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May 18, 2007, Newsletter Issue #65: About Fringe Banking
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Tip of the Week
Fringe banking is the term that has been coined to describe the core users of services offered by check cashing stores and fast cash lenders. Fringe banking is also referred to as the non-bank financial industry, members of which are called the "unbanked." Hardly a tiny industry, fringe banking transactions account for approximately $200 billion in transactions according to the Treasury Department. Fringe banking is growing at a phenomenal rate. Today there are as many as 7,000 fast cash lenders, with an estimated 20,000 to 25,000 expected to set up shop across the U.S. in the next six to eight years.
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