Report Finds Financial Services Industry Not Tapping Into African American Market

Black consumers hold fewer credit cards and use them less often than any other group. Yet with an estimated purchasing power of $981B by 2010, it’s a demographic that the financial services industry tends not to cultivate relationships with long-term, according to a new report: African American Credit, Debit and Prepaid Card Users: Undervalued and Overlooked.

The study, from Packaged Facts, states that over 2M Black households have incomes of $75K…and estimates that those bringing in $100K annually has already reached $116B. Yet only 45% of adult Blacks had a credit card or used one in the Fall of 2006.

"Credit, debit and prepaid card companies have not used their creativity in approaching African American customers as a worthwhile focus of marketing resources and product development…(through research) we have learned that African Americans typically value good financial advice more than other groups, are more likely to read the business section of the newspaper, and are more receptive to financial services advertising. It's clear that they are key targets for acquiring new customers." Read On…