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How many of your potential customers have no savings account (underbanked) or no bank accounts at all (unbanked)? Chances are, more than you might think. According to a 2011 survey conducted by the FDIC, the number of unbanked and underbanked households are on the rise.
In fact, the FDIC survey reveals that one of four U.S. households (28.3 percent) are either unbanked or underbanked. One in 12 households have no bank accounts whatsoever. That’s 821,000 more unbanked household than in 2009. Other notable survey findings tell us that:
So what do these numbers mean for the automotive finance industry? Dealers and lenders absolutely should have strategies in place for servicing these unbanked and underbanked customers and capturing this growing market opportunity.
That includes making sure these customers know you have a way of meeting their needs and getting them into vehicles — even when they don’t have savings and/or checking accounts. It also means having a reliable, proven system in place that keeps unbanked and underbanked customers on track with their payments to lessen the burden on their collections. Because while you want to reach unbanked and underbanked customers, you also want to protect yourself from risk.
Spireon’s two leading brands GoldStar GPS and LoanPlus CMS, support your strategy for capturing the unbanked and underbanked market. With GoldStar GPS and LoanPlus CMS in place, you’ll be able to confidently offer subprime automotive loans to these under-served customers, knowing that your vehicle assets and your bottom line are protected. With on-demand vehicle tracking, automated payment reminders, the remote starter enable/disable, GeoFencing that alerts you when a vehicle enters or leaves specific geographic boundaries, stop history reports for STIPs verification, and an array of other powerful features and real-time information, you’ll be able to reduce delinquencies and defaults, recover and repossess vehicles more quickly and cost-effectively, streamline your collections operations, and grow your unbanked/underbanked business. And that’s good news for everyone.