As the industry gathers more data about how different consumer groups are using alternative financial products, like prepaid cards, the assumptions made about who uses these products and how they use them are being broken up. For example, the study cited in this article speaks to the irrlevance of income when it comes to how younger consumers use these products.
“Millennials are under a lot more financial pressure” than their age group in past decades, says Ken Rees, CEO of Think Finance. “Even at higher levels of income, they may not have full access to traditional bank products.”
For traditional financial institutions, the lesson here is to make financial services convenient and accessible to as many consumers as possible, not necessarily match product for product.
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