...Growing Presence in the Underbanked Space: The alternative financial services (AFS) industry is a longstanding but growing market capitalizing on evolving regulatory dynamics, increased private equity sponsorship and favorable demographic and socioeconomic trends to offer a broad suite of products and services to underbanked and unbanked customers. Offered products can be broadly categorized into transaction products (e.g. money orders, bill payment, check cashing) and credit products (e.g. payday loans, pawn loans, installment loans). Primarily Catering to Higher-Risk Consumers: AFS providers operate outside the traditional banking system in markets that are highly competitive and fragmented. The industry targets consumers that are often underserved by banks and other financial institutions, which account for an estimated 34 million households or approximately 68 million consumers in the U.S. Evolving Landscape Provides Opportunity: Increased political pressure and regulatory oversight...
