2012 Financially Underserved Market Size Study

This paper presents the trends and range of revenue opportunities in the financially underserved market of the United States. It assesses factors like industry revenue and revenue growth rate for the year 2012 against future projections for a comparative understanding. The study examined 23 financial products used by over 68 million financially underserved consumers in the country and presents an analysis of a product-based-revenue over a period of four years followed by a discussion on segments to watch out for in the future. Key findings include:

• United States' financially underserved market generated approximately USD 89 billion in fee and interest revenue in 2012;
• Market saw an annual growth in revenue of 8%, from a previous total of USD 82 billion. Volume of business grew 7%, from USD 740 billion in 2011 to USD 792 billion in 2012;
• Moderate revenue growth occurred across all categories, short term credit grew by 10% from 2011 to 2012, very short term credit and payments each grew by 7%, deposits grew by 4%, and other services by 6%;
• Indicators project that the underserved market will maintain a steady growth rate of 8% in 2013, reaching a total of USD 95 billion in revenue;
• Subprime auto loans are likely to be the highest growth product segment in 2013 with a projected growth rate of 23.1%.