Case Study: Easy Check Cashing in Shawnee, KS

Introduction

In the early 2000s, the financial landscape in the United States began to shift dramatically, with many individuals seeking alternative financial services due to various economic pressures. Among the establishments that emerged during this time was Easy Check Cashing, located in Shawnee, Kansas. This case study explores the inception, operations, challenges, and impact of Easy Check Cashing, shedding light on the role it played in the local economy and the lives of its customers.

Background

Shawnee, Kansas, a suburb of Kansas City, has a diverse demographic characterized by a mix of middle-class families, young professionals, and a significant number of individuals facing financial challenges. The late 1990s and early 2000s saw a rise in the number of people living paycheck to paycheck, leading to an increased demand for alternative financial services such as check cashing, payday loans, and Order Express money transfers. Easy Check Cashing was established in this context, aiming to provide convenient financial solutions for those who struggled to access traditional banking services.

Inception of Easy Check Cashing

Easy Check Cashing was founded in 1999 by a group of entrepreneurs who recognized the growing need for check cashing services in Shawnee. The founders, having backgrounds in finance and customer service, aimed to create a business that was not only profitable but also served the community. They identified a gap in the market where many individuals were either unbanked or underbanked, meaning they lacked access to standard banking services.

The founders secured a small storefront in Shawnee, strategically located near public transportation routes and residential areas, Order Express ensuring easy access for customers. The business model was straightforward: provide quick and reliable check cashing services, along with other financial products, such as money orders and bill payment services.

Services Offered

Easy Check Cashing primarily focused on the following services:

1. Check Cashing: The core service of the business, allowing customers to cash personal checks, payroll checks, and government checks without the need for a bank account. This service was particularly beneficial for individuals who did not have access to traditional banking services.



2. Money Orders: Easy Check Cashing offered money Order Express services as a safe and reliable alternative to cash. This service appealed to customers who needed to send money securely without using cash or checks.



3. Bill Payment Services: The business provided bill payment services, enabling customers to pay their utility bills, rent, and other expenses directly from the store, which was convenient for those without bank accounts.



4. Prepaid Debit Cards: To cater to the needs of the unbanked population, Easy Check Cashing introduced prepaid debit cards that customers could load with funds, allowing them to make purchases and manage their finances without needing a traditional bank account.

Target Market

Easy Check Cashing primarily targeted individuals and families in Shawnee and the surrounding areas who faced financial difficulties. The customer base included:

• Unbanked Individuals: Many customers did not have bank accounts due to various reasons, including past banking issues, lack of identification, or a general distrust of financial institutions.



• Low-Income Families: Families living paycheck to paycheck often relied on check cashing services to access their funds quickly, especially during emergencies or unexpected expenses.



• Young Professionals: Some young professionals preferred using alternative financial services for convenience, especially if they had just entered the workforce and were not yet established with a bank.