Buying, Spending Habits of Underbanked Reveals Opportunities for
ATLANTA–(BUSINESS WIRE)–FactorTrust, The Alternative Credit Bureau, today released its
Underbanked Index, highlighting quarterly insights of the earning,
spending and living habits of underbanked consumers—a $105B untapped
market. The analysis is derived from FactorTrust’s proprietary
alternative credit data used in analytics and risk scoring solutions by
lenders to make informed decisions about consumers they want. This Index
highlights the demographic characteristics, credentials and capacities
of the underbanked, like the trend of median loan values among this
segment increasing as incomes increase.
“As the leading alternative credit bureau, our updated Index on
underbanked consumers is another educational resource we provide the
industry that sets us apart,” said FactorTrust CEO Greg Rable. “We
continuously update our findings to help lenders, as well as interested
associations, analysts and media, to better understand the demographics
of this growing segment of the consumer population.”
Determining which consumers are borrowing, how much they borrow, and
their income assists lenders with determining right-pricing
opportunities and term setting appropriate for the underbanked market.
Additional findings in the Underbanked Index include:
The average age of underbanked consumers at
the time of the loan application is 39, and the average age of the
borrower in 41. The average loan amount borrowed trends upwards with
age, peaking at 45. This trend has shifted to a slightly older
demographic over the course of the last several years, due in part to
growth in the diversity of products, channels of delivery and average
size of loans.
Income & Loan Amounts:
While the average income for
applicants is $2,712 ($32,544 annually), for borrowers, the average is
slightly higher at $2,936 ($35,232 annually).
More than 50 percent of underbanked consumers
are employed in two primary areas: retail (32 percent) and quick serve
restaurants (20 percent). The average length of employment with one
employer is 34 months.
Approximately 45 percent of underbanked
consumers hold a bachelor’s degree or higher. Another 54 percent hold
only a high school diploma, while another one percent has attended a
vocational or technical school or program.
summarizing these and other findings is available at www.FactorTrust.com.
To receive the Underbanked Index via email, sign up at ws.FactorTrust.com/UnderbankedIndex,
or email marketing@FactorTrust.com.
Data is based on expert analysis from FactorTrust’s database of 250M
records related to underbanked consumers collected by the company each
quarter. The findings of the Index assist financial institutions,
associations, analysts and media interested in tracking, benchmarking or
understanding the needs of underbanked consumers. For more information,
please visit ws.FactorTrust.com/UnderbankedIndex.
FactorTrust, The Alternative Credit Bureau, is relentlessly dedicated to
proven analytics and clean credit information that provide lenders and
financial service providers opportunities to grow more revenue, meet
compliance regulations and serve more consumers with more credit
options. At the core of FactorTrust is alternative credit data analytics
and risk scoring solutions not available from the Big 3 bureaus.
FactorTrust alternative credit data and analytics accurately predicts
risk and the ability to repay near and non-prime consumer loans in
real-time. The company’s solutions enable financial service companies an
opportunity to uncover creditworthy prospects that are not surfacing via
traditional credit sources. Headquartered in Atlanta, the experienced
FactorTrust team has delivered unique data and valuable insight to U.S.
lenders for more than 10 years. For more information on the quarterly
FactorTrust Underbanked Index or the company itself, visit www.factortrust.com.
Laurie Anderson, 678-488-9740