Millions of underbanked Americans have found prepaid cards an effective way to meet their basic financial services needs.

In 2010, the Financial Health Network launched its largest effort yet to catalog all existing financial products and services aimed at the underbanked population: the Underbanked Industry Scan.

The Financial Health Network led a consumer research study on secured card products, conducted with MasterCard and Blue Flame Consulting.

Mainstream financial institutions have struggled to meet the needs of low-income families living paycheck to paycheck.

An estimated 30 to 40 million American households are financially underserved. They lack access to the financial products and services that enable them to save, build assets, and achieve financial prosperity.

This paper outlines some of the major themes which emerged during Fourth Annual Underbanked Financial Services Forum, in 2009, inlcuding an exploration of the heterogeneity of underbanked market segments

The Financial Health Network has conducted an investigation into the amounts that prepaid cardholders spend each month to conduct essential financial transactions, and compared that to the amounts that they would spend if they remained underbanked or used checking accounts for the majority of their transactions instead.

Millions of lower-income consumers lack access to high-quality financial products and services that simultaneously meet their short-term needs and prepare them for long-term financial success.

This the Financial Health Network inBrief provides some insights on underbanked consumers’ preferences and usage regarding financial service providers. The information is drawn from the 2008 the Financial Health Network Underbanked Consumer Stud.

Learn how the increased scrutiny recently placed on the payday loan industry has underscored the need for innovation and motivated financial services providers to develop solutions.