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Boston, MA, May 26, 2009 – A new report from Aite Group, LLC explores banks' opportunities to increase their market share in check cashing. The report, based on in-person interviews with 400 check cashing store users, examines characteristics of unbanked and underbanked consumers who cash checks through various channels, including check cashing stores, banks and retail locations.
Aite Group estimates that banks have a 28% market share among check cashing store users, and that ample room exists for banks to continue to grow their market share in check cashing. By segmenting check cashing store customers into four groups based on their primary check cashing channel, Aite Group identifies key differentiators between the segments that banks can use to their advantage, estimating that banks could increase their market share to 47% among check cashing store users.
"Banks should focus their efforts on the segments that are already most highly engaged with banks," says Judy Fishman, analyst with Aite Group and co-author of this report. "These groups are prone to conduct business at banks on a regular basis, and can be easily persuaded to channel a greater portion of their check cashing to bank branches."
"To grow market share among the engaged segments, one of the steps banks could take is to offer walk-in bill payment," adds Gwenn Bézard, research director with Aite Group and co-author of this report. "As such, providers of walk-in and online bill payment services should have an opportunity to partner with banks committed to targeting unbanked and underbanked consumers."
This 25-page Impact Note contains 18 figures. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right. 
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