Banks Seen Turning To The Poor

Published on:
12 September 2006 at 10:18 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00003002-banks-seen-turning-to-the-poor/

The next Big Trend – profiting from the poor. As much as $168 billion passes through the fringe financial sector annually in 280 million transactions, providing $5.4 billion in fees, according to the Fannie Mae Foundation.

Having tapped out the creditworthy, cell phone companies, banks, credit-card networks and other financial firms will look for business from the 10 million to 25 million folks who fly under the credit radar.

Fees and rates charged for subprime loans, payday advances, check cashing and money transfers are multiples of those charged by mainstream lenders. Immigrants—legal or otherwise—minimum-wage workers, young people lacking established credit, the unbanked and anyone who lives from paycheck to paycheck are now courted as eagerly as the more creditworthy.

For this complete story, please visit Banks Seen Turning To The Poor.

Banks Seen Turning To The Poor

Unknown Author

Featured Resources

Webinars

RA Compliance Corner: Managing Your Service Providers- Do you really have it all in order?

About