Observation: A
recent story from the New York Times explains how some major banks are
offering check cashing services, short-term loans and other services. In addition to steep fees that allow the
banks recapture revenue that was lost during post-recession banking reform, the
services are often designed to help banks re-capture low-income consumers they
had previously overlooked.
Click
here to see the story.
Implications: This blog has often referred to a cohort of
consumers called, “the un-banked.”
Often, the people who fit into this group are simply younger consumers;
those who might have an account or two with a bank, but who do not have a
substantial relationship with their bank due to automatic deposit, automated or
online bill paying services, etc.
(Perhaps it would be more accurate to say they have a bank, but not a
bankER.)
Another segment of the
un-banked cohort was simply composed of lower-income consumers; those people
who might not have the funds to invest in an IRA, money market or other
investment account, those without the dollars to deposit in a significant
savings instrument, and without the impressive credit history that stringent
lending rules might require. For years,
banks were courting more affluent customers, and the un-banked were left to
fend for their financial needs with check-cashing services and payday lenders.
It is worthwhile to
note how times change.
Are there prospects
and customers in your business that are being taken for granted as
“secondary?” Don’t get me wrong: There is no rule against that, and I can make
several arguments in favor of that. But
one might ask whether there is any scenario or shift that might alter the
profile of your ideal target customer.
Are you continually talking with customers and monitoring industry
trends so you can better anticipate such shifts?
