Revenues of Alternative Financial Products Grows 7.1 Percent
A new study finds strong revenue growth among payday lenders, auto lenders and other providers of alternative financial services to underserved customers. The financially underserved market revenues increased from $96 billion in 2012 to $103 billion in 2013, based on consumer usage volume of $1.3 trillion in financial products and services. Among the products examined, revenue growth was highest among subprime auto leases, prepaid cards and title loans. The results are a continuation of revenue growth trends in the industry, which has seen an average annual growth rate of 6% since 2009. The market is projected to have grown by 4.6% in 2014 to reach a total revenue of $107 billion.