Prepaid-Cards-Lure-Underbanked

DPA Insights
As a company that supports banks in the development of strategies to reach out to the growing Hispanic/Latino market, we are not at all surprised at these findings. Our research has shown that a very high percentage of the “unbanked” are Hispanic and that pre-paid cards are a practical option for many. Yet many banks don’t consider strategies focused on this growing market. Prepaid cards offer banks an opportunity to gain loyal Hispanic/Latino customers, especially new immigrants who save heavily.

According to a 2011 study done by the Darden School of Business, of the $169 billion floating outside the banking system, $3 billion is from Hispanic households who engage in cash transactions. This article notes that usage of mobile devices has added to the value of prepaid cards market. Here as well, Hispanics are way ahead of the curve in the use of mobile devices and social media. The valuable insights shared by Javelin Strategy & Research can help banks overcome preconceived notions about the Hispanic market, offer services that truly synch with their needs and gain lifetime customers in the process.

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