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 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, 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:


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.

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.

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.

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.

Elderly Customers: Older adults who received government checks often found it easier to cash their checks at Easy Check Cashing rather than dealing with banks.

Marketing Strategies


To attract customers, Easy Check Cashing implemented a variety of marketing strategies:


Community Engagement: The business actively participated in local events and community gatherings, establishing a presence in Shawnee. This involvement helped build trust and brand recognition among potential customers.

Promotions and Discounts: Easy Check Cashing offered promotional rates for first-time customers and discounts for repeat clients. These incentives encouraged new customers to try the service and fostered loyalty among existing clients.

Word of Mouth: Satisfied customers often referred friends and family to Easy Check Cashing, leading to organic growth in the customer base. The business focused on providing excellent customer service, which contributed to positive word-of-mouth marketing.

Online Presence: As the internet began to play a larger role in consumer behavior, Easy Check Cashing developed a simple website to provide information about its services, hours of operation, and contact details. The website allowed customers to learn more about the business and its offerings.

Operational Challenges


Despite its initial success, Easy Check Cashing faced several operational challenges:


Regulatory Compliance: The check cashing industry is heavily regulated, and Easy Check Cashing had to ensure compliance with state and federal laws. This included verifying customer identities, maintaining records, and adhering to anti-money laundering regulations. Navigating these regulations proved to be complex and time-consuming.

Competition: As the demand for alternative financial services grew, so did competition. Other check cashing businesses and payday loan companies began to emerge in Shawnee, leading to increased competition for customers. Easy Check Cashing had to continuously differentiate itself through customer service and pricing strategies.

Economic Fluctuations: The economic environment in the early 2000s was marked by fluctuations, including the aftermath of the dot-com bubble burst and the impending financial crisis of 2008. These economic changes affected the disposable income of potential customers, impacting the volume of business.

Customer Education: Many customers were unfamiliar with the costs associated with check cashing services and the potential pitfalls of using payday loans. Easy Check Cashing recognized the need to educate its customers about financial literacy and responsible borrowing to ensure they made informed decisions.

Impact on the Community


Easy Check Cashing played a significant role in the Shawnee community by providing essential financial services to those who needed them most. The impact included:


Financial Inclusion: By offering check cashing services, Easy Check Cashing contributed to financial inclusion, allowing unbanked individuals to access their funds and participate in the economy.

Job Creation: The establishment of Easy Check Cashing created job opportunities for local residents, contributing to the economic growth of Shawnee. The business employed tellers and customer service representatives, providing stable jobs in the community.

Support for Local Businesses: Easy Check Cashing's services enabled customers to pay bills and manage their finances more effectively, which, in turn, supported local businesses by ensuring that customers could pay for goods and services.

Community Education: The business took an active role in educating customers about financial literacy, helping them understand the implications of using check cashing services and encouraging responsible financial practices.

Conclusion


Easy Check Cashing emerged as a vital player in Shawnee, Kansas, during the early 2000s, addressing the needs of a growing population of unbanked and underbanked individuals. Through its commitment to providing accessible financial services, the business not only filled a critical gap in the local economy but also contributed to the overall well-being of the community. Despite facing challenges such as regulatory compliance and competition, Easy Check Cashing successfully navigated the evolving financial landscape, leaving a lasting impact on its customers and the Shawnee community. As the financial industry continues to evolve, the lessons learned from Easy Check Cashing's journey remain relevant for businesses looking to serve underserved populations effectively.