Executive Overview The $100 billion size for the high-cost non-bank fundamental economic solutions industry, including check cashers, payday loan providers, and pawnshops, points towards the popular for fundamental monetary solutions among low- and moderate-income clients. Alternate items offered by banking institutions could satisfy those customer requirements, while also creating the opportunity for households to transform their spending that is current on solutions into cost savings as well as wide range. To explore that potential, this study conducts a comprehensive report on the place of most fundamental retail economic solutions organizations to ascertain their accessibility to lower- and moderate-income customers. The research additionally yields projections that are new the possible cost cost cost cost savings incurred by several situations of hypothetical unbanked employees if efforts had been built to move their high-cost costs into cost cost cost savings or investment automobiles.

• Moderate- and lower-income households spend over $8 billion in costs to checkcashing that is non-bank short-term creditors to satisfy their fundamental economic solutions requires. Those costs are gathered from 48,082 non-bank establishments, such as about 26,000 companies that fee an average that is estimated of40 per payroll check to cash a check from typical unbanked households with full-time workers.
• Over 90 % of those non-bank fundamental economic providers can be found within one mile of a bank or credit union branch. For example, 93 per cent of non-bank companies that money checks are situated within one mile of the bank or credit union branch.
• Despite popular perception, bank and credit union branches are more inclined to be based in low-income and reduced middle-income neighborhoods than non-bank economic solutions providers. For example, credit and bank union branches can be found in 56 per cent of lowerincome areas; non-banks have been in 31 per cent of lower-income neighborhoods. Continue reading →