Bruce Murphy, an executive at KeyBank, tackled a new problem:

how to extend banking services to a new audience—people who use banks intermittently or not at all. It is a large group, estimated at 73 million people. Together, they spend an estimated

$11 billion in fees at places such as check-cashing outlets, money-wire companies, and paycheck lenders (companies offering cash advances on future paychecks).

However, they are a tough audience. Many of them have a deep distrust of banks or believe banks will not serve them.

Murphy also faced another tough audience: bank managers who feared attracting forgeries and other bad checks and thus losing money. One manager actually said, “Are you crazy? These are the very people we’re trying to keep out of the bank!”

To attract the new customers, KeyBank cashes payroll and government checks for a 1.5% fee, well below the 2.44% average for check-cashing outlets. The bank also started offering free financial education classes. In fact, the bank even has a program to help people with a history of bounced checks to clear their records by paying restitution and taking the financial education class.

The program is growing, among both check-cashing clients and branches offering the services, to the satisfaction of both audiences.16

■■ What are some other businesses that could expand services to underserved populations?

■■ What services would they offer?

■■ What problems would they encounter?

■■ What audience appeals could they use to attract clients or customers?