Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report which provides a comprehensive overview of the financial services market for the African-American population. It says there is tremendous opportunity for organisations to attract more cardholders in this community and persuade them to increase them to increase frequency of card use.
“African Americans and Credit, Debit and Prepaid Cards: Valuable but Overlooked” finds that African-Americans hold fewer credit cards than any other racial or ethnic group. They also use them far less often. These factors contribute to there being enormous opportunities for growth in the African-American market, whose buying power is predicted to reach $981 billion by 2010.
The report finds that the financial service industry has not made concerted efforts to develop the African-American market with a view to building long-term relationships. It says the market which has made efforts to cultivate the growing Hispanic population, even though on average, they have a lower income than the African-American community.
At present, there are over two million African-American households with annual incomes of $75,000. Analysts have estimated that the aggregate income of affluent black households (defined as those earning $100,000 or more per year) is already $116 billion. Still, the study found that only 45% of adult blacks in the U.S had used credit cards in Autumn 2006,and that figure corresponds to just 7% of the total adult credit card user population. It also found that the African-American card use rate was below the general population’s rate.
Analysts reveal that credit, debit and prepaid card companies have not been creative in providing the African-American customer with a focused market strategy. They also found that this segment typically values sound financial advice and is highly likely to read business sections of newspapers. They are also more receptive to financial services advertising than other groups.
This report offers an in-depth look at African-American card usage patterns and identifies the financial trends affecting the community. It identifies credit and debit card brands and schemes preferred, and highlights growth factors and risks associated with intensive targeting of the African-American population.
“African Americans and Credit, Debit and Prepaid Cards: Valuable but Overlooked” is available from Report Buyer. For more information, go to:
http://www.reportbuyer.com/
Report Buyer Product ID: PKF00090
