The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
There were more financially underserved consumers as a share of total banked consumers in 2015 in the US in over a decade. This presents a significant opportunity for financial institutions looking to increase share of consumer lending and total consumer credit. The share of the banked population considered financially underserved reached 17.8% in 2015 compared to 14.6% in 2005. Recently banked consumers that often compose a large portion of financially underserved consumers can easily become fully banked under the right circumstances and if appropriate financial products and services are offered to them. The banks that are able to identify these needs and effectively communicate their availability to these consumers will most likely gain share over the forecast period.
Consumer card payments reached nearly 50% in 2015 in the US. The continued transition toward a cashless society allows for more engagement with consumers from financial institutions. Millennials see card and electronic payments as the standard as opposed to paper alternatives. Among the transition away from cash, the migration toward digital financial service management and online payment platforms is no longer a distinguishing factor for financial institutions but a requirement. The challenge over the forecast period will be the transition of the remaining 37% of consumer payments still made with paper to electronic and card channels. Broader merchant acceptance has facilitated the transition, but there still remain channels unconverted to accept cash alternatives. The number of POS terminals in the US increased by 300,000 from 2014 to 2015.
Despite the transition to EMV in the US, card fraud and the importance of the security of payment data among consumers has greatly increased. The US remained the leading market globally by total value lost to fraud for card payments in 2015. All types of fraud researched by Euromonitor International increased. The highest growth category from 2014 to 2015 and overall in terms of absolute value was counterfeit cards. The absolute value lost to fraud on counterfeit cards was US$2 billion while card not present fraud reached US$1.9 billion. The EMV transition will likely bring down the counterfeit fraud going forward, but there has been a corresponding increase in card not present fraud in other markets that have made the transition to EMV and are moving toward a greater share of retailing taking place online.