Nonbank players threatening to steal the market in prepaid cards.
Position | MARKETING NEWS - Brief article |
DEPENDING ON THE EXTENT OF UNDERBANKED AND UNBANKED HOUSEHOLDS in their markets, banks should give serious consideration to adding general-purpose prepaid cards to their checking product line, says Genie M. Driskill, chief operating officer of Synergistics Research, Atlanta.
A recent survey by the company entitled, "Relationship Strategies for Checking Accounts," showed that while only 2 percent of customers are currently using prepaid cards in lieu of checking, an additional one-fourth express the likelihood of doing so in the future. Both current usage and intent is stronger among 18-to 34-year-olds.
Driskill notes that a number of players--particularly non-bank organizations--are actively marketing general-purpose prepaid cards to the unbanked and underbanked as a viable alternative to a checking account. Recent activity in this area includes a joint venture involving...
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