdown:  
    •        Buy Here, Pay Here Auto Loans = $80 billion
    •        Check Cashing = $58 billion
    •        Pay Day Loans = $48 billion
    •        Remittances - $46 billion
    •        Open Loop Prepaid Cards = $39 billion
    •        Refund Anticipation Loans = $26 billion
    •        Money Order = $17 billion
    •        Rent-To-Own Transactions = $7 billion

    According to FiSCA estimates, AFS providers:
    •        Process more than 170 m checks per year, totaling more than
               $58 billion.
    •        Sell money orders with a face value of $17.6 billion per year, at
      an average cost of 64 cents each.
    •        Process more than 57 m bill payment transactions, at an average
    cost of 86 cents per transaction.   

    2014 – Federal Reserve Bank of Philadelphia
    Why Do the Unbanked Use Alternative Financial Services?
    By Lisa J. Servon, Ph.D., Professor and Former Dean, Milano School of
    International Affairs, Management, and Urban Policy, The New School, New
    York City

    Subprime Lending Fuels New Credit Growth for Banks, Retailers, Equifax
    Says.
    The biggest credit card growth segment for both bank- and
    retail-issued cards is among subprime borrowers, those with credit scores
    of 660 or lower, according to Equifax, one of the three major credit bureaus.
    New credit card accounts for consumers with
    subprime credit scores have shot up 40 percent so far this year, compared
    to last year, says Amy Crews Cutts, Senior Vice President and Chief
    Economist at Equifax. "As the economy improves,
    consumers appear to be ready to expand, or in some cases, rebuild their
    credit," said Cutts. "... This reflects both consumers' appetite
    for new credit, and lenders' willingness to offer it. "Interestingly, balances
    for both subprime and prime have risen very little,
    suggesting that while consumers are positioning themselves for
    growth - they are also hesitant to take on new debt.

    Mobile devices give underbanked financial foothold.
    They use it more than fully banked households. Nearly two out of
    three households primarily used bank tellers or online banking when
    accessing their accounts. These banking methods, along with ATMs, were
    also the primary methods underbanked households used to access their
    accounts, according to the 2013 FDIC National Survey of Unbanked and
    Underbanked Households.

    Is Alternative Finance Now Britain's Fastest Growing Industry?
    The growth posted by Britain's alternative finance sector is, by any
    standards, remarkable. A report published today by innovation group Nesta
    and the University of Cambridge says the sector will be worth £1.74 billion
    by the end of the year - representing 161% growth on 2013. And by the end
    of 2015, the report reckons, the figure will have reached £4.4 billion.

    TransUnion Survey: Credit Unions Focus on Auto Loans for Growth
    Opportunities in 2015.
    Continued low auto loan delinquency rates and high demand for both new
    and used autos are likely reasons why credit union executives surveyed by
    TransUnion believe auto loans will afford them with the most loan growth
    opportunities in 2015.

    Banks Missing a Bet: 88 Million Relying on Cash, Prepard Cards.
    The actual number of Americans who are "unbanked" (meaning they have
    no relationship with a financial institution) or who are "underbanked" (who
    have a limited relationship with a financial institution) is hard to pin down.

    Pawn stores thriving even as economy improves. You can learn a lot about
    the state of the economy looking at the iPads, trendy high-end purses and
    even fur being held in a storage room at Dynasty Jewelry
    and Loan, a pawn shop in suburban Atlanta. While the recession may have
    officially ended five years ago and Wall Street is rocking and rolling, the pawn
    business is as robust as ever in metro Atlanta as many residents have yet to
    feel the effect of a rebound, pawn operators say.

    Would you pay an interest rate of 17,000% to borrow $24? That might seem
    absurd, but you probably already have - and maybe more than
    once. The average debit transaction that incurs an overdraft fee is $24,
    according to a recent study by the Consumer Financial Protection
    Bureau (CFPB). The majority of these overdrafts are repaid in three days; in
    lending terms, the interest rate charged would be in the tens of
    thousands, according to the report. To dig deeper into the phenomenon
    of overdrafting, GOBankingRates asked 1,000 people why they overdraw their
    bank accounts.
    The results were as follows:
    * I never overdraft (70.45%)
    * I don't know my account balance (14.85%)
    * I absolutely need to make a purchase (6.84%)
    * My bank's overdraft policy confuses me (4.67%)
    * The fee is less than my purchase (3.19%)
AFSPA
AFSPA
AFSPA
AFSPA Association
AFSPA

News, Data, Research, Ideas, Suppliers, Support
Examination of
Small-Dollar Credit
Consumers
Payday Lending
Statutes by State
Association Endorsed
SUPPLIERS
LINKS
LINKS
Endorsed SUPPLIERS
Association Endorsed
SUPPLIERS
Weekly NEWSLETTER
factor trust
AFSPA
Sherman and Associates
the acknowledged leader
in loan quotation
software, including all
credit insurance and debt
protection methods
.
Debt Buying by Payday Professionals
Call Center Services for
the Financial Services Industry
RISK MANAGEMENT
DEBT BUYER
PAYMENT & CHECK PROCESSING
BUSINESS OPPORTUNITY
LOAN QUOTATION SOFTWARE
CHECK RECOGNITION
CALL CENTER
DATA / ANALYTICS
The Association of
ALTERNATIVE FINANCIAL SERVICE BUSINESS OWNERS
"We help you grow your business by providing you with
the best information, research, data, support, relationships
and by vetting and presenting the best available product and
service providers for the alternative financial services industry
."
RISK MANAGEMENT
INSURANCE SOLUTIONS



PAYDAY LOAN - CHECK CASHING - TITLE LOAN - PAWN - RENT TO OWN - BUY HERE/PAY HERE - PREPAID CARDS - INSTALLMENT LOAN
BILL PAY - MONEY ORDERS - FACTORING - SUBPRIME AUTO - REMITTANCE - PAYROLL CARDS and
ALL ALTERNATIVE FINANCIAL SERVICES
AFSPA
AFSPA
SOFTWARE SOLUTIONS
SOFTWARE SOLUTIONS
AFSPA
Prepaid Mobile Airtime
AFSPA
banking and financial
services law
LEGAL
PAYMENT PROCESSING
Copyright 2014 @ All rights reserved.
AFSPA
BUSINESS OPPORTUNITY
ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
The Nation's Largest Underbanked Industry Association