Consumers and business owners are giving banks the cold shoulder, according to a new interview with Lisa Servon, author of the new book “The Unbanking of America” and board member for the Association of Enterprise Opportunity. Servon, who went as far as working as a teller at a check cashing agency and a payday loan service to get solid research, found that a large number of people are turning toward alternative funding solutions, such as pre-paid debit cards and payday lenders, because they felt traditional lenders aren’t meeting their needs and aren’t transparent.
Some said they actually save money by using alternative institutions, despite the extra costs, because they can anticipate the fees, which are lower than unexpected bank overdraft charges. It seems a lack of transparency and flexibility coupled with less personal connections to banks and their employees are a few of the reasons consumers and business owners alike are turning their backs on banks.
Photo Credit: JIRAIST, Twenty20