Unbanked and more - Brookings - Cherry Creek News- Topic: Looking For Money To Payday Loans With Savings Account
The $100 billion size of the high-cost non-bank basic financial services industry, including check cashers, payday lenders, and pawnshops, points to the high demand for basic financial services among low- and moderate-income customers. To explore that potential, this study conducts a comprehensive review of the location of all basic retail financial services firms to determine their accessibility to low- and moderate-income consumers. In sum, there is a substantial opportunity to leverage this wide distribution of banks and credit unions to connect moderate- and lower-income households to potentially lower-cost basic financial services. Public and private leaders can help moderate- and low-income households realize their full wealth-building potential by working with the vast retail infrastructure of banks and credit unions that are already well-positioned geographically to provide affordable financial services to these consumers. Further, by working together, the public and private sectors can address the numerous business and consumer dynamics that drive the supply of and demand for high-cost financial services, and perhaps most importantly, confront what has proved to be the very difficult task of promoting household savings and investment. Learn more
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