US Alternative Financial Service Industry Statistics [INFOGRAPHIC]
With over 10 million people in the US having no bank accounts, it is no surprise that the payday loan, check cashing and remittance industries make up a large chunk of the financial services industry. Discover common products, and major reasons why households participate in the AFS industry through the infographic below.
Infographic by- The Credit Examiner
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Nearly 10 Million (8.2%) US Households don’t have bank accounts
28.3% of U.S. households are either unbanked or under banked
Major reasons for not having Bank account
| Reasons | %age |
| Not Enough Funds | 33% |
| Don’t need Bank Accounts | 21% |
| Don’t Trust Banks | 7.5% |
| Lack Identification Documents | 6.6% |
| Bank closed their Accounts | 6.4% |
| Bank Account Fees / Min Balance Requirements | 5.4% |
25% of US households have used at least one form of alternative financial service -
- Money order
- Check cashing service
- Tax refund anticipation loan
- Pawn shop
- Rent-to-own service
- Payday loan
And about 12% of households have used one of these products in the past 30 days
More than 13,000 nonbank financial services companies operate nationwide i.e. almost double as compared to commercial banks in USA
Annual Transaction Volume of US AFS Industry
| Alternative Financial Service | Transaction Volume ( In Billions) |
| Buy-Here-Pay-Here (BHPH) Loans | $90 |
| Check Cashing | $50 |
| Payday Loans | $48 |
| Remittances | $46 |
| Prepaid Cards | $39 |
| Refund Anticipation Loans | $26 |
| Money Orders | $17 |
| Rent-to-own Transaction | $7 |
Popular AFS Products used by Under Banked Households in last 12 Months
| AFS Products | %age |
| Non-Bank Money Order | 71.2% |
| Check Cashing | 22.8% |
| Remittance | 14.4% |
| Pawn Shop | 10.2% |
| Payday Loan | 7.9% |
| Rent-to-Own | 5.4% |
| Refund Anticipation Loan | 4.6% |
Why Households Prefer AFS Products
| Reason | %age |
| More Convenient | 51.8% |
| To Get Money Fast | 18.4% |
| Don’t qualify for Bank loan | 13.6% |
| Don’t have Bank account | 10.1% |
| High Bank Fees | 3.4% |
| Do not Trust Banks | 1% |
| Lack of Identification Documents | 0.9% |
| Other | 9.6% |
Major Reasons Why Households need Credit from AFS Products
| Major Reasons | %age |
| For Basic Living Expenses | 43% |
| Decrease in Income | 17% |
| For House or Car Repairs | 11.8% |
| Special Gifts / Luxuries | 4.7% |
| Family Expenses | 2.2% |
| Health Expenses | 2.5% |
| Legal Expenses | 0.6% |
| Other | 13.8% |
[...] products in the past 30 daysAlternative Financial Service Industry StatisticsInfographic Source: Credit ExaminerEmbed This Infographic On Your Site (copy code below):Courtesy of: Infographix DirectoryRelated [...]
When you say that people prefer AFS products for “convenience”, what do you mean with that?
Great infographic, thanks!
Apo