Capturing the Underbanked’s Bill Pay Attention Leads to ROI

Javelin Strategy & Research Uncovers How the Underbanked “Bank” Outside of the Bank -- Bill Pay

SAN FRANCISCO--(BUSINESS WIRE)--When it comes to paying bills, too often the nation’s 37 million underbanked American’s do it using hard and costly ways: in cash, and in person, bill pay by mail, or by phoning call centers. Javelin Strategy & Research’s latest report outlines opportunities for financial institutions, billers, mobile carriers, and bill-pay innovators to enhance the online and mobile options with electronic payments for this underserved population. This report provides a four-part profile of underbanked Americans—those without a checking account. The report also includes an analysis of how underbanked typically pay seven of the most common bills and recommendations for motivating them to increase the use of online and mobile bill pay.

“The underbanked are not a homogenous group that can be easily targeted with a one-size fits all approach”

“The underbanked are not a homogenous group that can be easily targeted with a one-size fits all approach,” said Mark Schwanhausser, Director – Multichannel Financial Services at Javelin Strategy & Research. “FIs and bill pay innovators need to realize that there is a win-win ROI opportunity to improve bill pay services and cut processing costs by better understanding and targeting the 15% of Americans who are underbanked.”

When it comes to bill pay, the underbanked are just like Americans at large. They want safe and convenient ways to control the flow of payments. As a result, persuading the underbanked to try bill pay online or on their smartphones is likely to be similar marketing and educational themes that motivates consumers at large.

Javelin Strategy & Research’s How to Build Better Online and Mobile Bill-Pay for the Underbanked evaluates the profile of the underbanked community, what payment methods and channels the group prefers when paying bills, and provides FIs and bill-pay organizations with insight into how to effectively enhance and market online and mobile bill-pay services to this underserved population. It is based on the analysis of four online surveys of more than 17,000 consumers. The report contains 35 pages and 13 graphs.

Learn More: How to Build Better Online and Mobile Bill-Pay for the Underbanked

Related Javelin Research

• A Tale of Two Gen Ys: On the Road to Long‐Term Banking Profitability

• How to Convert 22 Million Americans to FI Bill Pay

• 2012 Mobile Banking Financial Institution Scorecard: Three Keys to Mobile Money Movement Success

• 2012 Online Banking and Bill‐Payment Forecast: How to Boost Profitability When Facing Flat‐Lining Adoption

About Javelin Strategy & Research: Javelin Strategy & Research, a division of Greenwich Associates, provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.