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Black Consumers and Financial Services - US By Mintel International


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Black Consumers and Financial Services - US By Mintel International

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Black Consumers and Financial Services - US By Mintel International

  1. 1. Black Consumers and Financial Services - US Mintel International Group Ltd. Report Highlight
  2. 2. About the Publisher Mintel Reports have been providing the world’s leading businesses with the insight and inspiration to create clever, targeted and successful marketing strategies for over 30 years. As an internationally recognised market analyst, Mintel produces some 600 Reports into European, US and UK-specific markets every year. Our series of Reports offers you a new understanding of all the major food and drink, consumer goods, retail, finance, leisure and travel markets. Mintel is also renowned for our research into changing consumer lifestyles and the implications for business. Each Report provides a unique overview of a market's dynamics and prospects, enabling you to devise effective business strategies for both the short-and long-term. While analysis of a market’s major players helps you track competitors or identify new entry points, innovative consumer research offers you the chance to tailor your services to consumer demand; a great way of boosting profits and growing your market share. Use Mintel Reports to find out what motivates or deters consumers from making purchase decisions, what they think about your business and discover how to best reach key target audiences.
  3. 3. According to the U.S. Census Bureau, the Black population represents 13% of the U.S. population and is expected to reach 43.8 million by 2018 – a 12% increase from 2008. Black consumers tend to be younger, female-headed households and larger households than the general market. Despite lower household incomes and higher unemployment rates, Black buying power is currently at $1 trillion. Black spending power is expected to climb to $1.3 trillion by 2017, representing a 313% gain from 1990. Higher education levels, and the resulting higher paying jobs, are the primary drivers behind this increasing purchasing power. Importantly, despite the impact the “Great Recession” had on Black consumers, expenditures across many categories remained stable and in some instances increased slightly. Black Consumers and Financial Services - US - July 2013 explores the following issues related to Blacks and financial services: Net worth of Black consumers is significantly less than that of White consumers. Given the relatively high rate of unemployment and the impact of the housing crisis, many African-Americans have less-than-perfect credit scores and significantly lower net worth than their White counterparts. According to an article in CNNMoney, White Americans have 22 times more wealth than Blacks – a gap that nearly doubled during the Great Recession. The median household net worth for Whites was $110,729 in 2010, versus $4,995 for Blacks (source: U.S. Census Bureau). Blacks are less likely to be homeowners, what are the implications for the insurance industry? Black consumers over index on mobile usage: Given African-Americans’ high usage of mobile and accessing the internet in that manner, to what extent does this apply to banking and other financial transactions? Black consumers are much more likely than Whites to be unbanked/underbanked and uninsured/underinsured: All things considered above, and because historically African-Americans have had a major distrust of the financial industry due to greater risk of being a victim to predatory lending practices, how can the industry develop a stronger relationship with the Black community?. As for insurance, particularly life insurance, African-Americans value life insurance because they don’t want to leave the burden on their families.
  4. 4. Definition This report builds on Mintel’s Black Consumers’ Share of Wallet – U.S., January 2010; Share of Wallet: Blacks – U.S., February 2013, and Retail Banking – U.S., October 2012. In addition, the report refers to: Blacks and Financial Services – U.S., March 2010. This report examines Black consumers’ attitudes and behaviors toward financial services. This report is an update of the July 2010 report. For clarification, the report will cover the following financial products and services: Insurance – auto, life, P&C, and health Financial – banking, investments, retirement plans, etc. Data sourcesConsumer survey data For the purposes of this report, Mintel commissioned exclusive consumer research through GMI of 2,005 Black adults aged 18+ with internet access. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in May 2013. Mintel selects survey respondents so that they are proportionally balanced to the entire U.S. adult population based on the key demographics of gender, age, household income, and region. While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race. View Report Black Consumers and Financial Services - US
  5. 5. View More Reports from this Publisher Title Date Analgesics - US - July 2013 July 01 2013 Apps and Applications - Ireland - July 2013 July 01 2013 Bread - Ireland - July 2013 July 01 2013 Consumer Attitudes Towards Debt - UK - July 2013 July 01 2013 E-Commerce - Europe - July 2013 July 01 2013 Foodservice - Ireland - July 2013 July 01 2013 Tablets - US - July 2013 July 01 2013 Canadian Loyalty in Financial Services - US - June 2013 July 01 2013
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