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The Unbanked Spend

Adam Rust's picture

Posted July 2, 2012

According to Core Innovation Capital, the under-banked spend $45 billion every year on financial services. Those "spends" include:


  • Mortgage loans: $9 billion
  • Retail payday lending: $4.5 billion
  • Internet payday lending: $3 billion
  • Pawn Shop: $3 billion
  • Auto title loans: $1.25 billion
  • Refund anticipation loans: $500K
  • Rent-to-own: $5 billion
  • Overdrafts: $7 billion
  • Credit cards: $2 billion


  • Check cashing: $2 billion
  • Credit score services: $1 billion
  • Remittances: $2.5 billion
  • In-store bill pay: $1.9 billion
  • GPR prepaid: $1 billion
  • Payroll prepaid: $1 billion
  • Checking accounts (not overdrafts): $1 billion

One insight that should be readily gleaned from these sales figures is that there is a substantial opportunity to offer services to this sector. These consumers are buying financial products. Moreover, new entrants should be able to get a cut at a lot of producer surplus. Of course, it is only a win-win if new entrants find a way to create something with pricing that gives consumers better value. We don't want to see more internet payday lending.