1

Overview of the 2011 FDIC 

National Survey of Unbanked 

and Underbanked Households

Advisory Committee on Economic Inclusion

September 12, 2012

Yazmin Osaki

Susan Burhouse
2

Unbanked/Underbanked 

Survey Team

 Division of Depositor and Consumer Protection: 

Susan Burhouse, Sarah Campbell, Timothy 

Critchfield, Keith Ernst, Ryan Goodstein, Yazmin 

Osaki, Luke Reynolds and Sherrie Rhine

 Division of Insurance and Research: David 

Chapman, Eric Robbins and Katherine Samolyk

 Legal Division: Leneta Gregorie
3

Agenda

 Background

 Top Level Results

 Banking Status and Account Ownership

 Use of Alternative Financial Services

 Likelihood of Opening an Account

 Implications and Conclusions
4

Background

 Objectives and statutory mandate

 FDIC household survey

 Administered in June 2011 as a supplement to the 

Census CPS to nearly 45,000 households (84% response 

rate)

 Designed to yield estimates of the number of unbanked 

and underbanked households; their demographic 

characteristics, and the reasons why they are unbanked 

and underbanked 

 First survey administered in January 2009 and released 

in December 2009 

 FDIC bank survey

 Results scheduled to be released in 2012 
5

FDIC Household Survey 

Highlights
6

Summary Findings

 Opportunity to increase banking engagement 

 8.2 percent of households are unbanked (0.6 percentage point 

increase from 2009)

 20.1 percent are underbanked

 Opportunity to increase savings account 

ownership

 29.3 percent of households do not have a savings account 

(10.3 percent do not have a checking account)

 A sizeable portion of households use AFS

 One quarter of households have used AFS in the last year (10 

percent have used 2 or more AFS)

 12 percent have used AFS in the last 30 days (40 percent of 

unbanked and underbanked)
7

Distribution of Household 

Banking Status

Underbanked, 

20.1

Unbanked, 8.2

Fully Banked, 

68.8

Banked, but 

Underbanked 

Status 

Unknown,* 2.9

Notes: Percentages are based on 120.4 million U.S. households. Percentages may not sum to 100 because of rounding. 

* These households are banked, but there is not enough information to determine if they are underbanked. 
8

2009-2011 Changes in 

Unbanked Rates and AFS Use

7.6

17.4

8.2

18.3

0

5

10

15

20

25

Unbanked Banked AFS Users*

Percentage of Households

2009 2011

*For comparability purposes, the estimates include households that have an account, but used non-bank check cashing, non-bank money orders, payday loans, 

rent-to-own, and pawn shops in the last year. The estimates exclude non-bank remittances and refund anticipation loans because the 2009 survey did not ask 

about non-bank remittances and asked about the use of refund anticipation loans in the last five years as opposed to the last year.
9

Revised Underbanked 

Definition

AFS

Timing of Use

2009 2011

Non-Bank Money Orders

Non-Bank Check Cashing

Payday Lending

Pawn Shops

Rent-to-Own

Used at 

least once or 

twice a year

Used in 

the last 

year

RALs Used in the 

last 5 years

Non-Bank Remittances Not included
10

Unbanked and Underbanked 

Rates by Demographic Groups
11

Unbanked and Underbanked 

Rates for Select Groups

Percent Percent Percent

Select Demographic Groups Unbanked Underbanked Fully Banked

All households 8.2 20.1 68.3

Blacks 21.4 33.9 41.6

Hispanics 20.1 28.6 48.7

Foreign-born noncitizens 22.2 28.9 45.8

Unemployed householder 22.5 28.0 47.5

Income below $15,000 28.2 21.6 47.6

Unmarried female family 

households 19.1 29.5 48.4

Under age 24 householder 17.4 31.0 49.7
12

Unbanked and Underbanked 

Households by Race/Ethnicity

2.7

33.9

28.6

26.8

30.2

16.1 16.6

21.4

20.1

14.5

6.2

4.0

0

5

10

15

20

25

30

35

40

Black Hispanic nonBlackAmerican

Indian/Alaskan

Hawaiian/Pacific

Islander

White non-Black

non-Hispanic

Asian

Percentage of Households

Unbanked Underbanked
13

Unbanked and Underbanked 

Households by Income

28.2

11.7

4.9

2.0

0.4

21.6

25.5

23.3

18.9

13.8

0

5

10

15

20

25

30

Less than $15,000 Between $15,000

and $30,000

Between $30,000

and $50,000

Between $50,000

and $75,000

At Least $75,000

Percentage of Households

Unbanked Underbanked
14

Unbanked and Underbanked 

Households by Household Type

29.5 29.4

18.5 17.5

3.7

14.3

19.1

9.5

0

5

10

15

20

25

30

35

Unmarried female

family household

Unmarried male

family household

Married couple Non-family

household

Percentage of Households

Unbanked Underbanked
15

Unbanked and Underbanked 

Households by Age

9.3 8.1

5.5

3.9

31.0

24.5

23.0

21.6

18.4

11.4

17.4

12.7

0

5

10

15

20

25

30

35

15 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 64 years 65 years or

more

Percentage of Households

Unbanked Underbanked
16

Unbanked Households by 

Region and State
17

Underbanked Households by 

Region and State
18

Household Demographic 

Composition by Banking 

Status
19

Household Composition by 

Banking Status

 There are stark differences between the unbanked 

and banked

 Along some dimensions, the underbanked seem 

to be a blend of the unbanked and fully-banked 

populations: race, age, family type

b Along other dimensions, the underbanked seem 

much more similar to the fully-banked: 

employment and income
20

Distributions by Race

Unbanked

Fully Banked

Underbanked

Asian, 1.4

American 

Indian/Alaskan, 

2.0

Hispanic, 28.0

White, 33.7

Black, 34.7

Hawaiian/Pacific 

Islander, 0.2

American 

Indian/Alaskan, 

1.5

Asian, 3.4

White, 56.0 Black, 22.5

Hispanic, 16.2

Hawaiian/Pacific 

Islander, 0.3

American 

Indian/Alaskan, 

0.9

Black, 8.1

Hispanic, 8.1

Hawaiian/Pacific 

Islander, 0.2

Asian, 4.6

White, 78.1
21

Unmarried male 

family household, 

3.6

Unmarried female 

family household, 

9.1

Married couple, 

52.2

Nonfamily 

household, 35.0

Unmarried female 

family household, 

30.1

Nonfamily 

household, 40.1

Unmarried male 

family household, 

8.2

Married couple, 

21.5

Distributions by Household 

Type

Unbanked Underbanked

Fully Banked

Unmarried male 

family household, 

6.9

Nonfamily 

household, 29.9

Married couple, 

44.1

Unmarried female 

family household, 

19.0
22

Distribution by Income

Unbanked Underbanked

Fully Banked

Less than $15K, 

17.5

$15K-$30K, 23.3

$30K -$50K, 23.9

$50K -$75K, 17.1

At least $75K, 

18.3

At least $75K, 1.3 $50K -$75K, 4.4

$30K -$50K, 12.4

$15K-$30K, 26.1

Less than $15K, 

55.8

$30K -$50K, 20.5

$50K -$75K, 20.2

At least $75K, 

32.1

Less than $15K, 

11.2

$15K-$30K, 15.9
23

Distributions by Employment 

Unbanked Underbanked

Fully Banked

Employed, 

38.7

Unemployed, 

15.4

Not in Labor 

Force, 45.9

Not in Labor 

Force, 28.0

Employed, 

64.1

Unemployed, 

7.8

Not in Labor 

Force, 34.2

Employed, 

61.9 Unemployed, 

3.9
24

Unbanked Households
25

Previous Banking Status of 

Unbanked Households

Banked, 91.8

Unbanked, 8.2

Previously 

Banked, 3.7

Never-Banked, 

4.4

Previous 

Banking Status 

Unknown, 0.1

Notes: Percentages are based on 120.4 million U.S. households. Percentages may not sum to 100 because of rounding.
26

Main Reason Households are 

Unbanked

3.5

14.8

0.7

1.4

1.1

9.5

7.1

33.2

26.0

8.2

5.5

15.6

3.5

11.9

0.2

1.5

1.5

4.0

4.0

7.1

7.6

32.8

0 5 10 15 20 25 30 35

Do Not Know/ Refused

Other/ None of the Above

Banks do not offer the needed products or services

Banks do not have convenient hours or locations

Do not know how to open or manage an account

Previously had an account but the bank closed it

Bank account fees or minimum balance requirements

are too high

Don't like dealing with and/or don't trust banks

Can't open an account due to ID, credit, or banking

history problems

Do not need or want an account

Do not have enough money

Never-Banked

Previously Banked 
27

Types of Bank Accounts 

Owned by US Households
28

Account Ownership

Unbanked, 8.2

Banked but 

Unknown Type, 

1.5

Checking and 

Savings 

Accounts, 67.2

Savings 

Account Only, 

2.0

Checking 

Account Only, 

21.1

Notes: Percentages are based on 120.4 million U.S. households. Percentages may not sum to 100 because of rounding. 
29

Account Ownership by Banking 

Status

88.5

93.9

98.0

69.2 67.8

78.4

0

10

20

30

40

50

60

70

80

90

100

All Households Underbanked Fully Banked

Percentage of Households

Has Checking Account Has Savings Account
30

Account Ownership by 

Race/Ethnicity

75.7 73.3

79.1

90.3

93.3 93.5

77.0 74.9 71.4

61.3

51.9 52.6

0

10

20

30

40

50

60

70

80

90

100

Hispanic nonBlackBlack American

Indian/Alaskan

Hawaiian/Pacific

Islander

White non-Black

non-Hispanic

Asian

Percentage of Households

Has Checking Account Has Savings Account
31

Account Ownership by Income

65.9

83.5

91.9

95.7 97.9

37.4

56.3

69.8

80.5

89.3

0

10

20

30

40

50

60

70

80

90

100

Less than

$15,000

Between

$15,000 and

$30,000

Between

$30,000 and

$50,000

Between

$50,000 and

$75,000

At Least

$75,000

Percentage of Households

Has Checking Account Has Savings Account
32

Account Ownership by 

Household Type

76.5

81.2

93.8

86.5

53.7

58.1

78.9

63.0

0

10

20

30

40

50

60

70

80

90

100

Unmarried female

family household

Unmarried male

family household

Married couple Non-family

household

Has Checking Account Has Savings Account
33

Use of Alternative Financial 

Services
34

AFS Considered in the Survey

 Households were asked if they had ever used the following 

AFS and if so, whether they were used in the last year. For 

some AFS households were whether they had been used in 

the last 30 days

 Transaction AFS: 

 Non-bank money orders

 Non-bank check-cashing services

 Non-bank remittances

 Credit AFS: 

 Payday lending

 Pawn shops

 Refund anticipation loans (RALs)

 Rent-to-own agreements
35

Timing of AFS Use

*

Unknown, 2.9

Used in the Last 

Year, 25.4

Never Used, 54.3

Used Over a Year 

Ago, 17.4

Last 2-12 months, 

13.4

Last 30 days, 12.0

Notes: Percentages are based on 120.4 million U.S. households. Percentages may not sum to 100 because of rounding. 

*The AFS included in this measure are non-bank money orders, non-bank check cashing, non-bank remittances, payday loans, and pawn shops. 

Households were not asked whether they used rent-to-own agreements or RALs in the last 30 days.

*
36

Timing of AFS Use – Unbanked 

Households

Unknown, 5.1

Last 2-12 months, 

19.4

Last 30 days*, 

45.5

Used over a Year 

Ago, 9.4

Never used, 20.6 Used in the Last 

Year, 64.9

Notes: Percentages are based on 9.9 million unbanked households. Percentages may not sum to 100 because of rounding. 

*The AFS included in this measure are non-bank money orders, non-bank check cashing, non-bank remittances, payday loans, and pawn shops. 

Households were not asked whether they used rent-to-own agreements or RALs in the last 30 days.
37

Timing of AFS Use –

Underbanked Households

In Last 2-12 

months, 58.8

In Last 30 days*, 

41.2

Notes: Percentages are based on 24.2 million underbanked households. Percentages may not sum to 100 because of rounding. 

*The AFS included in this measure are non-bank money orders, non-bank check cashing, non-bank remittances, payday loans, and pawn shops. 

Households were not asked whether they used rent-to-own, or RALs in the last 30 days.
38

Households’ Use of Transaction 

and Credit AFS in the Last Year

Transaction Only, 

19.0

Transaction and 

Credit, 3.9

Credit Only, 2.1

Did Not Use, 71.2

Unknown,* 3.9

Notes: Percentages are based on 120.4 million households. Percentages may not sum to 100 because of rounding.

* "Unknown" includes: households were transaction products are used, but credit product use is unknown; households where credit products are used 

but transaction product use is unknown and households where there is no indication of any AFS use but some responses are missing. 
39

2009-2011 Changes in AFS 

Use by Banking Status

36.3

67.7

100

17.4

40.9

72.9

100

22.6

0

10

20

30

40

50

60

70

80

90

100

All Households Unbanked

Households

Underbanked

Households

Fully Banked

Households

Percentage of Households that Ever Used AFS

2009 2011

Notes: Non-bank remittances are excluded from this comparison because data on their use is not availabe for 2009. 
40

Number of AFS Used in the 

Last Year

29.5

71.0

26.4

16.4

26.9

35.5

71.2 8.4 4.0

2.1

8.6

0% 20% 40% 60% 80% 100%

Underbanked

Unbanked

All Households Banking Status

Percentage of Households

Used 0 AFS Used 1 AFS Used 2 or more AFS Unknown
41

Number of AFS Used in the 

Last 30 Days

57.3

47.9

84.4

34.2

27.4

9.1

6.2

16.2 8.5

2.6

3.9

2.2

0% 20% 40% 60% 80% 100%

Underbanked

Unbanked

All Households

Banking Status

Percentage of Households

Used 0 AFS Used 1 AFS Used 2 or more AFS Unknown

Notes: The AFS included in this measure are non-bank money orders, non-bank check cashing, non-bank remittances, payday loans, and pawn 

shops. Households were not asked whether they used rent-to-own, or RALs in the last 30 days.
42

Households’ Use of Specific 

AFS Products

3.7

4.5

5.5

93.5

92.6

92.8

89.9

91.7

84.6

18.3 64.6

7.7

2.9

1.7

1.2

1.5

14.5

2.9

2.2

3.2

2.5 2.8

2.7

2.5

2.6

2.4

2.1

2.6

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Refund Anticipation

Loan

Rent-to-Own

Payday Loan

Pawn Shop

Non-Bank Remittance

Non-Bank Check

Cashing

Non-Bank Money Order

Percentage of All Households

Used in last 12 months Used, but not in last 12 months Never Used Unknown

Notes: Percentages may not sum to 100 because of rounding.

"Unknown" includes households whose specific AFS use is unknown and those who used one or more specific AFS with timing unknown.
43

Unbanked Households’ Use of 

Specific AFS Products

5.1

10.5

9.2

49.1

5.3

6.7

5.7

9.1

9.7

84.7

81.6

86.6

72.9

81.9

48.1

35.6

6.6

6.6

6.6

1.6

3.4

38.0

3.1

10.0

5.5

4.7

6.0

5.8

0 10 20 30 40 50 60 70 80 90 100

Refund Anticipation Loan

Rent-to-Own

Payday Loan

Pawn Shop

Non-Bank Remittances

Non-Bank Check Cashing

Non-Bank Money Order

Percentage of Unbanked Households

Used in the Last 12 Months Not Used in Last 12 Months Never used Unknown*

Notes: Percentages are based on 9.9 million unbanked households. Percentages may not sum to 100 because of rounding.

* Includes households whose specific AFS use is unknown and those who used a specific AFS but the timing is unknown.
44

Underbanked Households’ Use 

of Specific AFS Products

7.9

10.2

14.4

22.8

71.2

7.6

6.7

8.5

8.1

5.4

4.6

3.6

9.2

5.9

68.2

81.5

79.7

84.6

86.3

20.2

88.6 0.8

0.7

0.8

0.8

0.5

0.5

0.3

0 20 40 60 80 100

Refund Anticipation Loan

Rent-to-Own

Payday Loan

Pawn Shop

Non-Bank Remittances

Non-Bank Check Cashing

Non-Bank Money Order

Percentage of Underbanked Households

Used in the Last 12 Months Not Used in Last 12 months Never Used Unknown*

Notes: Percentages are based on 24.2 million underbanked households. Percentages may not sum to 100 because of rounding.* Includes households 

whose specific AFS use is unknown and those who used a specific AFS but the timing is unknown.
45

Use of Specific AFS in the Last 

30 Days

32.1

25.0

3.9

0.5

2.7

28.0

8.9

5.7

3.2 2.7

0

5

10

15

20

25

30

35

Non-Bank

Money Order

Non-Bank

Check Cashing

Non-Bank

Remittance

Payday Loan Pawn Shop

Percentage of Households

Unbanked Underbanked

Note: Percentages are based on 9.9 million unbanked households and 24.2 million underbanked hosueholds. 
46

Number of Times Transaction 

AFS Used in the Last 30 Days

55.3

30.2

47.1

22.7

23.5

23.0

19.3

41.4

26.5

2.7

3.4

4.9

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Underbanked

Unbanked

All Households Banking Status

Percentage of Households

Used 1 time Used 2 times Used 3 or more times Unknown
47

Reasons Households Use AFS –

Transaction Products

Non-bank Money Orders Non-bank Check Cashing

Notes: Percentages based on unbanked and underbanked households that have ever used each product. Percentages may not sum to 100 because of 

rounding.

Unbanked Underbanked

0.9

5.2

2.3

27.3

3.8

2.0

19.4

39.1

0.9

9.3

0.4

1.7

2.5

2.5

28.0

54.7

0 10 20 30 40 50 60

Don't Know/ Refused

Other

Do not trust banks

Don't have a bank account

The place feels more comfortable than a bank

Banks do not sell money orders

Banks charge more for money orders

The place to purchase money orders is more

convenient

1.9

4.2

1.6

2.5

2.4

1.9

6.6

38.9

11.3

28.7

1.1

9.6

0.9

1.0

1.6

2.1

3.4

10.1

18.4

51.8

0 10 20 30 40 50 60

Don't Know/ Refused

Other

The place to cash checks asks for fewer IDs

Do not trust banks

Banks don't cash checks

Feel more comfortable than at a bank

Bank charges more to cash checks

Don't have a bank account

To get money faster

The place is more convenient
48

Reasons Households Use 

Non-bank Remittances

2.9

2.7

29.5

8.4

3.7

6.9

19.2

25.0

10.5

0.7

1.8

5.1

9.4

13.0

25.0

1.7

1.3

33.2

0 10 20 30 40 50 60

Don't Know/ Refused

Other

Do not trust banks

Don’t have a bank account

The place to give or send money feels more

comfortable than a bank

Banks don’t send money abroad

A bank charges more to send money abroad

The money gets there faster

The place to give or send money has more

convenient hours or location

Underbanked

Unbanked

Notes: Percentages based on 1.2 million unbanked households and 4.4 million underbanked households that have ever used non-bank remittances. 

Percentages may not sum to 100 because of rounding.
49

Reasons Households Use AFS –

Credit Products

Payday Lenders Pawn Shops

Notes: Percentages based on unbanked and underbanked households that have ever used each product. Percentages may not sum to 100 because of 

rounding.

Unbanked Underbanked

0.3

4.1

2.2

3.1

10.1

12.8

26.8

40.6

1.0

9.3

2.4

0.6

10.0

19.2

15.6

41.8

0 5 10 15 20 25 30 35 40 45

Don't Know/ Refused

Other

More comfortable at a pawn shop than at a

bank

Do not trust banks

The pawn shop is more convenient

Banks don't have small loans

Don't qualify for a bank loan

Easier to get money from pawn shop than

qualify for bank loan

1.9

6.5

4.1

0.6

9.8

25.2

17.6

34.2

1.9

0.3

1.7

13.0

13.6

19.7

42.3

7.4

0 5 10 15 20 25 30 35 40 45

Don't Know/ Refused

Other

Do not trust banks

Payday loan service feels more comfortable

than a bank

The payday loan place is more convenient

Don't qualify for bank loan

Banks don't make small-dollar loans

Easier to get a payday loan than to qualify for

a bank loan
50

Reasons Households Need AFS 

Credit Funds

3.4

7.5

0.1

0.9

1.6

4.3

9.5

19.1

53.6

4.3

13.8

0.6

2.5

2.2

4.7

11.8

17.1

43.0

0 10 20 30 40 50 60

Don't Know/ Refused

Other

For legal expenses

For medical, dental or death expenses

For school or childcare expenses

For special gifts or luxuries

For house or car repairs or to buy an appliance

To make up for job loss or decrease in income

For basic living expenses

Unbanked Underbanked

Notes: Percentages based on 1.6 million unbanked households and 5.6 million underbanked households that have ever used credit AFS. Percentages 

may not sum to 100 because of rounding. 
51

Characteristics of Heavy AFS 

Users

 Among households that have used AFS in the last 

30 day

 25.2 percent are unmarried female families

 29.1 percent are black and 23.5 percent are Hispanic

 44.4 percent live in the South

 Among households that have used multiple AFS 

in the last year

 38.0 percent are younger than 35

 29.7 percent are black and 24.3 percent are Hispanic

 26.8 percent are unmarried female families
52

Households That Used Multiple 

AFS by Account Type

Savings Account 

only, 4.1

 Checking and 

Savings 

Accounts, 37.9

Unbanked 

Household, 35.0

Checking Account 

only, 22.6

Has Bank 

Account of 

Unknown Type, 

0.4

Notes: Percentages are based on 10.3 million households that used 2 or more AFS in the last 12 months. Percentages may 

not sum to 100 because of rounding.
53

Household Use of Prepaid 

Debit Cards

9.9

12.2

18.8

5.7

16.4

8.1

10.1

17.8

26.8

10.8

17.4

7.3

0

5

10

15

20

25

30

All

households

Unbanked Previously

Banked

NeverBankedUnderbanked Fully Banked

Percentage of Households

2009 2011
54

Household Use of Payroll Cards

3.0 3.2

5.0

1.5

4.2

2.7 3.2

5.5

8.5

2.9

5.3

2.5

0

5

10

15

20

25

30

All

households

Unbanked Previously

Banked

Never-Banked Underbanked Fully Banked

Percentage of Households

2009 2011
55

Likelihood of Opening an 

Account
56

Unbanked Households’

Likelihood of Opening Account

21.7

39.0

22.2

26.0

18.9

29.4

6.6

16.1

24.4

48.0

20.4

13.5

0

10

20

30

40

50

60

 Very likely Somewhat likely Not too likely Not likely at all

Percentage of Unbanked Households

All Unbanked Previously Banked Never-Banked

Note: Percentages are based on 9.9 million unbanked households
57

Unbanked Households’ Likelihood 

of Opening an Account by AFS Use

39.4

50.9

39.3

26.1

32.2

27.2

0

10

20

30

40

50

60

70

Percentage of Households Likely to Open an Account

Any AFS Credit AFS Transaction AFS

Used AFS in the Last 12 Months Did Not Use AFS in the Last 12 Months

Note: Percentages are based on 9.9 million unbanked households
58

Unbanked Households’ Likelihood of 

Opening an Account by Household Type

37.9

32.1 32.0

24.7

56.7

63.5 62.6

67.2

40.9

54.8

0

10

20

30

40

50

60

70

80

90

100

Unmarried

Female Family

Unmarried Male

Family

Married Couple Individual Male

Household

Individual

Female

Household

Percentage of Unbanked Households

Likely Not Likely

Note: Percentages are based on 9.9 million unbanked households. 
59

Likelihood of Opening an 

Account by Age

51.2

40.3

29.0

19.2

43.8

65.3

10.9

41.3

83.5

72.1

54.8 54.9

0

10

20

30

40

50

60

70

80

90

100

Age 15-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 65+

Percentage of Unbanked Households

Likely Not Likely

Note: Percentages are based on 9.9 million unbanked households. 
60

Unbanked Households’ Reasons for 

Wanting to Open an Account

1.3

7.0

0.3

4.2

10.0

22.6

25.7

28.8

1.6

3.7

0.6

1.6

4.4

26.2

31.0

30.8

0 10 20 30 40 50 60

Unknown

Other

To send money to family and friends

To be able to apply for a loan or mortgage

To take advantage of direct deposit of paychecks

To save money for the future

To secure your money

To write checks and pay bills

Percentage of Unbanked Households

Never-Banked

Previously Banked

Note: Percentages are based on 5.3 million never-banked and 4.4 million previously-banked households. 
61

Implications
62

Implication 1

 Understanding segments better might 

increase the efficacy of economic 

inclusion strategies

 E.g., unbanked Hispanic households use AFS 

more actively than any other racial ethnic 

group (52% used AFS in the last 30 days), but 

30% use no AFS
63

Implication 2

 Having a bank account does not 

guarantee long term participation in 

the banking system

 Half of all unbanked households had an 

account previously 

 Nearly half (48.2 percent) of these report they are 

likely to open another

 Almost one-quarter of fully banked households 

used AFS in the past
64

Implication 3

 Experience with banks appears to 

have more positive perceptions of 

having an account and rely less on 

AFS

 E.g., unbanked households that previously had 

an account are more likely to see value in 

being in the banking system: 

 More likely to open an account

 Less likely to say “I don’t want or need an account”
65

Implication 4

 Banks might need to more clearly 

demonstrate the value of an account 

to AFS users

 AFS users perceived non-bank services to be 

more convenient, faster, less expensive, or to 

present lower barriers to qualification 

 E.g., mobile technologies that allow remote 

deposit capture might alter check cashing 

equation
66

www.economicinclusion.gov
67

Thank you