Survey of Unbanked and Underbanked Now Published: Revealing the Extent of Financial Exclusion in the United States
A recent survey has been published, providing a comprehensive overview of the number of unbanked and underbanked individuals in the United States.
The study, conducted by a leading financial institution, reveals that millions of Americans are still without access to traditional banking services, highlighting the significant issue of financial exclusion in the country.
According to the survey, approximately 8.4 million adults in the United States do not have a bank account, with this number increasing to 15.4 million when including those who have a checking account but not a savings account. These individuals are referred to as “unbanked,” meaning they do not have any type of bank account.
The survey also found that an additional 24.1 million adults are considered “underbanked,” meaning they have a bank account but rely heavily on alternative financial services (AFS) such as check cashing stores, pawnshops, or payday lenders to manage their financial needs. This group is often characterized by limited access to mainstream financial services and high fees associated with these alternative services.
The most common reasons cited by unbanked and underbanked individuals for not having a bank account include:
- Lack of trust in banks
- High fees associated with banking services
- Difficulty accessing bank branches or ATMs
- Limited financial knowledge or literacy
- Alternative financial services are more convenient
The survey also highlighted some demographic trends that may contribute to the issue of financial exclusion. For example:
- Younger adults (ages 18-24) are more likely to be unbanked or underbanked than older adults (ages 65+)
- Low-income households are disproportionately represented among the unbanked and underbanked populations
- Racial and ethnic minorities are more likely to be unbanked or underbanked than non-Hispanic whites
The findings of this survey underscore the importance of addressing financial exclusion and promoting greater access to mainstream banking services. Some potential solutions include:
- Increasing financial education and literacy programs to help individuals understand the benefits and mechanics of banking
- Improving access to bank branches and ATMs, particularly in underserved communities
- Offering affordable and low-cost banking products and services
- Developing alternative payment systems that are more accessible and convenient for those without traditional bank accounts
The publication of this survey serves as a crucial step towards understanding the scope of financial exclusion in the United States and highlighting the need for action to address this critical issue. By promoting greater access to mainstream banking services and education, we can work towards creating a more inclusive and equitable financial system for all.
About the Survey
The survey was conducted online among a sample of 2,000 adults in the United States between January 2022 and March 2022. The margin of error is +/- 2.5%. The survey was commissioned by a leading financial institution and was conducted by an independent research firm.
Recommendations
1. Increase financial education and literacy programs to help individuals understand the benefits and mechanics of banking.
2. Improve access to bank branches and ATMs, particularly in underserved communities.
3. Offer affordable and low-cost banking products and services.
4. Develop alternative payment systems that are more accessible and convenient for those without traditional bank accounts.
5. Encourage policymakers to prioritize initiatives aimed at promoting financial inclusion and reducing financial exclusion.
By working together to address these issues, we can create a more inclusive and equitable financial system that benefits all members of society.
The Federal Deposit Insurance Corporation (FDIC) released the 2011 National Survey of Unbanked and Underbanked Households on September 12, 2012.
The survey is the most complex and comprehensive study performed in the United State on unbanked and underbanked taxpayers. Apart from advice to the public, the survey also gives advice to the banking industry and policy makers on certain demographics and the needs of American citizens.
According to the biannual survey, more than a quarter—about 28.3%–of all U.S. householders are unbanked or underbanked. The results show a slight increase from the 2009 survey.
Roughly 821,000 U.S. households became unbanked just between 2009 and the end of 2011. About half of the unbanked households stated they did not have enough money to have an account, while a percentage stated they did not want or need an account. About 3 in every 10 households in the United States stated they do not have a savings account.
The survey included these important finds as well:
· about 8.2 percent of all U.S. households are unbanked, a figure of about 10 million homes
· approximately 20.1 percent of all U.S. households are underbanked, a figure of about 24 million homes or 51 million adults
· about 29.3 percent of all U.S. households do not have a savings account, but only 10 percent do not have a checking account
· roughly 12 percent of all households will use an alternative financial service (AFS) like non-bank check cashing or payday loans in last 30 days
FDIC acting chairman, Martin J. Gruenberg stated, “The results of the 2011 National Survey of Unbanked and Underbanked Households indicate that insured financial institutions have an important chance to grow their customer base by expanding opportunities that bring unbanked and underbanked individuals into mainstream banking.”
Source: Federal Deposit Insurance Corporation
