Abstract
Despite a constant search for new revenue and clients, the credit, debit and
prepaid card industries have largely overlooked the African American market as
an attractive segment. The recent and understandable enthusiasm for the
opportunities afforded by the Hispanic market has eclipsed the strong growth
potential of the 37.5 million strong African American market, which enjoys
higher household income levels than Latinos. In addition, African Americans
claim great receptivity to market communications from financial services
companies.
African American income levels are rising faster than average with close to
two million African American households registering incomes of at least
$75,000. The aggregate income of most affluent Black families is at $116
billion and climbing. The number of African American homeowners has grown by a
third in the last decade.
There are comparatively few affinity, co-branded and reward cards targeted
specifically to the African American community. This is true for both credit
and debit cards. However, the high level of unbanked and underbanked helps
explain the introduction of affinity and co-branded prepaid cards marketed
primarily to the African American community.
Report Methodology
Census Bureau data cited in this report include the March 2006, 2005 and 2004
Current Population Surveys as well as a number of updated estimates and
analyses of the African American population released by the Census Bureau in
2005. Other U.S. Government sources include the Consumer Expenditures Survey
of the Bureau of Labor Statistics (BLS) and various data bases maintained by a
range of other agencies including the U.S. Center for Education Statistics and
the U.S. Department of Commerce.
Packaged Facts also relied on data compiled by Simmons Market Research Bureau
(New York, NY) in its fall 2006 consumer survey, which is based on 24,467
respondents.
About the Author
Luis Clemens is a former CNN bureau chief who now specializes in reporting on
multicultural marketing and media. His work has appeared in trade publications
such as Broadcasting&Cable, Card Technology, Multichannel News and Prepaid
Trends. Clemens is widely considered an expert on pay television networks
targeting African American, Asian American and Latino audiences.
How You Will Benefit from this Report
African Americans and Credit, Debit and Prepaid Cards: Valuable but
Overlooked, a new report from Packaged Facts, offers an in-depth look at card
usage patterns among African Americans. The report provides an overview of the
African American community in the U.S., including a look at financial trends
in the African American consumer market, and key demographic characteristics
of the African American population. In addition, the study provides extensive
analysis of attitudinal drivers, credit and debit card brand preference as
well as monthly versus yearly credit and debit card usage. Lastly, the report
explores the growth factors, insights and risks associated with intensive
targeting of African-American users.
This report will help:
- Marketing Managers identify market opportunities and develop targeted
promotion plans.
- Research and development professionals stay on top of competitor
initiatives and explore African American attitudes and behavior re: card
products.
- Advertising agencies working with clients in the card industry understand
the African American buyer to develop messages and images.
- Business development executives understand the dynamics of the market and
identify possible partnerships.
- Information and research center librarians provide market researchers,
brand and product managers and other colleagues with the vital information
they need to do their jobs more effectively.
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