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October 29, 2014
FDIC survey shows unbanked decline
The FDIC's 2013 National Survey of Unbanked and Underbanked Households report shows unbanked households declined from 8.2 percent to 7.7 percent in two years.
Meanwhile, the percentage of underbanked households remained at 20 percent from 2011 to 2013. The agency estimated that the 0.5 percentage point decline in the unbanked comprised 1.5 million people, or more than 500,000 households.
The survey also found that roughly 25 percent of households have used alternative financial services such as payday loans at least once, which is the same percentage as in 2011.
Of the unbanked households remaining, 35.6 percent said the main cause was not having enough money for an account (or minimum balance requirement), and 34.1 percent said job loss or income loss contributed to being unbanked. More unbanked consumers had used prepaid debit cards recently than underbanked consumers: 22.3 percent compared to 13.1 percent.
The NAFCU research team reports that 72.7 percent – or 4,676 – federally insured credit unions offer free checking accounts.
The FDIC suggested financial institutions develop strategies to maintain relationships through obstacles such as job loss, look into checkless checking accounts, and expand mobile banking initiatives, in order to reach unbanked and underbanked consumers.
Meanwhile, the percentage of underbanked households remained at 20 percent from 2011 to 2013. The agency estimated that the 0.5 percentage point decline in the unbanked comprised 1.5 million people, or more than 500,000 households.
The survey also found that roughly 25 percent of households have used alternative financial services such as payday loans at least once, which is the same percentage as in 2011.
Of the unbanked households remaining, 35.6 percent said the main cause was not having enough money for an account (or minimum balance requirement), and 34.1 percent said job loss or income loss contributed to being unbanked. More unbanked consumers had used prepaid debit cards recently than underbanked consumers: 22.3 percent compared to 13.1 percent.
The NAFCU research team reports that 72.7 percent – or 4,676 – federally insured credit unions offer free checking accounts.
The FDIC suggested financial institutions develop strategies to maintain relationships through obstacles such as job loss, look into checkless checking accounts, and expand mobile banking initiatives, in order to reach unbanked and underbanked consumers.
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