Three Facts About the Underserved All Credit Unions Should Know
For an industry that has both a statutory mandate and a mission to provide services to people of modest means, the FDIC’s annual report on the unbanked and under banked provides an important source of information about what needs to be done to address the fact that millions of Americans do not access the most basic stepping stone of financial stability. Three statistics speak volumes to me.
- 17.7% of unbanked households are foreign-born non-citizens; and young people also make up a disproportionate number of those who do not access traditional financial services.
- The unbanked and under banked are increasingly turning to alternative financial services, such as prepaid debit cards. Those individuals who have had a bank account in the past are more likely to consider it important to have one in the future. In fact, the FDIC estimates “that about 15% of previously banked households may not choose to be unbanked but face institutional barriers related to opening or maintaining an account.”
- Not having enough money or not needing or wanting an account are the top reasons for not having an account across all demographic groups.