According to a new survey by KPMG LLP, nearly a quarter of bankers believe that “underbanked” customers—those who use only basic checking services—represent the biggest growth opportunity for their firms. This result nearly doubles results from one year ago, when only 12 percent of bankers polled reported such enthusiasm for underbanked customers, reports The Wall Street Journal.
Underbanked consumers consist of young banking service users, such as high school and college students or recent grads, and low-income customers with limited access to credit. Around 10 million U.S. households are entirely unbanked, while around 24 million (20.1 percent) are underbanked, according to data from the FDIC.
Underbanked customers spend more money on fees than average doing standard features such as cashing checks or using ATMs.
“Banks are getting more creative and thoughtful about how they target unbanked and underbanked customers,” said Judd Caplain, KPMG’s Advisory Industry Leader for Banking and Diversified Financials, reports The Journal.
Caplian also noted that banks hope to bridge the gap between themselves and this consumer segment by attempting to customize and make more widely accessible product offerings.
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