HOMESTATS | PUBLICATIONS | REGISTER | ADVERTISE | ARCHIVE | ABOUT US | CONTACT US



 Search the Archives of Target Market News

Click here for recent news stories and our news archive
____________________________________

THE LATEST NEWS JUST A CLICK AWAY!

 
Want more news on African-American media, marketing and research as it happens? Follow us on Facebook and Twitter and get ahead by staying ahead of the other industry sources.
____________________________________

STAY IN-THE-KNOW!
Are you getting the latest industry news when it happens via e-mail
?

 

Click here for free daily delivery of the Target Market News Bulletin
You"ll receive news of breaking stories, exclusives, updates and headlines on the latest developments in African American marketing and media

 

Report: Reaching unbanked Black, Hispanic  Millennials possible with mobile services

(January 19, 2016) Consumer banking relationships are being reshaped by mobile financial services, according to market research publisher Packaged Facts in the report, Unbanked and Underbanked Consumers in the U.S. For the unbanked, these mobile services offer a realistic way to expand economic inclusion.

"Mobile financial services can provide account information from virtually any location, at any time. Along with this information, they can provide tools consumers can use to manage their finances, conduct transactions, and avoid potential problems such as overdrafts, late fees, and fraud.  As a result, this technology has the potential to make banking relationships more convenient and sustainable for households that otherwise may experience such concerns," says David Sprinkle, research director, Packaged Facts. "The Bluebird card account by American Express is an excellent example of what we view as an ideal candidate for smartphone-enabled unbanked and underbanked."

Mobile phones have fast become something nearly every consumer -- including the unbanked -- has: data published in the report show that, as of 2015, some 93% of unbanked adults have a mobile phone. With mobile phones reaching saturation among the unbanked, text-based alerts can be a reality for all. More importantly for the financial services industry, almost two-thirds have a smartphone, giving these consumers access to 24/7 mobile banking convenience and the potential to use banking services at lower costs.

Black or Hispanic Millennials (those age 18-34) are more than twice as likely to be unbanked than banked. These younger minority groups are also major smartphone users, which provides the potential to connect them with mobile banking and payment options.

Yet while smartphone usage penetration among unbanked 18-24s, Hispanic and black consumers is relatively strong, household income remains a stumbling block: only 44% of adults living in homes with an income under $25K have smartphones. Older unbanked consumers are also far less likely to have a smartphone. Just a quarter of adults age 65 and up have a smartphone, which suggests smartphones are simply not the answer for reaching this group.

The good news is that mobile banking usage rates suggest real success in engaging underbanked consumers, who may be more likely to rely on it as their primary banking method than fully-banked households. Thus for younger and middle-aged unbanked, a brighter, more connected financial services world lies ahead.

But fully realizing the potential of mobile financial services for the unbanked will also mean engaging the unbanked more directly and more personally, advises Packaged Facts. Mobile phones can provide the tools, but people and institutions must ideally provide the guidance, education and one-to-one interaction necessary to create longer-term financial relationships and proper, proactive use of mobile tools and technology.


RECENT NEWS STORIES

Fifth Third Bank to pay $21.5 mil in Federal auto lending and credit card discrimination case

True Star Foundation founders launch True Access, a youth-oriented marketing firm

UniWorld Group releases new insights on the mindsets on multicultural consumers

Black Cable TV Ratings for Week of September 21 - 27 OWN has record-breaking week to cap off the best quarter in the network's history

Chevrolet, Rainbow PUSH team up on national campaign providing financial literacy

Black TV Ratings for Week of September 21 - 27 'Empire,' 'Rosewood,' 'Scandal, and 'Murder' push Sunday Night Football to No.4

Hyundai, radio's Cafe Mocha partner on 'Salute Her' campaign saluting women of color

BMW to pay $1.6 Mil and offer jobs to settle Federal race discrimination lawsuit

Report from Nielsen highlights growth and affluence of African-American households

Kizart Media Partners wins bid for 50,000 Watt FM station license in Cleveland, Miss.

RLJ Entertainment acquires rights to Nina Simone film set for December release

Black Cable TV Ratings for Week of Aug. 31 - Sept. 6 OWN's 'Haves & Have Nots' beats VH1's 'Love & Hip Hop' to regain week's No.1

Black TV Ratings for Week of Aug. 31 - Sept. 6 'The Carmichael Show,' NBC's summer winner, reaches No.1 with black viewers in second week

The Power of Urban Radio Forum and NABOB again partner for annual conference

Production begins on BET scripted series, 'Zo Ever After' for premiere January 2016

Study: CEOs and CMOs differ on need to focus on multicultural marketing strategies

Toyota partners with Rainbow PUSH Excel to invest in Jesse Jackson Fellow Scholars

Click here for more recent news stories and our news archive














































































































 

ON SALE NOW!



The 18th Annual
Buying Power of
Black America

A dollar-by-dollar breakdown
of the Trillion-Dollar Black Economy

Published by
Target Market News

Click here to learn more and order a print or digital copy today!

________________________________




_________________________________





 

TARGET MARKET NEWS
228 S. Wabash Ave.
Chicago, Il 60604
312-408-1881
Copyright (c) 2015 All rights reserved

info@targetmarketnews.com                     Supplier Services