41 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Education and Outreach Efforts 

This chapter examines the following topics: 

 Banks’ perception of whether unbanked and underbanked individuals live in their market area 

 Financial education materials 

 Financial education and outreach efforts 

 Effectiveness of education and outreach programs 

 Activities to bring the unbanked and/or underbanked into the financial mainstream 

 Challenges in serving or targeting unbanked and/or underbanked populations 

These questions address aspects of the Congressional Questions 1 and 2: banks’ efforts to promote financial education 

and literacy and the effectiveness of these programs. 

Summary 

Banks are aware that unbanked and underbanked populations exist: An estimated 73 percent 

of banks believe that there are unbanked and/or underbanked populations in their service area. 

Banks efforts to provide education most often involve brochures: About two-thirds (63 

percent) of banks actively offer education materials with general banking information and brochures 

to the unbanked and/or underbanked populations. Among banks that do offer financial education 

materials, they cover the subjects of basic banking, savings programs, and home ownership 

products. Survey responses suggest that banks do not substantially differentiate education materials 

between the unbanked and the underbanked; they are typically grouped together as “noncustomers” in the banks’ perspective. Most banks have not evaluated the effectiveness of their 

financial education materials in establishing banking relationships with the unbanked and/or 

underbanked. Of those banks that have evaluated the effectiveness of their financial education 

materials in establishing banking relationships with the unbanked and/or underbanked, most 

indicate that the materials are effective. 

Financial Education and Outreach: In addition to educational materials, over half (53 percent) of 

banks teach financial literacy and education sessions that target the unbanked and/or underbanked. 

These banks, on average, have taught sessions for six years. Similar to education materials, the most 

common sessions include topics on basic banking and home ownership. The majority of banks (63 

percent) do not participate in education or outreach with other organizations that could bring 

unbanked and/or underbanked individuals into the conventional banking system. Of the 58 percent 

of banks that conduct off-premise financial education outreach, the most common places to visit are 

Chapter 

4
 42 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

high schools and community-based organizations; 78 percent of these banks visit high schools and 

53 percent visit community-based organizations. 

Other than basic materials and education sessions and outreach, banks’ efforts to educate and reach 

out to unbanked and/or underbanked individuals are limited. 

 While 17.5 percent of banks identify expanding services as a priority in the bank’s business 

strategy, 70.4 percent have not identified this as a priority. 

 About a quarter of banks use targeted marketing to reach the unbanked and/or underbanked 

individuals, and a higher percentage of banks in Tier 1 and 2 use targeted marketing than banks 

in Tier 3 (67 percent, 52 percent, and 23 percent, respectively). 

 About a third of banks work with corporate or business customers to provide services for 

un/underbanked employees. However, only 14 percent of banks that work with corporate or 

business customers offer payroll cards. 

 Less than a quarter of banks have conducted research on unbanked and/or underbanked 

consumers in their CRA area. 

 Less than one-fifth of banks undertake other efforts to encourage unbanked and/or 

underbanked individuals to open an account. 

Activities to bring the unbanked and/or underbanked banked into the financial 

mainstream: Survey respondents provided over 1,000 comments about various types of activities 

that could be effective in bringing unbanked individuals into the mainstream banking system. The 

main categories of activities cited are: outreach efforts, products and services, educational programs 

and materials, targeted marketing, mitigation of challenges and external barriers, distribution 

channels, and internal activities and initiatives. 

Challenges in serving or targeting unbanked and/or underbanked populations: The greatest 

challenges in serving the un/underbanked individuals are profitability issues and regulatory barriers, 

which are closely followed by fraud concerns, high cost of customer acquisition, and competition 

from alternative service providers. Lower ranking, but still important issues, are unfamiliarity with 

the population, internal challenges, and “other” considerations. 

Approximately 40 percent of banks perceive that there are regulatory impediments to providing 

products and services for the un/underbanked. 
 43 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Banks’ Perception of Whether Unbanked and 

Underbanked Individuals Live in Their Market 

Area 

Overall, an estimated 72.8 percent of banks perceive that there are unbanked or underbanked 

populations in their market area. 

Question II A. Does your bank perceive that there are unbanked and 

underbanked populations in your area? 

 Yes No Don’t Know 

QIIA. Figure 1. Does your bank perceive that there are unbanked and underbanked populations in your 

area? 

 Percent ‘Yes’ Weighted Frequency 

Overall 72.8% 5261

 

Tier 1 100% 25 

Tier 2 90.2% 478 

Tier 3 71.3% 4758 

 

Urban 76.3% 2601 

Rural 69.7% 2660 

 

New England 78.7% 350 

Mid-Atlantic 64.5% 372 

South Atlantic 75.3% 617 

East South Central 70.9% 474 

West South Central 76.4% 862 

East North Central 73.3% 939 

West North Central 66.0% 901 

Mountain 85.8% 435 

Pacific 71.7% 311 

In contrast, 16.5 percent of banks do not perceive any unbanked or underbanked populations in 

their area. The remaining 10.7 percent do not know. 

QIIA. Figure 2 Does your bank perceive that there are unbanked and underbanked populations in your 

area? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 91 1193 16.5

 Yes 510 5261 72.8

 Don't Know 64 773 10.7

 Total 665 7228 100.0

Missing System 20 212

Total 685 7440
 44 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There were few differences among regions in banks’ perceptions of an un/underbanked population 

in their market area. 

All Tier 1 banks perceive that there are un/underbanked populations in their market areas. In 

comparison, 90.2 percent of Tier 2 banks and 71.3 percent of Tier 3 banks perceive that there are 

un/underbanked populations in their market area. However, there were few differences between 

tiers in banks’ perceptions of an un/underbanked population. 

There were few differences between urban and rural banks in banks’ perceptions of an 

un/underbanked population in their market area. 

Financial Educat ion Materials 

The majority of banks provide educational materials for the unbanked and underbanked. Similarities 

in responses to the open-ended question (IIB-1) on the types of materials offered indicate that 

banks provide the same materials for unbanked consumers as they provide to underbanked 

consumers. The percentage of banks that provide basic banking educational materials to the 

unbanked (39.3 percent) is about the same as the percentage that provide these materials to the 

underbanked (38.4 percent). Savings (33.7 percent) and home ownership (31.3 percent) educational 

materials are the next most common type of materials provided to the unbanked. Materials on credit 

counseling and predatory and abusive lending are offered by less than 16 percent of banks. 

QIIA. Figure 3. Percentage of Banks Providing Types of Educational Materials 

Materials Provided For Unbanked For Underbanked 

Basic Banking 39.3% 38.4% 

Savings Programs 33.7% 33.6% 

Home Ownership/Mortgage Products 31.3% 32.7% 

Credit Counseling 13.0% 15.4% 

Predatory and Abusive Lending 11.8% 13.9% 

Other 7.3% 8.2% 

Question II B. Does your bank provide financial education materials (i.e., 

brochures, content on a website, etc.) aimed at the unbanked and/or 

underbanked on the following topics? Mark all that apply. 

Financial Education Materials For Unbanked For Underbanked 

Basic Banking (Deposit and Credit Products) 

Predatory /Abusive Lending Prevention 

Savings Programs 

Home Ownership/Mortgage Products 

Credit Counseling 

Other (Explain) 

Bank does not provide financial educational materials for 

This population (Skip to II.B.3 below) 
 45 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Overall, 39.3 percent of banks provide basic banking materials for the unbanked, and 38.4 percent 

provide them for the underbanked. 

QIIB. Figure 1. Basic Banking Unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 386 4513 60.7

 Yes 299 2927 39.3

 Total 685 7440 100.0

QIIB. Figure 2. Basic Banking Underbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 387 4580 61.6

 Yes 298 2860 38.4

 Total 685 7440 100.0

There were few differences among regions for basic banking materials provided by banks to the 

unbanked and underbanked. 

There is a difference between tiers for basic banking materials for both the unbanked and 

underbanked. For the unbanked, there are differences between Tier 1 (83.3 percent), Tier 2 (56.0 

percent), and Tier 3 (37.8 percent). Similarly for the underbanked, all three tiers were different. 

Among Tier 1 banks, 87.5 percent provide materials, compared with 58.5 percent of Tier 2 banks 

and 36.7 percent of Tier 3 banks. 

Note that the numbers labeled as counts in the tables represent weighted counts. 

QIIB. Figure 3. Tier 

Basic Banking Education Materials 

Tier 1 Tier 2 Tier 3 

 Unbanked Underbanked Unbanked Underbanked Unbanked Underbanked 

No Count 4 3 243 229 4266 4348

 % 16.7% 12.5% 44.0% 41.5% 62.2% 63.3%

Yes Count 21 22 309 323 2598 2516

 % 83.3% 87.5% 56.0% 58.5% 37.8% 36.7%

Total Count 25 25 551 551 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Also, there are few differences between urban and rural banks for basic banking materials provided 

by banks to the unbanked and underbanked. 

Overall, 11.8 percent of banks provide predatory lending materials for the unbanked, and 13.9 

percent provide them for the underbanked. 
 46 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB. Figure 4. Predatory Unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 576 6562 88.2

 Yes 109 878 11.8

 Total 685 7440 100.0

QIIB. Figure 5. Predatory Underbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 560 6407 86.1

 Yes 125 1033 13.9

 Total 685 7440 100.0

There are few differences among regions for predatory lending educational materials for both the 

unbanked and underbanked populations. 

There are differences between tiers for banks providing predatory lending educational materials for 

both the unbanked and underbanked populations. A larger percentage of Tier 1 banks (70.8 percent) 

offer predatory lending materials for the unbanked than in Tier 2 (24.5 percent) and Tier 3 (10.6 

percent). For the underbanked, these percentages remain fairly consistent across each tier, with 75.0 

percent, 27.7 percent, and 12.5 percent, respectively. 

QIIB. Figure 6. Tier 

Predatory Lending Education Materials 

Tier 1 Tier 2 Tier 3 

 Unbanked Underbanked Unbanked Underbanked Unbanked Underbanked 

No Count 7 6 416 399 6139 6002

 % 29.2% 25.0% 75.5% 72.3% 89.4% 87.5%

Yes Count 18 19 135 153 725 861

 % 70.8% 75.0% 24.5% 27.7% 10.6% 12.5%

Total Count 25 25 551 551 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference between urban and rural banks for predatory lending education materials 

offered to the unbanked and underbanked. More urban banks (14.5 percent) offer predatory lending 

materials to the unbanked than rural banks (9.4 percent). Also, more urban banks (16.2 percent) 

offer predatory lending materials to the underbanked than rural banks (11.8 percent). 
 47 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB. Figure 7. Urban/Rural 

Predatory Lending Education Materials 

Rural HQ Urban HQ 

 Unbanked Underbanked Unbanked Underbanked 

No Count 3587 3491 2976 2916

 % 90.6% 88.2% 85.5% 83.8%

Yes Count 373 469 505 564

 % 9.4% 11.8% 14.5% 16.2%

Total Count 3959 3959 3480 3480

 % 100.0% 100.0% 100.0% 100.0%

Overall, 33.7 percent of banks provide savings materials for the unbanked, and 33.6 percent provide 

them for the underbanked. 
 48 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB. Figure 8. Savings Unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 420 4934 66.3

 Yes 265 2506 33.7

 Total 685 7440 100.0

QIIB. Figure 9. Savings Underbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 418 4942 66.4

 Yes 267 2497 33.6

 Total 685 7440 100.0

There are differences among regions for banks offering savings materials for the unbanked, but no 

difference exists for the underbanked. Nearly one-half of the banks (49.1 percent) in the New 

England region offer savings materials for the unbanked, compared with a quarter of banks (25.5 

percent) in the Pacific and South Atlantic (24.4 percent) regions. 

QIIB. Figure 10. Region 

Savings Education Materials for Unbanked 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 227 368 650 497 715 824 1009 301 344

 % 50.9% 63.4% 75.6% 72.8% 60.7% 62.7% 71.5% 59.3% 74.5%

Yes Count 219 212 210 186 462 491 401 206 118

 % 49.1% 36.6% 24.4% 27.2% 39.3% 37.3% 28.5% 40.7% 25.5%

Total Count 446 581 860 683 1177 1316 1410 507 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference for banks offering savings materials for the unbanked and underbanked 

between tiers. A smaller percentage of Tier 3 banks (31.9 percent for unbanked, 31.7 percent for 

underbanked) provide savings materials than in Tier 1 (79.2 percent, 87.5 percent, respectively) and 

Tier 2 (54.1 percent, 54.7 percent, respectively). 

QIIB. Figure 11. Tier 

Savings Education Materials 

Tier 1 Tier 2 Tier 3 Unbanked Underbanked Unbanked Underbanked Unbanked Underbanked 

No Count 5 3 253 250 4676 4689

 % 20.8% 12.5% 45.9% 45.3% 68.1% 68.3%

Yes Count 20 22 298 302 2188 2174

 % 79.2% 87.5% 54.1% 54.7% 31.9% 31.7%

Total Count 25 25 551 551 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is no difference between urban and rural banks for banks offering savings materials for the 

unbanked and underbanked. 
 49 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Overall, 31.3 percent of banks provide home ownership materials for the unbanked, and 32.7 

percent provide them for the underbanked. 

QIIB. Figure 12. Home ownership unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 432 5111 68.7

 Yes 253 2329 31.3

 Total 685 7440 100.0

QIIB. Figure 13. Home ownership underbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 421 5004 67.3

 Yes 264 2436 32.7

 Total 685 7440 100.0

There are differences among regions for banks offering home ownership materials for the unbanked 

and underbanked. A smaller percentage of banks in the Pacific region (15.1 percent) offer these 

materials than in the New England (44.5 percent) and Mid-Atlantic regions (40.1 percent) for the 

unbanked. 

QIIB. Figure 14. Region 

Home Ownership Education Materials for Unbanked 

New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 247 348 643 438 797 848 1067 332 392

 % 55.5% 59.9% 74.8% 64.1% 67.7% 64.5% 75.7% 65.4% 84.9%

Yes Count 198 233 217 245 380 467 343 176 70

 % 44.5% 40.1% 25.2% 35.9% 32.3% 35.5% 24.3% 34.6% 15.1%

Total Count 446 581 860 683 1177 1316 1410 507 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Similarly for the underbanked, 20.8 percent of banks in the Pacific region offer home ownership 

materials compared with 45.5 percent in New England. 

QIIB. Figure 15. Region 

Home Ownership Education Materials for Underbanked 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East North 

Central 

West 

North 

Central Mountain Pacific 

No Count 243 371 629 424 834 804 998 335 365

 % 54.5% 63.8% 73.2% 62.1% 70.9% 61.1% 70.8% 66.1% 79.2%

Yes Count 203 210 230 259 343 512 412 172 96

 % 45.5% 36.2% 26.8% 37.9% 29.1% 38.9% 29.2% 33.9% 20.8%

Total Count 446 581 860 683 1177 1316 1410 507 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 50 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There are differences between tiers for banks offering home ownership materials for the unbanked 

and underbanked. A smaller percentage of banks in Tier 3 (29.3 percent for unbanked, 30.7 percent 

for underbanked) offer home ownership materials than in Tier 2 (54.1 percent and 56.0 percent, 

respectively) and in Tier 1 (83.3 percent and 87.5 percent, respectively). 

QIIB. Figure 16. Tier 

Home Ownership Education 

Materials for Unbanked Tier 1 Tier 2 Tier 3 

No Count 4 253 4854

 % 16.7% 45.9% 70.7%

Yes Count 21 298 2010

 % 83.3% 54.1% 29.3%

Total Count 25 551 6863

 % 100.0% 100.0% 100.0%

QIIB. Figure 17. Tier 

Home Ownership Education 

Materials for Underbanked 

 Tier 1 Tier 2 Tier 3 

No Count 3 243 4758

 % 12.5% 44.0% 69.3%

Yes Count 22 309 2105

 % 87.5% 56.0% 30.7%

Total Count 25 551 6863

 % 100.0% 100.0% 100.0%

There are slight differences between urban and rural banks for home ownership financial education 

materials offered to the unbanked and underbanked. About one-third (33.4 percent) of urban banks 

offer home ownership materials to the unbanked, compared with 29.5 percent of rural banks. For 

the underbanked, 35.2 percent of urban banks offer home ownership materials, compared with 30.6 

percent of rural banks. 

QIIB. Figure 18. Urban/Rural 

Home Ownership Education Materials 

 Rural HQ Urban HQ 

Unbanked Underbanked Unbanked Underbanked

No Count 2793 2748 2318 2255

 % 70.5% 69.4% 66.6% 64.8%

Yes Count 1166 1211 1162 1225

 % 29.5% 30.6% 33.4% 35.2%

Total Count 3959 3959 3480 3480

 % 100.0% 100.0% 100.0% 100.0%

Overall, 13.0 percent of banks provide credit counseling materials for the unbanked, and 15.4 

percent provide them for the underbanked. 

QIIB. Figure 19. Credit Counseling Unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 567 6475 87.0

 Yes 118 965 13.0

 Total 685 7440 100.0

QIIB. Figure 20. Credit Counseling Underbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 551 6294 84.6

 Yes 134 1146 15.4

 Total 685 7440 100.0

There are minimal differences among regions for banks offering credit counseling materials for the 

unbanked and underbanked. 
 51 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There are differences between tiers for banks offering credit counseling materials for the unbanked 

and underbanked. A smaller percentage of banks in Tier 3 (11.6 percent for the unbanked and 14.1 

percent for the underbanked) offer credit counseling materials than in Tier 2 (28.3 percent and 28.3 

percent, respectively) and Tier 1 (62.5 percent and 75.0 percent, respectively). 

QIIB. Figure 21. Tier 

Credit Counseling Education Materials 

 Tier 1 Tier 2 Tier 3 

 Unbanked Underbanked Unbanked Underbanked Unbanked Underbanked

No Count 9 6 395 395 6070 5893

 % 37.5% 25.0% 71.7% 71.7% 88.4% 85.9%

Yes Count 16 19 156 156 793 971

 % 62.5% 75.0% 28.3% 28.3% 11.6% 14.1%

Total Count 25 25 551 551 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are differences between urban and rural banks for credit counseling education materials 

offered to the unbanked and the underbanked. A higher percentage of urban banks (16.3 percent) 

offers credit counseling materials to the unbanked than among rural banks (10.0 percent). Less than 

one-fifth (18.4 percent) of urban banks offer credit counseling materials to the underbanked, while 

12.8 percent of rural banks do so. 

QIIB. Figure 22. Urban/Rural 

Credit Counseling Education Materials 

Rural HQ Urban HQ 

 

 Unbanked Underbanked Unbanked Underbanked 

No Count 3562 3453 2913 2841

 % 90.0% 87.2% 83.7% 81.6%

Yes Count 397 506 568 639

 % 10.0% 12.8% 16.3% 18.4%

Total Count 3959 3959 3480 3480

 % 100.0% 100.0% 100.0% 100.0%

Overall, 7.3 percent of banks offer another form of financial education materials to unbanked 

individuals, and 8.2 percent offer materials to underbanked individuals.

QIIB. Figure 23. Other Unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 619 6894 92.7

 Yes 66 546 7.3

 Total 685 7440 100.0

QIIB. Figure 24. Other Underbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 612 6833 91.8

 Yes 73 606 8.2

 Total 685 7440 100.0
 52 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Of the banks that indicate that they provide “other” financial education materials, seven banks 

describe other financial education materials not listed in Question II B. Responses include: identity 

theft (3), outreach programs, credit education, cash management, and the FDIC Money Smart CD. 

There are minimal differences among regions for banks that offer other financial education 

materials. 

There are differences between tiers for banks that offer other financial education materials for the 

unbanked and the underbanked. A smaller percentage of Tier 3 (6.6 percent for the unbanked, 7.4 

percent for the underbanked) banks provide materials than in Tier 2 (15.7 percent and 16.4 percent, 

respectively) and Tier 1 (33.3 percent and 41.7 percent, respectively). 

QIIB. Figure 25. Tier 

‘Other’ Financial Education Materials 

Tier 1 Tier 2 Tier 3 

 Unbanked Underbanked Unbanked Underbanked Unbanked Underbanked 

No Count 17 15 465 461 6412 6357

 % 66.7% 58.3% 84.3% 83.6% 93.4% 92.6%

Yes Count 8 10 87 90 451 506

 % 33.3% 41.7% 15.7% 16.4% 6.6% 7.4%

Total Count 25 25 551 551 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are differences between urban and rural banks for other financial education materials offered 

to the unbanked and the underbanked. A higher percentage of urban banks (9.4 percent) offer other 

materials to the unbanked than rural banks (5.5 percent). A higher percentage of urban banks (10.7 

percent) offer other materials to the underbanked than rural banks (5.9 percent). 

QIIB. Figure 26. Urban/Rural 

“Other” Financial Education Materials 

Rural HQ Urban HQ 

 

 Unbanked Underbanked Unbanked Underbanked 

No Count 3740 3727 3153 3107

 % 94.5% 94.1% 90.6% 89.3%

Yes Count 219 233 327 374

 % 5.5% 5.9% 9.4% 10.7%

Total Count 3959 3959 3480 3480

 % 100.0% 100.0% 100.0% 100.0%

Overall, 36.5 percent of banks do not offer financial education materials to the unbanked, and 36.6 

percent do not offer them to the underbanked. 
 53 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB. Figure 27. None Unbanked 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 457 4723 63.5

 Yes 228 2717 36.5

 Total 685 7440 100.0

QIIB. Figure 28. None Underbanked 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 458 4716 63.4

 Yes 227 2724 36.6

 Total 685 7440 100.0

There are differences between regions for banks that do not offer any educational materials for the 

unbanked and the underbanked. A larger percentage of Pacific (50.5 percent), South Atlantic (45.4 

percent), and Mountain (40.5 percent) banks do not offer any materials to the unbanked than New 

England banks (24.5 percent). 

QIIB. Figure 29. Region 

No Financial Education Materials for Unbanked 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central 

Mountai

n Pacific 

No Count 336 405 470 481 801 895 805 302 228

 % 75.5% 69.8% 54.6% 70.4% 68.0% 68.0% 57.1% 59.5% 49.5%

Yes Count 109 176 390 202 376 421 605 205 233

 % 24.5% 30.2% 45.4% 29.6% 32.0% 32.0% 42.9% 40.5% 50.5%

Total Count 446 581 860 683 1177 1316 1410 507 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

QIIB. Figure 30. Region 

No Financial Education Materials for Underbanked 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 309 391 487 481 804 912 791 312 228

 % 69.3% 67.4% 56.6% 70.4% 68.3% 69.3% 56.1% 61.5% 49.5%

Yes Count 137 189 373 202 373 403 619 195 233

 % 30.7% 32.6% 43.4% 29.6% 31.7% 30.7% 43.9% 38.5% 50.5%

Total Count 446 581 860 683 1177 1316 1410 507 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are differences between tiers for banks that do not offer any financial education materials for 

the unbanked and the underbanked. A larger percentage of Tier 3 banks (37.6 percent) do not offer 

any financial education materials to the unbanked than Tier 1 banks (4.2 percent). 
 54 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB. Figure 31. Tier 

No Financial Education Materials 

Tier 1 Tier 2 Tier 3 

 

 Unbanked Underbanked Unbanked Underbanked Unbanked Underbanked 

No Count 24 24 420 427 4279 4266

 % 95.8% 95.8% 76.1% 77.4% 62.4% 62.2%

Yes Count 1 1 132 125 2584 2598

 % 4.2% 4.2% 23.9% 22.6% 37.6% 37.8%

Total Count 25 25 551 551 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are no differences between urban and rural banks for banks that do not offer any financial 

education materials for the unbanked and the underbanked. 

Question II B-1. Please describe the types of materials provided for: 

a) Unbanked 

Banks’ responses to this question indicate that banks do not discern a difference between the 

unbanked and underbanked populations when providing financial education materials. Banks report 

that the majority of educational materials provided to these groups are identical. Materials aimed at 

these populations tend to be delivered in a passive manner in the form of brochures and pamphlets 

that often require non-customers to take initiative in learning more about services and products 

offered by financial institutions. 

Of the 326 banks that describe the types of materials provided to the unbanked, 161 identify 

distributing brochures as one of their strategies for reaching out to the unbanked population. 

Among the 161 banks that offer brochures, 134 either list “brochures” with no further explanation 

or identify brochures about general banking products such as checking and savings accounts. The 

remaining responses specify brochures covering topics such as budgeting, credit counseling, 

mortgages, or brochures written in foreign languages. Brochures are typically available in bank lobby 

areas, at seminars, and in other educational settings. 

Of the 326 banks that responded to Question II B-1, 97 indicate that information for the unbanked 

population may be found on the bank’s website or on the internet, in general. Additionally, 74 

respondents provide information in addition to a bank website with basic product information. 

These include Spanish language websites, home ownership information, and links to third-party 

educational materials. 

Eighty-four banks report some type of home ownership information. Twenty-one of these 

responses specify that they target first-time homebuyers. The remaining responses are about general 

home ownership and the different types of mortgages available. This information is available in the 

form of brochures, workbooks, seminars, and website tools. 

The use of third-party materials as a way to reach the unbanked population is cited in 64 comments. 

Forty responses refer to the FDIC’s Money Smart Program, and 13 relate to information from the 

American Bankers Association (ABA). 
 55 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Although the responses do not directly pertain to the question, 85 banks mention holding 

educational seminars, workshops, or outreach programs. Topics for these programs include financial 

literacy, home ownership, credit counseling, and predatory lending. 

b) Underbanked: 

Of the 330 banks that describe the types of materials provided to the underbanked, 270 report that 

they offer the same materials for the underbanked as they do for the unbanked. Among the 

remaining responses, the two most common answers are offering brochures (26 banks) and holding 

seminars or workshops (22 banks). 

Question IIB-2. Have the financial education materials helped to establish 

banking relationships with: 

a) Unbanked individuals?...... Yes... No....... Have not evaluated 

b) Underbanked individuals?. Yes... No....... Have not evaluated 

Overall, financial education materials have helped establish relationships with the un/underbanked 

at about 16 percent of all banks. 

QIIB-2. Figure 1. Have the financial education 

materials helped establish 

relationships with the unbanked? 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 20 182 2.5

 Yes 129 1153 15.6

 Does not 

provide 

materials 

258 3086 41.9

 Have not 

evaluated 273 2951 40.0

 Total 680 7371 100.0

Missing System 5 68

Total 685 7440

QIIB-2. Figure 2. Have the financial education 

materials helped establish 

relationships with the 

underbanked? 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 17 151 2.0

 Yes 135 1177 16.0

 Does not 

provide 

materials 

260 3126 42.4

 Have not 

evaluated 268 2918 39.6

 Total 680 7371 100.0

Missing System 5 68

Total 685 7440

There are minimal differences among regions for the effectiveness of the financial education 

materials. 

There is a difference between tiers for the effectiveness of financial education materials for the 

underbanked. As 43.9 percent of Tier 3 banks that do not provide materials for the underbanked is 

a lower percentage than for Tier 1 banks where all reported providing materials and 62.5 percent 

believe their materials have been effective. 
 56 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB-2. Figure 3A. Tier 

Effectiveness of Financial Education 

Materials for the Unbanked Tier 1 Tier 2 Tier 3 

No Count 0 31 150

 % .0% 5.7% 2.2%

Yes Count 13 156 984

 % 50.0% 28.3% 14.5%

Does not provide 

materials 

Count 1 146 2939

 % 4.2% 26.4% 43.3%

Have not evaluated Count 9 218 2721

 % 45.8% 39.6% 40.0%

Total Count 25 551 6795

 % 100.0% 100.0% 100.0%

QIIB-2. Figure 3B. Tier 

Effectiveness of Financial Education 

Materials for the Underbanked 

 Tier 1 Tier 2 Tier 3 

No Count 0 28 123

 % .0% 5.0% 1.8%

Yes Count 16 163 998

 % 62.5% 29.6% 14.7%

Does not provide 

materials 

Count 0 146 2980

 % .0% 26.4% 43.9%

Have not evaluated Count 9 215 2693

 % 37.5% 39.0% 39.6%

Total Count 25 551 6795

 % 100.0% 100.0% 100.0%

There are no differences between urban and rural banks for the effectiveness of the financial 

education materials. 
 57 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Financial Education and Outreach Efforts 

Question II B-3. Does your bank participate in education or outreach efforts 

with any organizations that could bring unbanked or underbanked 

individuals into the conventional banking system and/or reduce the use of 

nonbank financial services providers for unbanked individuals? Examples 

may include: employers who use payroll cards, government entities that use 

electronic benefit transfer (EBT) or prepaid cards, faith-based groups that 

provide cash assistance, etc. Yes No 

While 36.6 percent of banks participate in education or outreach with other organizations that could 

bring un/underbanked individuals into the conventional banking system, 63.4 percent of banks do 

not participate with an outside organization. 

QIIB-3. Figure 1. Does your bank participate in education or outreach with other organizations? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 363 4575 63.4

 Yes 303 2646 36.6

 Total 666 7221 100.0

Missing System 19 219

Total 685 7440

There are differences among regions for banks that partner with other organizations for outreach or 

education. A higher percentage of New England (50.1 percent) and Mountain banks (40.0 percent) 

partner than West North Central banks (25.6 percent). 

QIIB-3. Figure 2. Region 

Does your bank participate in education or outreach with other organizations? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 222 359 530 410 680 776 998 304 294

 % 49.9% 61.9% 62.7% 61.3% 60.3% 61.1% 74.4% 60.0% 68.4%

Yes Count 223 221 316 259 449 495 343 203 136

 % 50.1% 38.1% 37.3% 38.7% 39.7% 38.9% 25.6% 40.0% 31.6%

Total Count 446 581 846 669 1129 1271 1341 507 431

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference between tiers for banks that partner with other organizations for outreach or 

education. Proportionately, larger banks participate in education and outreach with organizations 

more frequently than smaller banks. All (100 percent) of Tier 1 banks partner with another 

organization, compared with 75.5 percent of Tier 2 banks and 33.3 percent of Tier 3 banks. 
 58 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIB-3. Figure 3. Tier 

Does your bank participate in education or outreach with 

other organizations? Tier 1 Tier 2 Tier 3 

No Count 0 132 4443

 % .0% 24.5% 66.7%

Yes Count 25 406 2215

 % 100.0% 75.5% 33.3%

Total Count 25 538 6658

 % 100.0% 100.0% 100.0%

There is a difference between urban and rural banks for participating in education or outreach with 

other organizations. A greater percentage (40.2 percent) of urban banks participate with other 

organizations than rural banks (33.4 percent). 

QIIB-3. Figure 4. Urban/Rural 

Does your bank participate in 

education or outreach with 

other organizations? Rural HQ Urban HQ 

No Count 2536 2039

 % 66.6% 59.8%

Yes Count 1272 1373

 % 33.4% 40.2%

Total Count 3809 3412

 % 100.0% 100.0%

Question II C. Does your bank teach (either directly or through a thirdparty) financial literacy and education sessions, such as classes or 

workshops, that target unbanked and/or underbanked individuals? Check 

all that apply. 

 Yes, at bank facilities Yes, at off-premise locations No 

The majority of banks (52.6 percent) teach financial literacy and education sessions. 

QIIC. Figure 1. Does your bank teach financial literacy and education sessions? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 274 3481 47.4

 Yes, at the bank 27 288 3.9

 Yes, off-premise 243 2555 34.8

 Yes, at the bank 

and off-premise 133 1027 14.0

 Total 677 7351 100.0

Missing System 8 89

Total 685 7440
 59 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a difference between regions for banks that teach financial literacy and education sessions. 

A greater percentage of New England banks (75.5 percent) teach sessions than among West North 

Central banks (42.5 percent). 

QIIC. Figure 2. Region 

Does your bank teach financial literacy and education sessions? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 109 267 475 277 485 612 803 239 212

 % 24.5% 47.0% 55.3% 41.4% 41.7% 47.1% 57.5% 47.5% 47.4%

Yes, at 

the 

bank 

Count 

41 14 27 27 31 58 58 27 3

 % 9.2% 2.4% 3.2% 4.1% 2.6% 4.5% 4.2% 5.4% .8%

Yes, 

offpremise 

Count 

164 167 251 274 517 442 386 198 155

 % 36.9% 29.4% 29.2% 40.9% 44.4% 34.1% 27.7% 39.4% 34.7%

Yes, at 

the 

bank 

and offpremise 

Count 

131 120 106 91 130 186 148 39 77

 % 29.4% 21.1% 12.3% 13.6% 11.2% 14.3% 10.6% 7.7% 17.1%

Total Count 446 567 860 669 1163 1298 1396 504 448

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference between tiers for banks that teach financial literacy and education sessions. A 

larger percentage of Tier 1 banks (100 percent) teach sessions than Tier 2 banks (83.4 percent) and 

Tier 3 banks (50.0 percent). 

QIIC. Figure 3. Tier 

Does your bank teach financial literacy and 

education sessions? Tier 1 Tier 2 Tier 3 

No Count 0 90 3391

 % .0% 16.6% 50.0%

Yes, at the bank Count 0 28 260

 % .0% 5.1% 3.8%

Yes, off-premise Count 5 239 2311

 % 20.8% 43.9% 34.1%

Yes, at the bank 

and off-premise 

Count 20 187 820

 % 79.2% 34.4% 12.1%

Total Count 25 544 6781

 % 100.0% 100.0% 100.0%

There is a difference between urban and rural banks for teaching financial literacy and education 

sessions that target the un/underbanked. A higher percentage of urban banks (57.2 percent) teach 

financial literacy than rural banks (48.6 percent). 
 60 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIC. Figure 4. Urban/Rural 

Does your bank teach 

financial literacy and 

education sessions? Rural HQ Urban HQ 

No Count 2000 1481

 % 51.4% 42.8%

Yes, at the bank Count 144 144

 % 3.7% 4.2%

Yes, off-premise Count 1419 1136

 % 36.5% 32.8%

Yes, at the bank 

and off-premise 

Count 325 702

 % 8.4% 20.3%

Total Count 3888 3463

 % 100.0% 100.0%

Question II C-1. If yes, for how long has your bank been providing the 

sessions? _____ (Mark 0 if don’t know) 

Banks that teach financial literacy and education sessions report that they have offered education 

sessions for a median of 4 years, with the maximum at 35 years. 

QIIC-1. Figure 1. If yes, how long has your bank been providing the sessions? 

N Valid 3485 

Missing 385 

Mean 5.99 

Median 4.00 

Mode 0 

Minimum 0 

Maximum 35 
 61 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIC-1. Figure 2. If yes, how long has your bank been providing the sessions? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Don't Know 88 844 24.2

 1 20 243 7.0

 2 1 14 .4

 2 24 206 5.9

 3 23 220 6.3

 4 24 234 6.7

 5 45 365 10.5

 6 11 130 3.7

 7 14 105 3.0

 8 1 14 .4

 8 12 113 3.2

 9 4 34 1.0

 10 51 461 13.2

 11 2 17 .5

 12 4 55 1.6

 14 2 27 .8

 15 18 149 4.3

 18 1 14 .4

 19 1 1 .0

 20 14 138 4.0

 21 2 27 .8

 23 1 1 .0

 25 2 5 .1

 30 4 55 1.6

 35 1 14 .4

 Total 370 3485 100.0

Missing System 33 385

Total 403 3870

There is no difference between tiers for the length of time banks have been providing educational 

sessions. 

There are no differences among regions for the length of time banks have been providing 

educational sessions. 

There is no difference between urban and rural banks for the length of time banks have been 

providing educational sessions. 
 62 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II C-2. If yes, mark all types of sessions that your bank provides: 

 ___ Basic Banking (Deposit and Credit Products) 

 ___ Home Ownership/Mortgage Products 

 ___ Predatory /Abusive Lending Prevention 

 ___ Credit Counseling 

 ___ Savings Programs 

 ___ Other __________ 

The two most common types of sessions provided by banks are basic banking (84.8 percent) and 

savings programs (70.9 percent). 

QIIC-2. Figure 1. Percent of Banks Teaching Financial Literacy by Type (among banks which provide 

sessions) 

Basic 

Banking 

Home 

Ownership 

Predatory/ 

Abusive 

Lending 

Credit 

Counseling Savings Other 

Overall 84.8% 55.2% 23.2% 33.6% 70.9% 23.4% 

Tier 1 92.0% 92.0% 79.2% 87.5% 87.5% 48.5% 

Tier 2 90.1% 79.4% 37.4% 51.9% 81.7% 25.2% 

Tier 3 84.4% 51.6% 20.9% 30.7% 69.3% 23.0% 

 

Urban 88.0% 65.8% 28.2% 37.9% 70.8% 27.6% 

Rural 81.8% 43.9% 18.0% 29.1% 70.9% 18.9% 

 

New 

England 

87.8% 86.9% 30.9% 38.0% 77.7% 21.7% 

MidAtlantic 87.0% 65.7% 24.7% 34.3% 75.7% 23.6% 

South 

Atlantic 

80.5% 56.4% 16.1% 19.0% 76.0% 25.8% 

East South 

Central 

87.5% 53.6% 28.0% 38.8% 69.9% 23.5% 

West 

South 

Central 

89.8% 39.9% 14.6% 34.4% 75.2% 18.4% 

East North 

Central 

78.6% 56.3% 27.9% 39.4% 64.9% 33.0% 

West 

North 

Central 

79.3% 44.0% 18.7% 26.8% 57.8% 12.6% 

Mountain 89.8% 58.7% 26.4% 41.9% 79.2% 27.5% 

Pacific 92.8% 60.4% 32.6% 31.5% 76.6% 29.7% 
 63 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIC-2. Figure 2. Basic Banking 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 54 580 15.2

 Yes 345 3235 84.8

 Total 399 3815 100.0

Missing System 4 55

Total 403 3870

QIIC-2. Figure 3. Home Ownership and Mortgage 

Products 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 147 1709 44.8

 Yes 252 2106 55.2

 Total 399 3815 100.0

Missing System 4 55

Total 403 3870

QIIC-2. Figure 4. Predatory and Abusive Lending 

Prevention 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 280 2928 76.8

 Yes 119 887 23.2

 Total 399 3815 100.0

Missing System 4 55

Total 403 3870

QIIC-2. Figure 5. Credit Counseling 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 235 2532 66.4

 Yes 164 1283 33.6

 Total 399 3815 100.0

Missing System 4 55

Total 403 3870

QIIC-2. Figure 6. Savings 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 102 1112 29.1

 Yes 297 2704 70.9

 Total 399 3815 100.0

Missing System 4 55

Total 403 3870

QIIC-2. Figure 7. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 299 2924 76.6

 Yes 100 892 23.4

 Total 399 3815 100.0

Missing System 4 55

Total 403 3870

Other types of sessions taught by the bank include: identity theft (20), school educational programs 

(16), investment products (9), lending and loan types (9), small business guidance (8), and financial 

literacy (8). 

There is a difference between tiers for some types of educational sessions provided, including home 

ownership and mortgage products, predatory and abusive lending prevention, and credit counseling. 

A higher percentage of Tier 1 banks (92.0 percent) offer home ownership education sessions than in 

Tier 2 (79.4 percent) and Tier 3 (51.6 percent), as well as for predatory and abusive lending (Tier 1: 

79.2 percent, Tier 2: 37.4 percent, Tier 3: 20.9 percent) and credit counseling (Tier 1: 87.5 percent, 

Tier 2: 51.9 percent, Tier 3: 30.7 percent). 
 64 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIC-2. Figure 8. Tier 

Types of Education Sessions Provided 

Tier 1 Tier 2 Tier 3 

 

 Basic 

Banking 

Home 

Ownership 

and 

Mortgage 

Products 

Predatory 

and 

Abusive 

Lending 

Prevention

Basic 

Banking

Home 

Ownership 

and 

Mortgage 

Products 

Predatory 

and 

Abusive 

Lending 

Prevention

Basic 

Banking 

Home 

Ownership 

and 

Mortgage 

Products 

Predatory 

and 

Abusive 

Lending 

Prevention

No Count 2 2 5 45 94 284 533 1613 2639

 % 8.0% 8.0% 20.8% 9.9% 20.6% 62.6% 16.0% 48.4% 79.1%

Yes Count 23 23 20 409 361 170 2803 1723 697

 % 92.0% 92.0% 79.2% 90.1% 79.4% 37.4% 84.0% 51.6% 20.9%

Total Count 25 25 25 454 454 454 3336 3336 3336

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

QIIC-2. Figure 9. Tier 

Types of Education Sessions Provided 

Tier 1 Tier 2 Tier 3 

 Credit 

Counseling Savings Other 

Credit 

Counseling Savings Other 

Credit 

Counseling Savings Other 

No Count 3 3 14 218 83 340 2311 1025 2570

 % 12.5% 12.5% 54.2% 48.1% 18.3% 74.8% 69.3% 30.7% 77.0%

Yes Count 22 22 11 236 371 114 1025 2311 766

 % 87.5% 87.5% 45.8% 51.9% 81.7% 25.2% 30.7% 69.3% 23.0%

Total Count 25 25 25 454 454 454 3336 3336 3336

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are no differences among regions for types of educational sessions provided, except for 

“other.” A higher percentage of the banks in the East North Central region (33.0 percent) offer 

other programs than banks in the West South Central (18.3 percent) and the West North Central 

region (12.7 percent). 

QIIC-2. Figure 10. Region 

“Other” Types of Education Sessions 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 263 230 285 300 520 451 518 192 166

 % 78.3% 76.5% 74.1% 76.4% 81.7% 67.0% 87.3% 72.4% 70.4%

Yes Count 73 71 99 92 117 222 75 73 70

 % 21.7% 23.5% 25.9% 23.6% 18.3% 33.0% 12.7% 27.6% 29.6%

Total Count 336 300 384 392 637 673 593 264 235

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is no difference between urban and rural banks for types of educational session provided. 
 65 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II D. Did your bank conduct off-premise financial education 

outreach visits targeted toward the unbanked or underbanked during 

calendar year 2007? 

 Yes No 

Over half (58.0 percent) of banks conducted off-premise financial education outreach visits in 2007. 

QIID. Figure 1. Did you conduct off-premise financial outreach in 2007? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 244 3078 42.0

 Yes 432 4248 58.0

 Total 676 7327 100.0

Missing System 9 113

Total 685 7440

There are no differences among regions for banks that conducted off-premise financial outreach in 

2007. 

There is a difference between tiers for banks that conducted off-premise financial outreach in 2007. 

Nearly all of Tier 1 banks (95.8 percent) conducted outreach visits, compared with 84.8 percent of 

Tier 2 and 55.7 percent of Tier 3. 

QIID. Figure 2. Tier 

Did you conduct off-premise financial outreach in 2007? 

 Tier 1 Tier 2 Tier 3 

No Count 1 83 2994

 % 4.2% 15.2% 44.3%

Yes Count 24 465 3760

 % 95.8% 84.8% 55.7%

Total Count 25 548 6754

 % 100.0% 100.0% 100.0%

There is little difference between urban and rural for banks that conducted off-premise financial 

outreach in 2007. 
 66 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II D-1. Please indicate which locations your bank has visited for 

outreach sessions: 

___ High Schools 

___ Employer Sites 

___ Public Gatherings/Fairs 

___ Local/State Government Sites 

___ Community–based Organizations 

___ Vocational Schools/Colleges 

___ Military Installations 

___ Other_________ 

Banks report that they work with a variety of external organizations to provide outreach to 

individuals in their market areas. High schools and community-based organizations are the most 

common places banks visit for outreach sessions, with 77.7 percent and 52.6 percent of banks 

offering outreach in conjunction with these off-premise locations, respectively. 

Military installations are the least frequently visited location for outreach sessions, with about 2.3 

percent of banks making visits among those that conducted off-premise financial outreach in 2007.6

 

QIID-1. Figure 1. Percent of Banks Offering Outreach by Location 

Outreach Location Percentage of 

Banks 

High Schools 77.7% 

Community–based Organizations 52.6% 

Public Gatherings/Fairs 37.3% 

Employer Sites 29.4% 

Other 24.0% 

Vocational Schools/Colleges 18.7% 

Local/State Government Sites 9.3% 

Military Installations 2.3% 

 

6 The distribution of military bases is not proportional to the communities served by participating banks, so the percentages may be higher or lower in 

different areas around the country. 
 67 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIID-1. Figure 2. High Schools 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 88 946 22.3

 Yes 344 3303 77.7

 Total 432 4248 100.0

QIID-1. Figure 3. Employer Sites 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 278 2998 70.6

 Yes 154 1251 29.4

 Total 432 4248 100.0

QIID-1. Figure 4. Public Gatherings 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 244 2663 62.7

 Yes 188 1586 37.3

 Total 432 4248 100.0

QIID-1. Figure 5. Local &State Government Sites 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 365 3853 90.7

 Yes 67 395 9.3

 Total 432 4248 100.0

QIID-1. Figure 6. Community-based 

Organizations 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 169 2012 47.4

 Yes 263 2236 52.6

 Total 432 4248 100.0

QIID-1. Figure 7. Vocational Schools 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 314 3454 81.3

 Yes 118 794 18.7

 Total 432 4248 100.0

QIID-1. Figure 8. Military Installations 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 412 4150 97.7

 Yes 20 99 2.3

 Total 432 4248 100.0

QIID-1. Figure 9. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 315 3229 76.0

 Yes 117 1019 24.0

 Total 432 4248 100.0

A total of 117 banks identify the following other locations: elementary and middle schools (54), 

churches and faith-based organizations (22), non-profit community groups (9), senior citizen or 

elderly homes (7), and seminars, programs, or shows (7). 

There are differences among regions for locations with off-premise financial outreach including high 

schools, employer sites, public gatherings, government sites, and community-based organizations. 

A greater percentage of East South Central (93.1 percent) banks conduct sessions at high schools 

than banks in New England (61.9 percent). 

QIID-1. Figure 10. Region: High Schools 

High Schools 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 116 55 38 31 151 237 150 86 82

 % 38.1% 18.6% 8.5% 6.9% 21.4% 29.8% 19.9% 31.9% 35.4%

Yes Count 189 241 405 416 555 559 606 182 150

 % 61.9% 81.4% 91.5% 93.1% 78.6% 70.2% 80.1% 68.1% 64.6%

Total Count 305 296 442 447 705 796 757 268 232

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 68 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

A greater percentage of East North Central banks (39.4 percent) conduct sessions at employer sites 

than banks in the West North Central (10.5 percent). 

QIID-1. Figure 11. Region: Employer Sites 

Employer Sites 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 233 217 305 278 459 482 677 174 173

 % 76.1% 73.4% 68.9% 62.2% 65.0% 60.6% 89.5% 65.1% 74.4%

Yes Count 73 79 138 169 247 313 80 93 59

 % 23.9% 26.6% 31.1% 37.8% 35.0% 39.4% 10.5% 34.9% 25.6%

Total Count 305 296 442 447 705 796 757 268 232

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

A greater percentage of banks in the Mountain region (56.6 percent) conduct sessions at public 

gatherings than banks in the South Atlantic region (23.4 percent). 

QIID-1. Figure 12. Region: Public Gatherings 

Public Gatherings 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 147 178 339 284 510 414 503 116 171

 % 48.2% 60.3% 76.6% 63.5% 72.3% 52.0% 66.4% 43.4% 73.9%

Yes Count 158 117 104 163 195 382 254 152 61

 % 51.8% 39.7% 23.4% 36.5% 27.7% 48.0% 33.6% 56.6% 26.1%

Total Count 305 296 442 447 705 796 757 268 232

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

A greater percentage of banks in the Mountain region (19.6 percent) conduct sessions at 

government sites than banks in the South Atlantic region (5.9 percent). 

QIID-1. Figure 13. Region: Local and State Government Sites 

Local and State Government Sites 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 287 262 416 415 606 710 750 215 192

 % 94.0% 88.5% 94.1% 92.9% 85.9% 89.2% 99.1% 80.4% 82.8%

Yes Count 18 34 26 32 100 86 7 52 40

 % 6.0% 11.5% 5.9% 7.1% 14.1% 10.8% .9% 19.6% 17.2%

Total Count 305 296 442 447 705 796 757 268 232

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

A greater percentage of New England banks (84.3 percent) conduct sessions at community-based 

organizations than banks in the Mountain region (38.8 percent). 
 69 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIID-1. Figure 14. Region: Community-based Organizations 

Community-based Organizations 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 48 92 219 186 407 362 455 164 79

 % 15.7% 31.3% 49.5% 41.6% 57.7% 45.5% 60.1% 61.2% 34.0%

Yes Count 258 203 224 261 298 433 302 104 153

 % 84.3% 68.7% 50.5% 58.4% 42.3% 54.5% 39.9% 38.8% 66.0%

Total Count 305 296 442 447 705 796 757 268 232

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are differences between tiers for off-premise financial outreach locations of employer sites, 

public gatherings, government sites, community-based organizations, vocational schools, military 

installations, and “other” sites. A greater percentage of Tier 1 banks conduct sessions at all of these 

locations than Tier 2 banks, and a greater percentage of Tier 2 banks conduct sessions at all of these 

locations than Tier 3 banks. 

QIID-1. Figure 15. Tier: High Schools/Employer Sites/Public Gatherings 

Off-Premise Outreach Locations 

Tier 1 Tier 2 Tier 3 

 High 

Schools 

Employer 

Sites 

Public 

Gatherings

High 

Schools

Employer 

Sites 

Public 

Gatherings

High 

Schools 

Employer 

Sites 

Public 

Gatherings

No Count 1 3 0 83 260 229 861 2734 2434

 % 4.3% 13.0% .0% 17.9% 56.0% 49.3% 22.9% 72.7% 64.7%

Yes Count 23 21 24 381 205 236 2898 1025 1326

 % 95.7% 87.0% 100.0% 82.1% 44.0% 50.7% 77.1% 27.3% 35.3%

Total Count 24 24 24 465 465 465 3760 3760 3760

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

QIID-1. Figure 16. Tier: Local and State Government Sites/ Community-based Organizations/ 

Vocational Schools 

Off-Premise Outreach Locations 

Tier 1 Tier 2 Tier 3 

 

 

Local and 

State 

Government 

Sites 

Communitybased Orgs Vocational 

Schools 

Local and 

State 

Government 

Sites 

Communitybased OrgsVocational 

Schools 

Local and 

State 

Government 

Sites 

Communitybased OrgsVocational 

Schools 

No Count 6 1 5 361 97 264 3486 1914 3186

 % 26.1% 4.3% 21.7% 77.6% 20.9% 56.7% 92.7% 50.9% 84.7%

Yes Count 18 23 19 104 368 201 273 1846 574

 % 73.9% 95.7% 78.3% 22.4% 79.1% 43.3% 7.3% 49.1% 15.3%

Total Count 24 24 24 465 465 465 3760 3760 3760

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 70 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIID-1. Figure 17. Tier: Military Installations/Other 

Off-Premise Outreach Locations 

Tier 1 Tier 2 Tier 3 

 Military 

Installations Other 

Military 

Installations Other 

Military 

Installations Other 

No Count 15 11 444 319 3691 2898

 % 60.9% 47.8% 95.5% 68.7% 98.2% 77.1%

Yes Count 9 13 21 146 68 861

 % 39.1% 52.2% 4.5% 31.3% 1.8% 22.9%

Total Count 24 24 465 465 3760 3760

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are differences between urban and rural banks for the locations of off-premise financial 

education sessions, including high schools, employer sites, public gatherings, government sites, 

community-based organizations, vocational schools, and “other” sites. 

QIID-1. Figure 18. Rural 

Off-Premise Outreach Locations 

Rural HQ 

 

 High 

Schools 

Employer 

Sites 

Public 

Gatherings

Local and 

State 

Government 

Sites 

Communitybased 

Organizations

Vocational 

Schools 

Military 

Installations Other 

No Count 352 1727 1580 2089 1241 1904 2182 1792

 % 15.8% 77.4% 70.8% 93.7% 55.7% 85.4% 97.8% 80.4%

Yes Count 1878 503 650 140 989 325 48 438

 % 84.2% 22.6% 29.2% 6.3% 44.3% 14.6% 2.2% 19.6%

Total Count 2230 2230 2230 2230 2230 2230 2230 2230

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

QIID-1. Figure 19. Urban 

Off-Premise Outreach Locations 

Urban HQ 

 

 High 

Schools 

Employer 

Sites 

Public 

Gatherings

Local and 

State 

Government 

Sites 

Communitybased 

Organizations

Vocational 

Schools 

Military 

Installations Other 

No Count 593 1271 1083 1764 771 1550 1968 1437

 % 29.4% 63.0% 53.6% 87.4% 38.2% 76.8% 97.5% 71.2%

Yes Count 1425 748 936 255 1247 469 51 582

 % 70.6% 37.0% 46.4% 12.6% 61.8% 23.2% 2.5% 28.8%

Total Count 2019 2019 2019 2019 2019 2019 2019 2019

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 71 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II E. Does the bank work with corporate or business customers to 

provide services for their unbanked employees? 

 Yes No 

Less than half of banks (38.2 percent) work with corporate or business customers to provide 

services for their unbanked employees. Proportionately, larger banks are more likely to work with 

corporate or business customers when compared with smaller banks. 

QIIE. Figure 1. Does your bank work with corporate or business customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 376 4501 61.8

 Yes 295 2778 38.2

 Total 671 7279 100.0

Missing System 14 161

Total 685 7440

There are differences among regions for banks that work with corporate or business customers. A 

greater percentage of banks in the East South Central (49.9 percent) and West South Central (49.5 

percent) regions work with business customers than banks in the Mid-Atlantic (23.7 percent). 

QIIE. Figure 2. Region 

Does your bank work with corporate or business customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East North 

Central 

West 

North 

Central Mountain Pacific 

No Count 281 440 445 321 595 773 974 369 302

 % 63.6% 76.3% 52.6% 50.1% 50.5% 60.6% 71.2% 72.8% 67.9%

Yes Count 161 137 401 320 582 502 394 138 143

 % 36.4% 23.7% 47.4% 49.9% 49.5% 39.4% 28.8% 27.2% 32.1%

Total Count 442 577 846 642 1177 1274 1369 507 444

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference between tiers for banks that work with corporate or business customers. A 

higher percentage of banks in Tier 1 (87.5 percent) partners with businesses than in both Tier 2 

(62.2 percent) and Tier 3 (36.0 percent). 

QIIE. Figure 3. Tier 

Does your bank work with corporate or business 

customers? Tier 1 Tier 2 Tier 3 

No Count 3 205 4293

 % 12.5% 37.8% 64.0%

Yes Count 22 336 2420

 % 87.5% 62.2% 36.0%

Total Count 25 541 6713

 % 100.0% 100.0% 100.0%
 72 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a difference between urban and rural banks for banks that work with corporate or business 

customers. A greater percentage of urban banks (42.5 percent) work with corporate customers 

compared with rural banks (34.3 percent). 

QIIE. Figure 4. Urban/Rural 

Does your bank work with 

corporate or business 

customers? Rural HQ Urban HQ 

No Count 2530 1971

 % 65.7% 57.5%

Yes Count 1320 1458

 % 34.3% 42.5%

Total Count 3850 3429

 % 100.0% 100.0%

Question II E-1. If yes, does the bank offer payroll cards? Yes No 

Among all banks that work with business customers, 14.1 percent offer payroll cards. 

QIIE-1. Figure 1. Does your bank offer payroll cards? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 226 2330 85.9

 Yes 62 383 14.1

 Total 288 2713 100.0

Missing System 7 65

Total 295 2778

There are no differences among regions for banks that offer payroll cards. 

There is a difference between tiers for banks that offer payroll cards. Almost three-quarters of Tier 1 

banks that work with business customers (71.4 percent) offer payroll cards, compared with 28.7 

percent in Tier 2 and 11.6 percent in Tier 3. 

QIIE-1. Figure 2. Tier 

Does your bank offer payroll cards? 1 2 3 

No Count 6 232 2092

 % 28.6% 71.3% 88.4%

Yes Count 16 94 273

 % 71.4% 28.7% 11.6%

Total Count 22 326 2365

 % 100.0% 100.0% 100.0%
 73 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a difference between urban and rural banks for banks that work with business customers 

and offer payroll cards. A greater percentage of urban banks that work with business customers 

(17.0 percent) offer payroll cards, compared with 11.0 percent of rural banks. 

QIIE-1. Figure 3. Urban/Rural 

Does your bank offer payroll 

cards? 

 Rural HQ Urban HQ 

No Count 1163 1168

 % 89.0% 83.0%

Yes Count 144 239

 % 11.0% 17.0%

Total Count 1307 1407

 % 100.0% 100.0%

Question II E-1. a) If yes, how many payroll cards has the bank issued 

during the year 2007? 

Of the banks that specify how many payroll cards they had issued in 2007, the mean is 809 cards, 

and the median is 4 cards. This uneven distribution of cards is likely due to the largest banks in Tier 

1 offering an average of 16,000 cards, which skews the overall average. 

QIIE-1a. Figure 1. Weighted: How many payroll cards has your bank issued during 2007? 

N Valid 287 

Missing 96 

Mean 809.28 

Median 4.00 

Mode 0 

Minimum 0 

Maximum 130,000 

There is no difference between tiers for the number of payroll cards that banks issued in 2007. 

There are no differences among regions for the number of payroll cards that banks issued during 

2007. 

There is no difference between urban and rural banks for the number of payroll cards that banks 

issued in 2007. 
 74 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II E-1. b) Describe the features and fees associated with this card 

(if any). 

Among the 62 banks that report offering payroll cards, there is little consistency or similarity in the 

types and levels of associated fees. Some programs charge end-user fees for ATM and point-of-sale 

(POS) transactions, while others charge corporate fees for payroll card disbursements. Some banks 

do not charge any fees in an effort to encourage non-customers to become bank customers. 

Forty-nine banks currently have active payroll card programs. Of the remaining banks, seven are in 

development, one was previously discontinued, and five did not elaborate further. 

 Nine banks offer payroll cards through a third-party processor. 

 Twenty payroll card programs also have debit card capabilities. More programs may offer this 

capability, but it is only explicitly stated in these 20 banks responses. 

No programs share identical features and characteristics. Each bank has a unique fee structure and 

charges different types of fees at differing amounts. 

 Seven banks’ payroll cards do not charge fees for activation and use. 

 Eleven banks charge card replacement fees between $5.00 and $15.00 with the most common 

being $10.00 (seven banks). 

 Thirteen banks charge monthly fees, ranging from $1.00 to $9.99. None specify whether the 

employer or the employee is responsible for these fees. 

 Twenty banks explain what types of ATM fees are associated with the card, five of which offer 

free unlimited usage of proprietary ATMs. Four banks offer free proprietary ATM withdrawals 

up to a certain monthly threshold before charging a fee of $1.00 to $2.00 per use. Eleven banks 

charge a set fee for every domestic ATM withdrawal, proprietary or not, ranging between $0.95 

and $2.00. 

 Seven banks charge fees for international ATM withdrawals, with a mean of $3.00. 

 Seven banks charge NSF or insufficient funds fees on payroll cards, varying between $9.95 and 

$35.00. In contrast, there is one instance where the card cannot be overdrawn since purchases 

are only approved up to the available balance. 
 75 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II F. Does the bank use targeted marketing (e.g., meetings with 

large employers, mailings, etc.) to reach unbanked and/or underbanked 

individuals? Yes No 

About a quarter (25.2 percent) of banks use targeted marketing to reach the unbanked and 

underbanked. 

QIIF. Figure 1. Does your bank use targeted marketing to reach un/underbanked individuals? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 456 5358 74.8

 Yes 208 1805 25.2

 Total 664 7163 100.0

Missing System 21 277

Total 685 7440

There is a difference between regions for banks that use targeted marketing to reach 

un/underbanked individuals. A greater percentage of banks in the East North Central region (33.0 

percent) use targeted marketing than banks in the Mountain region (15.5 percent). 

QIIF. Figure 2. Region 

Does your bank use targeted marketing to reach un/under banked individuals? 

 New 

England 

Mid 

Atlantic 

South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 322 409 630 508 793 843 1087 429 336

 % 72.3% 70.5% 77.0% 77.5% 69.8% 67.0% 82.7% 84.5% 75.0%

Yes Count 123 171 188 147 343 415 227 79 112

 % 27.7% 29.5% 23.0% 22.5% 30.2% 33.0% 17.3% 15.5% 25.0%

Total Count 446 581 819 655 1136 1257 1314 507 448

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference between tiers for banks that use targeted marketing to reach un/underbanked 

individuals. A higher percentage of banks in Tiers 1 (66.7 percent) and 2 (51.9 percent) use targeted 

marketing than banks in Tier 3 (22.8 percent). 

QIIF. Figure 3. Tier 

Does your bank use targeted marketing to 

reach un/underbanked individuals? Tier 1 Tier 2 Tier 3 

No Count 8 264 5086

 % 33.3% 48.1% 77.2%

Yes Count 17 284 1504

 % 66.7% 51.9% 22.8%

Total Count 25 548 6590

 % 100.0% 100.0% 100.0%
 76 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a difference between urban and rural banks for banks that use targeted marketing to reach 

the un/underbanked. Less than a third (30.8 percent) of urban banks use targeted marketing 

compared with only one-fifth (20.1 percent) of rural banks. 

QIIF. Figure 4. Urban/Rural 

Does your bank use targeted 

marketing to reach 

un/underbanked individuals? Rural HQ Urban HQ 

No Count 2998 2360

 % 79.9% 69.2%

Yes Count 756 1049

 % 20.1% 30.8%

Total Count 3754 3409

 % 100.0% 100.0%

Question II F-1. If yes, are there particular segments of the unbanked 

and/or underbanked population your bank is targeting? Yes No 

Among banks that use targeted marketing, 55.3 percent target a specific segment of the population. 

QIIF-1. Figure 1. Are there particular segments that you target? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 80 795 44.7

 Yes 126 982 55.3

 Total 206 1778 100.0

Missing System 2 27

Total 208 1805

There are few differences among regions for banks that target particular segments. 

There is a difference between tiers for banks that target particular segments. Nearly all (93.8 percent) 

of Tier 1 banks target a specific segment, compared with 65.9 percent of Tier 2 and 52.8 percent of 

Tier 3. 

QIIF-1. Figure 2. Tier 

Are there particular segments that you 

target? 1 2 3 

No Count 1 97 697

 % 6.3% 34.1% 47.2%

Yes Count 16 187 779

 % 93.8% 65.9% 52.8%

Total Count 17 284 1477

 % 100.0% 100.0% 100.0%
 77 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a slight difference between urban and rural banks for banks that target specific segments. 

More that half of urban banks (56.2 percent) target specific segments, as do 53.9 percent of rural 

banks. 

QIIF-1. Figure 3. Urban/Rural 

Are there particular 

segments that you target? Rural HQ Urban HQ 

No Count 342 453

 % 46.1% 43.8%

Yes Count 401 582

 % 53.9% 56.2%

Total Count 743 1035

 % 100.0% 100.0%

Question II F-2. If yes, which segments? Mark all that apply. 

Working poor Consumers on public 

 assistance 

 Post disaster assistance 

 Urban residents Rural residents Immigrants 

 African Americans Hispanic Americans Asian Americans 

 Other 

Among banks that target a specific segment, banks target the Hispanic-American segment most 

frequently (45.3 percent). 

QIIF-2. Figure 1. Percent of Banks Targeting Specific Population Segments 

Segment Percentage of Banks 

Hispanic Americans 45.3% 

Working Poor 34.5% 

Rural Residents 29.6% 

African Americans 23.5% 

Other 22.8% 

Urban Residents 22.3% 

Immigrants 17.7% 

Consumers on Public Assistance 15.5% 

Asian Americans 10.6% 

Post-disaster Assistance 6.2% 
 78 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIF-2. Figure 2. Working Poor 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 99 859 65.5

 Yes 64 453 34.5

 Total 163 1312 100.0

Missing System 45 493 

Total 208 1805 

QIIF-2. Figure 3. Consumers on Public Assistance 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 134 1109 84.5

 Yes 29 203 15.5

 Total 163 1312 100.0

Missing System 45 493 

Total 208 1805 

QIIF-2. Figure 4. Post-disaster Assistance 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 147 1228 93.8

 Yes 15 81 6.2

 Total 162 1309 100.0

Missing System 46 496 

Total 208 1805 

QIIF-2. Figure 5. Urban Residents 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 113 1020 77.7

 Yes 50 292 22.3

 Total 163 1312 100.0

Missing System 45 493 

Total 208 1805 

QIIF-2. Figure 6. Rural Residents 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 119 924 70.4

 Yes 44 388 29.6

 Total 163 1312 100.0

Missing System 45 493 

Total 208 1805 

QIIF-2. Figure 7. Immigrants 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 125 1080 82.3

 Yes 38 232 17.7

 Total 163 1312 100.0

Missing System 45 493

Total 208 1805

QIIF-2. Figure 8. African Americans 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 110 1004 76.5

 Yes 53 308 23.5

 Total 163 1312 100.0

Missing System 45 493

Total 208 1805

QIIF-2. Figure 9. Hispanic Americans 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 76 718 54.7

 Yes 87 594 45.3

 Total 163 1312 100.0

Missing System 45 493

Total 208 1805

QIIF-2. Figure 10. Asian Americans 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 135 1173 89.4

 Yes 28 139 10.6

 Total 163 1312 100.0

Missing System 45 493

Total 208 1805

QIIF-2. Figure 11. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 126 1013 77.2

 Yes 37 299 22.8

 Total 163 1312 100.0

Missing System 45 493

Total 208 1805
 79 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Thirty-seven banks mention targeted segments other than those listed in Question II F-2. The 

leading segments are individuals living in low and moderate-income (LMI) areas within the bank’s 

area (8), students (8), and local businesses (7). 

There is no difference between regions for targeted segments, except for rural residents. A higher 

proportion of banks in the West South Central region (75.4 percent) target rural residents than 

banks in the West North Central region (13.3 percent). 

QIIF-2. Figure 12. Region 

Rural Residents 

 New 

England 

Mid 

Atlantic 

South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 65 67 82 31 38 180 96 21 42 

 % 82.6% 59.7% 61.4% 44.9% 24.6% 84.5% 86.7% 43.0% 67.2% 

Yes Count 14 46 51 38 117 33 15 27 21 

 % 17.4% 40.3% 38.6% 55.1% 75.4% 15.5% 13.3% 57.0% 32.8% 

Total Count 79 113 133 69 154 213 111 48 63 

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 

There are differences between tiers for targeted segments including post-disaster assistance, urban 

residents, immigrants, African Americans, Hispanic Americans, and Asian Americans. A greater 

percentage of banks in Tier 1 target these segments than banks in either Tier 2 or Tier 3. 

QIIF-2. Figure 13. Tier 1 

Tier 1 

 Post-disaster 

Assistance 

Urban 

Residents Immigrants 

African 

Americans 

Hispanic 

Americans 

Asian 

Americans

No Count 10 5 6 3 1 7

 % 66.7% 33.3% 40.0% 20.0% 6.7% 46.7%

Yes Count 5 10 9 13 15 8

 % 33.3% 66.7% 60.0% 80.0% 93.3% 53.3%

Total Count 16 16 16 16 16 16

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

QIIF-2. Figure 14. Tier 2 

Tier 2 

 Post-disaster 

assistance 

Urban 

residents Immigrants 

African 

Americans 

Hispanic 

Americans 

Asian 

Americans

No Count 163 97 128 97 45 139

 % 88.7% 51.9% 68.5% 51.9% 24.1% 74.1%

Yes Count 21 90 59 90 142 49

 % 11.3% 48.1% 31.5% 48.1% 75.9% 25.9%

Total Count 184 187 187 187 187 187

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 80 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIF-2. Figure 15. Tier 3 

Tier 3 

 Post-disaster 

Assistance 

Urban 

Residents Immigrants 

African 

Americans 

Hispanic 

Americans 

Asian 

Americans

No Count 752 615 656 602 396 725

 % 93.2% 76.3% 81.4% 74.6% 49.2% 89.8%

Yes Count 55 191 150 205 410 82

 % 6.8% 23.7% 18.6% 25.4% 50.8% 10.2%

Total Count 807 807 807 807 807 807

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There are differences between urban and rural banks for the specific segments banks target, 

specifically consumers on public assistance, urban residents, immigrants, African Americans, 

Hispanic Americans, and Asian Americans. Urban residents are different between tiers, while rural 

residents are not. This may be explained by the fact that urban-headquartered banks may serve rural 

market areas, while rural banks are less likely to operate in urban markets. 

QIIF-2. Figure 16. Rural 

Rural HQ 

 Working 

Poor 

Consumers 

on Public 

Assistance 

Postdisaster 

Assistance

Urban 

Residents

Rural 

Residents Immigrants

African 

Americans

Hispanic 

Americans 

Asian 

Americans “Other”

No Count 329 455 462 462 319 455 431 291 486 360

 % 64.0% 88.7% 90.6% 90.0% 62.0% 88.7% 84.0% 56.7% 94.7% 70.0%

Yes Count 185 58 48 51 195 58 82 223 27 154

 % 36.0% 11.3% 9.4% 10.0% 38.0% 11.3% 16.0% 43.3% 5.3% 30.0%

Total Count 514 514 510 514 514 514 514 514 514 514

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

QIIF-2. Figure 17. Urban 

Urban HQ 

 

Working 

Poor 

Consumers 

on Public 

Assistance 

Postdisaster 

Assistance

Urban 

Residents

Rural 

Residents Immigrants

African 

Americans

Hispanic 

Americans 

Asian 

Americans “Other”

 Count 531 654 766 558 606 624 573 427 687 653

No % 66.5% 81.8% 95.9% 69.9% 75.9% 78.2% 71.8% 53.5% 86.0% 81.8%

 Count 268 145 33 241 193 174 226 372 112 145

Yes % 33.5% 18.2% 4.1% 30.1% 24.1% 21.8% 28.2% 46.5% 14.0% 18.2%

 Count 799 799 799 799 799 799 799 799 799 799

Total % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 81 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II G. Does the bank have any other outreach and education 

programs to encourage unbanked or underbanked consumers to open an 

account? 

 Yes No 

Other than the types of outreach and education programs specified in the survey, 16.8 percent of 

banks offer some other type of outreach or education program to help encourage unbanked or 

underbanked customers to open an account. 

QIIG. Figure 1. Does your bank have any other outreach or education programs to encourage unbanked or 

underbanked consumers to open an account? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 521 6007 83.2

 Yes 145 1214 16.8

 Total 666 7221 100.0

Missing System 19 219

Total 685 7440

There are no differences among regions for other outreach and education programs. 

There is a difference between tiers for other outreach and education. Over half (58.3 percent) of 

Tier 1 banks do other outreach, compared with 37.4 percent of Tier 2 and 15.0 percent of Tier 3. 

QIIG. Figure 2. Tier 

Does your bank have any other outreach or 

education? 

 Tier 1 Tier 2 Tier 3 

No Count 10 336 5660

 % 41.7% 62.6% 85.0%

Yes Count 15 201 998

 % 58.3% 37.4% 15.0%

Total Count 25 538 6658

 % 100.0% 100.0% 100.0%

There is a difference between urban and rural banks for banks that offer other outreach or 

education. About one-fifth (19.4 percent) of urban banks offer other outreach, while 14.5 percent of 

rural banks offer other outreach. 

QIIG. Figure 3. Urban/Rural 

Does your bank have any 

other outreach or education? Rural HQ Urban HQ 

No Count 3279 2728

 % 85.5% 80.6%

Yes Count 557 656

 % 14.5% 19.4%

Total Count 3836 3385

 % 100.0% 100.0%
 82 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II G-1. If yes, please describe. 

Outreach efforts conducted by responding banks commonly utilize banking industry programs, 

partner with third-party organizations, and offer a variety of school-based educational programs. 

Banks’ efforts to educate children through schools help banks to build foundational relationships 

that will increase a child’s likelihood of becoming customers in the future and to provide indirect 

exposure to their unbanked parents. 

 Local (4), state (8), and proprietary (15) outreach education efforts are described in 27 of 150 

total open-ended responses. 

 National banking programs are mentioned in 48 instances among the total 150 responses. 

Among national programs, the FDIC’s Money Smart program appears most frequently, 

accounting for 12 out of the 150 responses. ABA programs, such as Teach Children to Save 

Day, are mentioned on ten occasions, while participating in IRS VITA programs is the third 

most frequently cited (9) among national programs. 

 Over a quarter (43/150) of responding banks offer some form of K-12 or local college financial 

education sessions that are not specifically linked to a national program. Financial literacy and 

basic banking skills are typically the focus of these visits. 

 Less than a quarter (32/150) of responding banks encourage specific types of checking, savings, 

IDA, and direct deposit accounts. Of these responses, nine banks offer IDAs. 

 Over a quarter (44/150) of respondents either partner with third-party organizations or offer 

public workshops and seminars in the community. Seminars offered by these banks cover topics 

including identity theft, budgeting, home ownership, and immigrant education. 
 83 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Effectiveness of Education and Outreach 

Programs 

Question II H. What are the three most effective types of financial 

education, outreach, and marketing programs that your bank has used to 

help establish account relationships with unbanked and/or underbanked 

individuals? Please rank 1 to 3, where 1 = most effective, 2 = second most 

effective, and 3 = third most effective. 

Ranking Programs Advantages/Disadvantages 

Financial Education Materials 

Providing Financial Education 

Sessions 

Outreach Visits 

Participation in Other 

Organizations 

Targeted Marketing 

Other: _____ 

Rankings were calculated with a reverse scoring system, where each ranking of 1 received five 

points, a rank of 2 received four points, etc. Overall rankings were then calculated according to the 

sum of points for each type of program using this approach. 

Overall, banks rank financial education sessions as the most effective type of financial education and 

outreach program that they have used in establishing an account relationship with un/underbanked 

individuals, followed by participation in other organizations, and outreach visits. 

QIIH Figure 1. Most Effective Types of Financial Education and Outreach Programs 

(Calculated Ranking) 

Ranking Programs 

1 Providing Financial Education Sessions 

2 Participation in Other Organizations 

3 Outreach Visits 

4 Financial Education Materials 

5 Targeted Marketing 

6 Other 
 84 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Almost all (99.3 percent) of the banks rank financial education sessions as one of the top three most 

effective programs that they have used. 

QIIH Figure 2. Financial Education Sessions 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 124 1067 35.6

 2 124 1184 39.5

 3 77 729 24.3

 4 2 7 .2

 5 1 14 .5

 Total 328 3000 100.0

Missing System 357 4440

Total 685 7440

The following charts show the rankings of effectiveness for each type of program by how banks 

responded to whether they perceived un/underbanked individuals in their service areas. 

QIIH Figure 3. Advantages of Financial Education Sessions (non-weighted) 

88 Banks Listed an Advantage(s)

 

Advantage Mentions 

% of 

Mentions 

% of Banks 

(Advantages) 

Direct, personalized contact reaching the targeted audience 54 55.7% 61.4% 

Partnering with 3rd party to provide valuable, tailored education 32 33.0% 36.4% 

Other 11 11.3% 12.5% 

QIIH Figure 4. Disadvantages of Financial Education Sessions (non-weighted) 

53 Banks Listed a Disadvantage(s)

 

Disadvantage Mentions 

% of 

Mentions 

% of Banks 

(Disadvantages)

Lack of participation 23 39.7% 43.4% 

Cost and time constraints 18 31.0% 34.0% 

Effectiveness issues 10 17.2% 18.9% 

Other 7 12.1% 13.2% 

Among the 88 banks that list advantages, 54 identify direct, personalized contact as a reason for 

their financial education programs’ effectiveness. Partnering with a third-party or providing valuable, 

tailored information is the second most frequently mentioned advantage (32/88). 

Lack of participation and attendance is the most frequently cited disadvantage (23/53). Only one of 

the banks that listed this disadvantage also listed partnering with a third-party as an advantage. 

Almost all (97.5 percent) of the banks rank participation in other organizations as one of the top 

three most effective programs that they have used. Participation in other organizations is the second 

most frequently ranked program and received the second most first place rankings. 
 85 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIH Figure 5. Participation in Programs with Other Organizations 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 121 1135 39.9

 2 92 833 29.3

 3 79 802 28.2

 4 5 58 2.0

 5 1 14 .5

 Total 298 2842 100.0

Missing System 387 4598

Total 685 7440

QIIH Figure 6. Advantages of Participation with Other Organizations (non-weighted) 

95 Banks Listed an Advantage(s) 

Advantage Mentions % of 

Mentions 

% of Banks 

(Advantages) 

Partnering with trusted third parties provides access to large, 

target markets. 42 42.9% 44.2% 

Build relationships with other organizations and new customers 19 19.4% 20.0% 

Other 17 17.3% 17.9% 

Able to personalize approach and have direct contact 11 11.2% 11.6% 

Helps in understanding the needs of the population 9 9.2% 9.5% 

QIIH Figure 7. Disadvantages of Participation with Other Organizations (non-weighted) 

27 Banks Listed a Disadvantage(s) 

Disadvantage Mentions % of 

Mentions 

% of Banks 

(Disadvantages)

High level of time, cost and staff effort involved 9 29.0% 33.3% 

Low participation or effectiveness 9 29.0% 33.3% 

Unable to highlight our specific bank services, and lost control 

over messages sent out 6 19.4% 22.2% 

Unfocused form of passive education 4 12.9% 14.8% 

Other 3 9.7% 11.1% 

Banks identify the most advantages for partnering with other organizations (95) among all programs. 

Forty-two of the 95 responses are based on partnering with trusted third parties to provide access to 

target markets. 

The most commonly cited disadvantages are very similar to those listed under providing financial 

education sessions and outreach visits. These include cost and time constraints, lack of participation, 

and effectiveness issues. 

Almost all (97.6 percent) banks rank outreach visits as one of the top three most effective programs 

that they have used. Outreach visits receive the second fewest total rankings, but among those who 

rank it, 40.9 percent rank it first in effectiveness. 
 86 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIH Figure 8. Outreach Visits 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 107 1119 40.9

 2 74 747 27.3

 3 85 806 29.4

 4 3 31 1.1

 5 4 34 1.3

 Total 273 2737 100.0

Missing System 412 4703

Total 685 7440

QIIH Figure 9. Advantages of Outreach Visits (non-weighted) 

73 Banks Listed an Advantage(s) 

Advantage Mentions % of 

Mentions 

% of Banks 

(Advantages) 

Direct, personalized contact reaching the targeted audience 43 55.1% 58.9% 

Partnering with third party to provide valuable, tailored 

information in a comfortable environment 23 29.5% 31.5% 

Other 12 15.4% 16.4% 

QIIH Figure 10. Disadvantages of Outreach Visits (non-weighted) 

25 Banks Listed a Disadvantage(s) 

Disadvantage Mentions % of 

Mentions 

% of Banks 

(Disadvantages)

Cost and time constraints 8 32.0% 32.0% 

Lack of Participation 7 28.0% 28.0% 

Effectiveness issues 6 24.0% 24.0% 

Other 4 16.0% 16.0% 

Banks do not discern many differences in the advantages and disadvantages between providing 

financial education sessions and outreach visits. Comments on these two programs are very similar 

and may be due to the high likelihood that educational elements are included in outreach visits. 

Two advantages are mentioned by 66 of the 73 banks: 

 Direct, personalized contact with the target audience 

 Partnering with third parties or providing valuable, tailored information in a comfortable 

environment 

Cost and time restraints (8) are the most frequently mentioned disadvantages followed closely by 

lack of participation and attendance (7).

Almost all (97.2 percent) banks that rank financial education materials rank it as one of the top three 

most effective programs that they have used. 
 87 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIH Figure 11. Financial Education Materials 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 78 919 32.1

 2 87 884 30.9

 3 107 982 34.3

 4 6 62 2.2

 5 2 17 .6

 Total 280 2863 100.0

Missing System 405 4577

Total 685 7440

There are differences among regions for banks’ rankings of financial education materials. Banks in 

the West North Central region (51 percent rank it as number one) rank financial education materials 

as more effective than banks in the New England region (2 percent rank it as number one). 

QIIH Figure 12. Region 

Financial Education Materials 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

1 Count 3 33 92 82 144 103 332 99 31

 % 1.9% 16.0% 39.2% 25.1% 31.6% 21.6% 51.0% 39.5% 35.4%

2 Count 41 92 66 107 144 134 198 87 14

 % 23.1% 45.0% 28.0% 32.8% 31.6% 28.4% 30.5% 34.5% 16.0%

3 Count 133 80 64 138 147 206 120 65 29

 % 75.0% 39.0% 27.0% 42.2% 32.3% 43.5% 18.4% 26.0% 32.9%

4 Count 0 0 14 0 17 31 0 0 0

 % .0% .0% 5.8% .0% 3.8% 6.5% .0% .0% .0%

5 Count 0 0 0 0 3 0 0 0 14

 % .0% .0% .0% .0% .8% .0% .0% .0% 15.7%

Total Count 178 205 236 327 455 474 650 251 87

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

There is a difference between tiers for banks’ rankings of the effectiveness of financial education 

materials. Banks in Tier 2 (2.41 mean ranking) rank financial education materials lower than banks in 

Tier 3 (2.05 mean ranking). 
 88 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIH Figure 13. Tier 

Financial Education Materials 1 2 3 

1 Count 2 42 875

 % 13.3% 15.8% 33.9%

2 Count 4 87 793

 % 26.7% 32.9% 30.7%

3 Count 9 125 848

 % 60.0% 47.4% 32.8%

4 Count 0 7 55

 % .0% 2.6% 2.1%

5 Count 0 3 14

 % .0% 1.3% .5%

Total Count 16 264 2584

 % 100.0% 100.0% 100.0%

There is little difference between urban and rural banks with regard to banks’ rankings of the 

effectiveness of financial education materials. 

QIIH Figure 14. Advantages of Materials (non-weighted) 

53 Banks Listed an Advantage(s) 

Advantage Mentions % of 

Mentions 

% of Banks 

(Advantages) 

Provides basic info, good learning tool 19 35.8% 35.8% 

Ease of use, readily available 10 18.9% 18.9% 

Reference or reinforcement tool 9 17.0% 17.0% 

Broad outreach, cost effectiveness 6 11.3% 11.3% 

Use of FDIC Tools 5 9.4% 9.4% 

Other 4 7.5% 7.5% 

QIIH Figure 15. Disadvantages of Materials (non-weighted) 

23 Banks Listed a Disadvantage(s)

Disadvantage Mentions % of 

Mentions 

% of Banks 

(Disadvantages) 

Not personalized, no direct contact 6 26.1% 26.1% 

High cost 5 21.7% 21.7% 

Lack of interest, physical pick up 5 21.7% 21.7% 

Low Effectiveness 4 17.4% 17.4% 

Other 3 13.0% 13.0% 

Twenty-nine of 53 comments about the advantages of financial education materials mention either 

the ability of these materials to provide information or their ease-of-use. 
 89 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

The disadvantages are evenly distributed across four main categories: 

 Not personalized and no direct contact 

 High costs associated 

 Lack of interest by customers/materials must physically be picked up 

 Questionable effectiveness of materials 

Almost all (93.9 percent) banks rank targeted marketing as one of the top three most effective 

programs. Targeted marketing was roughly half as likely to be ranked in the top five (1457/7440 

from table QIIH figure 18) compared with outreach visits (2737/7440 from QIIH figure 

10). Targeted marketing has the fewest first, second, and third place effectiveness rankings of any 

program. 

QIIH Figure 16. Targeted Marketing 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 50 538 37.0

 2 38 417 28.7

 3 43 412 28.3

 4 1 14 .9

 5 7 75 5.2

 Total 139 1457 100.0

Missing System 546 5983

Total 685 7440

QIIH Figure 17. Advantages of Target Marketing (non-weighted) 

23 Banks Listed an Advantage(s) 

Advantage Mentions % of Mentions % of Banks 

(Advantages) 

Ability to deliver a direct and specific message 12 48.0% 52.2% 

Capture large audience within target areas 6 24.0% 26.1% 

Other 5 20.0% 21.7% 

Cost effectiveness 2 8.0% 8.7% 

QIIH Figure 18. Disadvantages of Target Marketing (non-weighted) 

23 Banks Listed a Disadvantage(s) 

Disadvantages without rankings 

Disadvantage Mentions % of Mentions % of Banks 

(Disadvantages)

Low success / effectiveness rate 10 40.0% 43.5% 

No personal contact to educate customer thoroughly 7 28.0% 30.4% 

Too costly 6 24.0% 26.1% 

Other 2 8.0% 8.7% 
 90 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

This program is the only instance in which the number of disadvantages (23) equals the number of 

advantages (23). 

The most commonly cited advantage of targeted marketing is the ability to deliver a direct and 

specific message to a particular segment, which is mentioned in 12 of the 23 listed advantages. 

Among the 8 percent of banks that rank another program, 100 percent rank it as one of the top 

three most effective programs. 

QIIH Figure 19. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 29 323 55.6

 2 8 76 13.2

 3 17 181 31.3

 Total 54 580 100.0

Missing System 631 6859

Total 685 7440

QIIH Figure 20. Other Rankings (non-weighted) 

54 Banks Ranked Other 

Others, Specify Codes Mentions % of 

Mentions 

Product/Program offerings 11 23.40% 

Working within the community 11 23.40% 

Advertising 8 17.02% 

Direct Contact 7 14.89% 

Referrals 5 10.64% 

Website/Internet 4 8.51% 

Have not evaluated yet 1 2.13% 

Twenty-nine of the 54 banks indicating “other” programs rank this category first. The “other” 

category consists of seven different groups of responses: 

 Product/program offerings (11) 

 Working within the community (11) 

 Advertising (8) 

 Direct contact (7) 

 Referrals (5) 

 Website (4) 

 Have not evaluated (1) 

Across these responses, the advantages and disadvantages do not refer to the same types of 

programs, so no conclusions can be drawn for this category. 
 91 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II I. Has your bank identified expanding services to unbanked and 

underbanked individuals in your market area as a priority in your bank’s 

business strategy? Yes No Don’t know 

While 17.5 percent of banks identify expanding services as a priority in the bank’s business strategy, 

70.4 percent have not. About half (45.8 percent) of Tier 1 banks have identified it as a priority. 

QII I Figure 1. Have you identified expanding services in your market as a priority in your bank's business 

strategy? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 448 5098 70.4

 Yes 131 1264 17.5

 Don't Know 88 882 12.2

 Total 667 7245 100.0

Missing System 18 195

Total 685 7440

There are differences among regions for banks that are expanding services as a strategy. A larger 

percentage of New England (23.0 percent) banks have identified it as a strategy compared with West 

North Central banks (9.5 percent). However, more West South Central banks (22.0 percent) “don’t 

know” compared with Mountain banks (3.4 percent). 

QII I Figure 2. Region 

Have you identified expanding services in your market as a priority in your bank's business strategy?

 

New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 312 412 600 521 657 829 1036 405 328

 % 70.1% 70.9% 69.8% 78.2% 58.7% 65.4% 77.4% 79.8% 71.0%

Yes Count 103 128 165 111 216 233 128 86 96

 % 23.0% 22.0% 19.2% 16.6% 19.3% 18.4% 9.5% 16.9% 20.8%

Don't 

Know 

Count 31 41 95 34 246 205 174 17 38

 % 6.9% 7.1% 11.0% 5.1% 22.0% 16.2% 13.0% 3.4% 8.2%

Total Count 446 581 860 666 1119 1268 1338 507 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 92 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for banks that are expanding services as a strategy. A higher 

percentage of Tier 2 banks (24.7 percent) than Tier 3 banks (16.8 percent) identify this as a business 

strategy, and a higher percentage of Tier 2 banks (18.8 percent) indicate “Don’t Know” than Tier 3 

banks (11.7 percent). 

QII I Figure 3. Tier 

Have you identified expanding services in your 

market as a priority in your bank's business 

strategy? Tier 1 Tier 2 Tier 3 

No Count 11 302 4785

 % 45.8% 56.5% 71.6%

Yes Count 11 132 1121

 % 45.8% 24.7% 16.8%

Don't Know Count 2 101 779

 % 8.3% 18.8% 11.7%

Total Count 25 534 6686

 % 100.0% 100.0% 100.0%

There is no difference between urban and rural banks for banks that are expanding services as a 

strategy. 

Question II J. Has your bank conducted research on unbanked or 

underbanked consumers in your CRA assessment area? 

 Yes No Don’t know 

Over three-quarters (76.5 percent) of banks have not conducted research on the potential unbanked 

customers in their CRA assessment areas. 

QIIJ Figure 1. Has your bank conducted research on the un/underbanked in your CRA area? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 493 5603 76.5

 Yes 80 672 9.2

 Don't Know 102 1048 14.3

 Total 675 7323 100.0

Missing System 10 116

Total 685 7440

There are no differences among regions for banks that have conducted research. 

There is no difference between tiers for banks that have conducted research. 

There is no difference between urban and rural for banks that have conducted research. 
 93 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Question II J-1. If yes, please summarize this research. 

Though the majority of banks report that they perceive an un/underbanked population in their area, 

only 9.2 percent of all banks have conducted their own research on unbanked and underbanked 

consumers within their CRA assessment areas. Banks report that they rely on Census data and other 

third-party research on market demographics and needs. A common reason for not performing 

formal research is that banks perceive that the unbanked and underbanked population in their area is 

too small to warrant such an effort. 

Of the banks that have conducted research, approaches include: focus groups, surveys, community 

visits, and hiring of third-party organizations to complete the research on the bank’s behalf. 

Through these different forms of research, some common observations of the population include: 

 Many unbanked individuals do not use financial institutions because they do not have valid 

Individual Tax Payer Identification Numbers (ITIN) or Social Security Numbers (SSN). 

 There is a need for bilingual information that is written in a manner which the population can 

understand. 

 Branches need to be conveniently located near the populations’ LMI area in order to bring them 

into the banking mainstream. 

One bank’s research found the following data: 

“Our primary focus over the past two years has been on the Hispanic community. Research 

and data gathering have been conducted through the use of the most recent Census data. The 

population growth of the Hispanic community can be readily seen in the demographic data that 

may, in fact, be an under-representation of the community's true size. Additionally, two focus 

groups within the Hispanic community, one with community leaders and the other with 

community members were conducted to assess the needs from the community's perspective. 

Nationally, Census figures comparing population growth during the first six years of this decade 

provide a valuable snapshot. Hispanics are the largest minority group with an estimated national 

population of 44.3 million people. During this six-year time frame, Hispanic populations grew 

in every state in the nation, usually outpacing the growth of all other groups. An examination of 

national population growth from 2005 to 2006 reveals that Hispanics accounted for almost half 

of the nation's growth during that period. The projected Hispanic population of the U.S. as of 

July 1, 2050, is 102.6 million. According to this projection, Hispanics will constitute 24 percent 

of the nation's total population by that date. One out of ten small businesses in the U.S. is 

Hispanic owned. The latest Census figures show that the rate of growth of Hispanic-owned 

businesses is triple the rate of the national average for all businesses. In [our state], the Hispanic 

population grew at 48 percent, easily outpacing all others. The PEW Institute estimates that the 

state's population will be 12 percent by 2015. The top three nationalities in the state are 

Mexicans (17.5 percent), Salvadoran (15 percent) and Puerto Rican (11 percent). There are in 

excess of 15,300 Hispanic-owned businesses in [our state], representing 3.5 percent of the total 

in the state. Nearly 7 percent of [our state’s] Hispanic population are business owners, reflecting 

a very entrepreneurial spirit. Demographic and Census tract data have been gathered to support 

recommendations from a geographic focus. Data have been gathered within a seven-mile radius 

of all bank retail and small consumer loans branches as of October 2007. In addition, we have 

partnered with a CRM Marketing firm, to conduct a Customer Ethnicity Analysis of our 

customer base in an effort to establish a baseline for measuring and tracking success of our 

efforts on a go-forward basis in serving the unbanked and underbanked populations.” 
 94 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Another example of a bank that conducted their own research found the following: 

“Demographic research and geo-coded maps of our assessment areas allow us to contact the 

nonprofits within those areas to develop working relationships. This research also allowed us to 

determine the primary language spoken within our assessment areas to determine where 

bilingual associates are needed the most and allows us to distribute Spanish and English 

brochures to the branches where they are needed. We also have conducted research that proved 

we should extend our business hours to 7:30 p.m. and extend our work week to either 6 or 7 

days depending on the location to better serve the individuals within our assessment areas. 

Research says educated immigrants, middle-income individuals with poor credit histories, and 

military personnel or others who lead a transitory lifestyle are among the underbanked living in 

households with less than $40,000 a year in income. The study also says the average unbanked 

person generally earns less than $25,000 annually, is likely to be someone new in the country, a 

young person, single, minority or an individual with low level education. Hispanics and AfricanAmericans account for a large percentage of the unbanked and overall, the group is slightly 

more female than male. They feel they do not have enough money to justify the fees they are 

charged. They have loans originated elsewhere and use credit cards or have life insurance. They 

are more likely to rent than to own a home, more likely to use prepaid cellular plans, and more 

likely to purchase used vehicles and choose a used car dealer based on financing options. They 

think banks are too expensive and are uncomfortable with social aspects of banking. They are 

concerned about maintaining minimum balances and the privacy of their financial information. 

There may be language barriers, and immigration issues. Many were raised in a cash-based 

culture and have little or no knowledge of how a financial institution works. Many generally do 

not have a deposit account and turn to check cashing establishments, retail stores, and other 

alternative financial services to transact business.” 

Another bank conducted a survey regarding Money Services Business (MSBs) operating in its 

assessment area. 

“At least 35 percent of MSB customers are existing banking customers: 1) The higher the 

poverty level, the higher the percentage of MSB within the area. 2) The higher the percentage of 

unbanked population translates into a higher percentage of MSBs within the assessment area. 

3) Contrary to popular belief, many MSBs offer very cheap check cashing services. Our survey 

found many in the rural areas with higher poverty rates offered check cashing for no fee. 4) 

MSBs have pointed out to the Bank the fact that cashing a $200 check is cheaper at many MSBs 

than cashing a check at Bank if the customer has no bank account. 5) Payday lenders point to 

the fact that giving a customer a $200 pay loan costs the consumer less than if the customer had 

two overdrafts totaling $200 (and in some banks it is cheaper than one $200 overdraft item. 6) 

In our rural areas the number one reason for declining a new depository customer is the lack of 

a tax payer identification number (regarding under various BSA laws).” 

A bank’s study on the underbanked found the following information: 

“There are approximately 40 million underbanked households, and these households have a 

diversity of financial services needs, attitudes, and behaviors. According to research conducted, 

70 percent of people in low and moderate income Census tracks have bank accounts, but twothirds of these households are heavy users of nonbank financial services (e.g., consumers obtain 

money orders, send remittances, and cash checks outside of traditional banks). Of the 30 

percent of households without bank accounts, at least half have had bank accounts in the past 

and 25 percent cash checks in banks.” 
 95 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Activities to Bring the Un/Underbanked into the 

Financial Mainstream 

Question II K. What are three activities that banks could do, in general, 

that would be most effective in bringing unbanked individuals and families 

into the conventional banking system? 

Survey respondents suggest a total of 1,336 comments about a range of activities that could be 

effective in bringing unbanked individuals into the mainstream banking system. The numbers 

presented for this question are not weighted since they come from qualitative responses. Banks’ 

open-end responses are distributed across eight major groupings: 

 Outreach Efforts 

 Products and Services 

 Educational Programs and Materials 

 Targeted Marketing 

 External Barriers and Challenges 

 Distribution Channels 

 Internal Activities and Initiatives 

 Non-Responses 

Four categories account for 1,182 of recommended activities. Of these, 27 percent are outreach 

efforts, 21 percent are products and services, 21 percent are educational programs and materials, and 

15 percent are for targeted marketing. The concentration of responses in these categories 

demonstrates a strong emphasis on raising awareness and building presence in communities with 

unbanked and underbanked populations. 

Outreach Efforts 

Respondents most often recommend that banks engage in outreach efforts to the unbanked and 

underbanked, which reflect many of the same strategies specified in the survey. Of the 357 

responses in this category, 74 suggest outreach efforts in general without designating a particular 

type of program or strategy, while 283 specifically suggest outreach in collaboration with a third 

party. 

Third parties represent places or resources frequented by unbanked and underbanked individuals. 

By leveraging these organizations’ rapport and trust within the community and developing outreach 

programs that reflect their understanding of the market’s needs, banks can more effectively inform 

and serve unbanked individuals. Collaboration with community organizations, such as nonprofit 

organizations, religious groups, and cultural associations, was most commonly cited, accounting for 

27 percent of responses in this category. Other suggestions for outreach with third parties include 

partnerships with local employers to develop workplace programs focused on unbanked and 

underbanked employees (22 percent), youth outreach through public schools (21 percent), and 

collaboration with government assistance agencies, including social services and housing authorities 

(10 percent). 
 96 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Products and Services 

Recommendations with regard to products and services offered to the unbanked and underbanked 

are the second most common observation, totaling 283. Within this category, 85 suggest providing 

affordable offerings to attract and accommodate this segment. More specifically, affordable offerings 

include free or low-cost products, no or low opening deposits, no or low minimum balances to 

maintain accounts, no or low service charges, and small dollar loans. By removing or lowering fees 

and minimums that may deter or prevent account opening, banks can create more opportunities to 

establish customer relationships with unbanked individuals. 

Responses suggesting that banks offer “targeted products” without noting a particular type or 

feature of a product accounted for 27 percent of activities in this category. Although this general 

response provides less insight than more specific suggestions, it demonstrates that some banks 

perceive developing and offering niche products as a way to serve the unbanked and underbanked. 

The remainder of responses in this category cover a range of products, services, and related 

activities. Providing services such as check cashing and wire transfers, which are typically offered by 

alternative providers, are suggested in 11 percent of responses. By directly competing against 

providers who conduct a significant portion, if not a majority, of financial transactions for the 

unbanked and underbanked and offering identical services at a lower cost, financial institutions 

could increase market share and improve their ability to transition customers to deposit accounts. 

Other suggested products and services include payroll or prepaid cards (10 percent), entry-level or 

“rebuilder” accounts with restrictions on access or activity (6 percent), promotion of direct deposit 

(4 percent), and individual development accounts (1.4 percent). Banks also suggest alternative 

strategies in relation to offerings. Modifying banks’ criteria for account opening, such as accepting 

lower credit scores, prospective customers with a ChexSystems history, and non-traditional forms of 

identification, account for 8 percent of responses, while 3.9 percent recommend offering incentives 

to entice account opening. 

Educational Programs and Materials 

Overall, activities involving educational components account for 21 percent of the comments. 

Education provided in sessions, workshops, courses, and training account for an overwhelming 91 

percent of these activities. Respondents convey the importance of personal finance education in 

providing unbanked individuals with the requisite knowledge and understanding to handle and 

benefit from banking products and services. This emphasis on education also highlights the need for 

educational services and its integral role in establishing banking relationships with unbanked and 

underbanked populations. 

Other responses (9 percent) in this category recommend providing education through materials, 

including brochures, literature, and websites, rather than interactive, in-person programs. Written 

educational materials allow banks to provide information more widely at a lower cost than 

conducting sessions, which may explain why a small portion of respondents prefer this approach. 
 97 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Targeted Marketing 

Marketing efforts are suggested in 15 percent of overall responses as an effective approach to 

bringing the unbanked and underbanked into the mainstream banking system. The vast majority (84 

percent) of recommended activities within this category relate to targeted marketing, such as 

advertisements in local newspapers, ethnic publications, participation in community events, direct 

mail to underserved households, and TV and radio commercials. Targeted marketing through 

various media enables banks to gain wider visibility and exposure to specific communities and allow 

institutions to tailor their efforts to the needs and characteristics of intended audiences. 

Additionally, 12 percent of these comments focus on conducting and using research on the 

unbanked and underbanked market, such as through focus groups and Census data, to identify and 

improve banks’ understanding of the underbanked population in their service areas. Market research 

not only facilitates more effective marketing but also informs the development of programs and 

offerings that serve specific needs of the unbanked community. The remaining 5 percent of 

responses cite word-of-mouth advertising, particularly customer referrals, as a valuable strategy for 

attracting customers from unbanked populations. 

Reduce External Barriers and Challenges 

Banks report that in their efforts to serve the unbanked and underbanked they often face barriers 

and challenges that inhibit their ability to bring unbanked and underbanked individuals into 

branches and the conventional banking system. Activities that seek to tackle these obstacles 

comprise 8 percent of overall responses. 

Banks located in service areas with sizeable immigrant communities report that they must often 

overcome the initial barrier of language and cultural differences. Within the general category, 71 

percent of responses focus specifically on addressing this obstacle. Respondents recommend three 

main approaches: hiring bilingual staff to facilitate communication and relation to immigrant 

customers (49 percent), providing educational and marketing materials in foreign languages (19 

percent), and improving cultural awareness and understanding among bank employees to ensure that 

immigrant customers are treated respectfully and with sensitivity to their cultural background (3 

percent). 

Respondents also note other ways in which banks can overcome obstacles to serving the unbanked 

and underbanked. Modification of government regulations, such as the Bank Secrecy Act and the 

Patriot Act, is cited in 13 percent of responses as a helpful measure in improving banks’ ability to 

serve unbanked and underbanked individuals. Another 11 percent of responses emphasize the 

importance of building trust in the banking system so that individuals not only understand how 

financial products work but also feel comfortable and secure banking with mainstream financial 

institutions. Changing individuals’ preconceived notions of financial institutions is a common issue 

banks face when serving unbanked populations. An additional 5 percent of responses focus on 

obtaining assistance from governments or other third-party organizations for funding or liability 

coverage to reduce risk. For banks, serving the unbanked and underbanked typically yields a lower 

return on investment than that associated with mainstream customers. In addition to the costs of 

marketing, publishing and distributing materials, and conducting outreach visits and education 

sessions, unbanked and underbanked customers often carry lower balances and exhibit higher rates 

of closure and default than their mainstream counterparts according to responses. Banks indicate 

that providing assistance in this regard could encourage banks to further their efforts.
 98 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Distribution Channels 

Approaches to improving and expanding distribution channels are cited in 4 percent of responses as 

an effective way to serve the unbanked and underbanked. Responses in this category delineate 

different approaches to developing more convenient, accessible, and comfortable channels to offer 

banking services to this population. 

Providing a wider range of banking options is suggested in 48 percent of responses. Possible 

strategies to accommodate unbanked individuals include extending hours at branch locations, 

offering mobile and online banking services, deploying ATMs in areas frequented by the population, 

and providing services at alternative off-premise locations, such as in shopping centers or grocery 

stores, rather than in traditional bank offices. Constructing branches in low- to moderate-income 

areas is suggested in 22 percent of responses in this category. By establishing a physical presence in 

the community, banks could improve visibility and exposure to the unbanked and underbanked 

population and create better opportunities for outreach to the community. 

Two other recommended activities, each accounting for 15 percent of responses, address the 

challenge of making unbanked individuals feel comfortable entering and transacting business in a 

bank branch. Offering branch-based programs, such as an open house, is one such activity. 

Unbanked individuals are invited to the bank and are provided information about various bank 

programs, helping to alleviate anxieties or concerns about financial institutions. Banks also cite 

reconfiguring physical aspects of branches to create a more casual and welcoming environment as a 

way to help unbanked individuals feel at ease in bank settings. 

Internal Activities and Initiatives 

A small percentage (3 percent) of responses involve internal activities to improve banks’ 

effectiveness in serving the unbanked and underbanked. Three-quarters (75 percent) of activities 

suggested in this category focus on customer service, either by training or encouraging bank 

employees to treat unbanked individuals respectfully and sensitively or by engaging in individual 

contact with unbanked customers through phone calls, one-on-one counseling, or personal visits. 

These customer service-oriented activities can help unbanked individuals develop a more personal 

connection with the institution and feel comfortable when engaging with bank employees. 

Other suggested internal activities include implementing a corporate initiative that establishes 

organization-wide goals for serving this segment (15 percent) and training bank employees to 

identify needs of the unbanked and underbanked in order to effectively cross-sell products that are 

relevant and beneficial to these customers (10 percent). 

Non-Responses 

This question yielded a total of 16 non-responses. Of these non-responses, 13 either indicate “do 

not know” or “not applicable” because the bank did not perceive there to be an unbanked 

population in their service area. The remaining three responses indicate that no recommendations 

were made because the bank believes that individuals are unbanked by choice, negating any reason 

to provide strategies for bringing them into the conventional banking system. 
 99 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Challenges in Serving or Targeting 

Un/Underbanked Populations 

Question II L. What challenges does your organization face in serving or 

targeting unbanked and underbanked individuals? Please rank order by 

importance, where 1 = greatest challenge, 2 = second greatest challenge, 

etc. 

___ Profitability Issues 

___ Competition from Alternative Service Providers 

___ Unfamiliar with this Population 

___ High Cost of Customer Acquisition 

___ Internal Challenges 

___ Regulatory Barriers Related to Customer Identification 

___ Fraud Concerns 

___ Other 

The greatest challenges to banks are profitability issues and regulatory barriers, which are closely 

followed by fraud concerns, high cost of customer acquisition, and competition from alternative 

service providers. Lower ranking but still important issues are unfamiliarity with the population, 

internal challenges, and “other” considerations. 

QIIL Figure 1. Greatest Challenges in Serving or Targeting Un/underbanked Populations (calculated 

ranking based on reverse scoring) 

Ranking Programs 

1 Profitability Issues 

2 Regulatory Barriers 

3 Fraud Concerns 

4 High Cost of Customer Acquisition 

5 Competition from Alternative Service 

Providers 

6 Unfamiliarity with this Population 

7 Internal Challenges 

8 Other Challenges 
 100 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

 QIIL Figure 2. Statistics 

Weighted 

Profitability 

Issues 

Competition 

from 

Alternative 

Service 

Providers 

Unfamiliar 

with this 

Population

High Cost of 

Customer 

Acquisition

Internal 

Challenges

Regulatory 

Barriers 

Fraud 

Concerns Other

N Valid 5134 4214 3763 4169 3695 4888 4849 1157

 Missing 2306 3226 3677 3271 3744 2552 2590 6283

Mean 2.77 3.57 3.95 3.28 4.18 2.66 2.89 1.65

Median 2.00 3.00 3.00 3.00 4.00 2.00 2.00 1.00

Mode 1 1 1 2 4 1 1 1

Minimum 1 1 1 1 1 1 1 1

Maximum 8 8 8 8 8 8 7 8

QIIL Figure 3. Profitability issues 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 158 1730 33.7

 2 105 1105 21.5

 3 68 688 13.4

 4 66 726 14.1

 5 37 348 6.8

 6 29 254 4.9

 7 22 240 4.7

 8 4 44 .9

 Total 489 5134 100.0

Missing System 196 2306

Total 685 7440

QIIL Figure 4. Competition from alternative 

service providers 

Ranking Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 90 933 22.1

 2 72 806 19.1

 3 63 683 16.2

 4 32 290 6.9

 5 41 372 8.8

 6 48 531 12.6

 7 55 541 12.8

 8 5 58 1.4

 Total 406 4214 100.0

Missing System 279 3226

Total 685 7440
 101 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

QIIL Figure 5. Unfamiliar with this Population 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 72 808 21.5

 2 52 558 14.8

 3 53 551 14.6

 4 33 319 8.5

 5 19 173 4.6

 6 46 451 12.0

 7 81 789 21.0

 8 12 113 3.0

 Total 368 3763 100.0

Missing System 317 3677 

Total 685 7440 

QIIL Figure 6. High Cost of Customer Acquisition 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 61 620 14.9

 2 95 1018 24.4

 3 79 863 20.7

 4 53 567 13.6

 5 60 578 13.9

 6 46 405 9.7

 7 11 110 2.6

 8 2 7 .2

 Total 407 4169 100.0

Missing System 278 3271 

Total 685 7440 

QIIL Figure 7. Internal Challenges 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 30 318 8.6

 2 52 548 14.8

 3 58 574 15.5

 4 72 674 18.2

 5 46 476 12.9

 6 51 519 14.0

 7 53 559 15.1

 8 2 27 .7

 Total 364 3695 100.0

Missing System 321 3744 

Total 685 7440 

QIIL Figure 8. Regulatory Barriers 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 164 1827 37.4

 2 110 1204 24.6

 3 59 605 12.4

 4 26 236 4.8

 5 45 414 8.5

 6 34 309 6.3

 7 29 261 5.3

 8 3 31 .6

 Total 470 4888 100.0

Missing System 215 2552

Total 685 7440

QIIL Figure 9. Fraud Concerns 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 118 1297 26.8

 2 109 1174 24.2

 3 76 756 15.6

 4 58 589 12.1

 5 53 597 12.3

 6 31 301 6.2

 7 20 134 2.8

 Total 465 4849 100.0

Missing System 220 2590

Total 685 7440

QIIL Figure 10. Other 

Ranking Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid 1 65 761 65.8

 2 19 206 17.8

 3 12 121 10.4

 4 4 34 3.0

 5 1 14 1.2

 8 3 21 1.8

 Total 104 1157 100.0

Missing System 581 6283

Total 685 7440
 102 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

Of the 104 banks that rank “other,” 101 banks elaborate on the challenges their organizations face 

while serving the un/underbanked population, mentioning a total of 109 challenges. Using a reverse 

scoring system, the following challenges are listed in order of importance: difficulty identifying and 

communicating with this population, lack of bank resources and product offerings, uneducated 

population or feel as though they do not want/need a bank, not a retail-based bank or not focused 

on this population, ability of population to handle account or bad financial history, and cultural or 

language barriers. 

Question II M. Does your bank perceive any regulatory impediments to 

providing/developing specialized products and services for unbanked or 

underbanked consumers? Yes No 

Regulatory issues are perceived by 39.6 percent of banks as impeding their ability to provide 

products and services to the un/underbanked population. 

QIIM Figure 1. Does your bank perceive any regulatory impediments to provide products and services? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 373 4173 60.4

 Yes 270 2736 39.6

 Total 643 6909 100.0

Missing System 42 531

Total 685 7440

There are differences among regions for banks that perceive regulatory impediments. More than 

one-half (54.5 percent) of banks in the Pacific region and 54.6 percent in New England perceive 

impediments, compared to 28.0 percent in the East South Central and 33.9 percent in the West 

North Central regions. 

QIIM Figure 2. Region 

Does your bank perceive any regulatory impediments to provide products and services? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 196 341 513 459 578 743 859 281 202

 % 45.4% 63.4% 66.0% 72.0% 52.1% 64.0% 66.1% 55.3% 45.5%

Yes Count 236 197 265 179 531 418 441 227 242

 % 54.6% 36.6% 34.0% 28.0% 47.9% 36.0% 33.9% 44.7% 54.5%

Total Count 432 539 778 638 1109 1162 1300 507 444

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 103 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for banks that perceive regulatory impediments. Over half (51.3 

percent) of Tier 2 banks perceive a regulatory impediment, compared with 38.6 percent of banks in 

Tier 3. 

QIIM Figure 3. Tier 

Does your bank perceive any regulatory 

impediments to provide products and services? 1 2 3 

No Count 13 264 3897

 % 52.2% 48.7% 61.4%

Yes Count 11 277 2447

 % 47.8% 51.3% 38.6%

Total Count 24 541 6344

 % 100.0% 100.0% 100.0%

There is a difference between urban and rural banks for banks that perceive regulatory impediments 

to providing services for the un/underbanked. About half (44.4 percent) of urban banks perceive 

regulatory impediments, compared with 35.3 percent of rural banks. 

QIIM Figure 4. Urban/Rural 

Does your bank perceive any 

regulatory impediments to 

provide products and services? Rural HQ Urban HQ 

No Count 2366 1807

 % 64.7% 55.6%

Yes Count 1293 1444

 % 35.3% 44.4%

Total Count 3659 3250

 % 100.0% 100.0%

Question II M-1. If yes, please describe. 

Of the 270 banks that identify regulatory impediments to providing specialized products and 

services to un/underbanked consumers, a number of banks report concerns related to maintaining 

compliance with the Patriot Act and Bank Secrecy Act (BSA). 

 About three-quarters (196) of the banks state that obtaining sufficient identification information 

from non-customers to satisfy the Customer Identification Program (CIP), Know Your 

Customer (KYC), and Patriot Act regulations is a major challenge. 

 The second most frequently mentioned topic of concern is compliance with the Bank Secrecy 

Act (BSA) and Anti-Money Laundering (AML), which is reported by 83 banks. 

 Additionally, 30 banks feel that there are high risks and costs associated with serving this 

population in light of the need to comply with numerous regulations. 
 104 Education and Outreach Efforts FDICBankSurvey_Report_204pjg.doc