Alternative financial services (AFS) are
financial services provided outside traditional
banking institutions, on which many
low-income individuals depend. In developing countries, these services often take the form of
microfinance. In developed countries, the services may be similar to those provided by banks and include
payday loans,
rent-to-own agreements,
pawnshops,
refund anticipation loans, some subprime mortgage loans and
car title loans, and non-bank check cashing,
money orders, and money transfers. It also includes traditional
moneylending by door-to-door collection.