Afs Reseach Brief

AFS Research Paper

Alternative financial services (AFS) are any providers of a financial service that operate outside of federally insured financial services providers, such as banks. AFS offer financing to individuals who cannot or will not seek funds from financial institutions such as banks or credit unions. Examples of AFS are:

* check-cashing outlets

* money transmitters

* car title lenders

* payday loan stores

* pawnshops

* quick loan companies

* rent-to-own stores

Alternative financial services can also be referred as financial products delivered through the internet, financial services kiosks, and mobile phones.

There are many segments of the population who are likely to not use banks. These include those with low and moderate incomes, minorities, those without any savings, and bad credit. Other reasons and percentages are:

* households with low and moderate incomes

* households without deposit accounts

* minority households

* households with little or no savings

* households with less favorable credit risk profiles

* people who don’t need banks

* people who do not trust banks

Reasons | % |

  |   |

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 Requirement | 5.4% |

(thecreditexaminer by Admin)

According to Scarborough Research, Chattanooga, Tennessee as a top 10 market for Unbanked Consumers. Unbanked Consumers represent eight percent of total adults in the Chattanooga market, a market that is 62 percent more likely to have Unbanked Consumers compared to the U.S. The Unbanked tend to be younger than the average consumer, more likely to be single, and are just starting out their lives and establishing their finances. Below is a look at the demographics of the Unbanked Consumer in the Chattanooga Market.

Financial literacy plays a...