105 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Retail Branch Operations 

This chapter addresses changes that banks have made in retail branch operations to better serve 

their customers. This includes the extension of branch hours, addition of bilingual employees, 

modifications in branch design, and strategies for serving unbanked and underbanked individuals. 

These areas include: 

 Bank Hours 

 Languages 

 Modification in Retail Operations 

 Branch Strategies 

This section of the report explores aspects of the Congressional Question 4 and provides data on banks’ efforts to be 

more accessible and to reduce obstacles that may prevent unbanked individuals from establishing conventional accounts. 

Summary 

Banks report that they have modified their retail branch operations in a variety of ways but do not 

always indicate that the changes were solely intended to increase access for unbanked and/or 

underbanked consumers. 

Extended Hours: A majority of banks (59 percent) have extended their branch hours for 

traditional “brick and mortar” branches, retail branches, and limited service branches, with the most 

common time being weekday evenings after 5:00 p.m. Of banks that have extended hours, 82 

percent have expanded their hours past 5:00 p.m. on weekdays, compared with 16 percent offering 

Saturday hours after 1:00 p.m. 

More Languages: Bank branch staff speak a variety of languages that may facilitate access to bank 

facilities for non-native English-speaking un/underbanked individuals. After English, Spanish is the 

most commonly spoken language in bank branches. Forty-seven percent (47 percent) of banks 

employ staff that speak Spanish, followed by Chinese (4 percent), Vietnamese (3 percent), Tagalog 

(2 percent), and Korean (2 percent). 

Chapter 

5
 106 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Modifications to Retail Operations: Nearly two-thirds (64 percent) of banks have modified their 

operations to make them more welcoming or convenient for unbanked and/or underbanked 

individuals to take advantage of their services. These modifications to increase access include 

external ATMs (47 percent), off-premise ATMs (43 percent), and Internet or mobile banking (73 

percent). Only 13 percent of banks have added non-traditional locations. Seventeen percent (17 

percent) have utilized innovative branch designs, and 20 percent have added branches in LMI areas. 

Branch Strategies: In addition to physical changes in branch operations, banks have also increased 

their efforts by providing check cashing (49 percent) and money orders (41 percent) as part of their 

strategy to serve the unbanked and/or underbanked in their market areas. 

Bank Hours 

The majority (59 percent) of banks offer extended branch hours, typically after 5:00 p.m. on 

weekdays and after 1:00 p.m. on Saturdays. Some banks operate offices on Sundays. 

Proportionately, more Tier 1 banks offer extended bank office hours than Tier 2 or Tier 3 banks. 

Question III A. Does your bank offer extended, non-traditional evening 

and/or weekend hours at any of your bank’s locations? Yes No 

QIIIA. Figure 1. Does your bank offer extended hours? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 241 3030 41.0

 Yes 440 4366 59.0

 Total 681 7395 100.0

Missing System 4 44

Total 685 7440

There are some differences among banks that offer extended hours across geographic areas. 

Specifically, 81.2 percent of banks in the Mid-Atlantic region are open for extended hours, 

compared to banks in the Mountain (46.7 percent), East South Central (47.9 percent), South Atlantic 

(51.0 percent), West North Central (55.6 percent), and Pacific (48.8 percent) regions 

QIIIA. Figure 2. Region 

Does your bank offer extended hours? 

 New 

England 

Mid 

Atlantic 

South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 164 109 421 349 444 417 626 270 229

 % 36.8% 18.8% 49.0% 52.1% 37.9% 32.0% 44.4% 53.3% 51.2%

Yes Count 282 471 439 320 729 885 784 237 218

 % 63.2% 81.2% 51.0% 47.9% 62.1% 68.0% 55.6% 46.7% 48.8%

Total Count 446 581 860 669 1174 1302 1410 507 448

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 107 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

There also appear to be differences in extended hours by bank size. All banks in Tier 1 offer 

extended hours but slightly less than 57 percent of Tier 3 banks offer extended hours. 

QIIIA. Figure 3. Tiers 

Does your bank offer extended hours? 

 Tier 1 Tier 2 Tier 3 

No Count 0 90 2939

 % .0% 16.5% 43.1%

Yes Count 25 458 3883

 % 100.0% 83.5% 56.9%

Total Count 25 548 6822

 % 100.0% 100.0% 100.0%

There is a minimal difference between urban (60.1 percent) and rural banks (58.1 percent) in their 

offering of extended banking hours. 

Question III A. If yes, check all that apply, and indicate typical hours: 

Branch Type 

Extended 

Weekday Evening 

Hours (After 5 pm)

Saturday 

Afternoon Hours 

(After 1 pm) Sunday Hours 

Full Service Brick and 

Mortar Branches 

 Until ___ pm Until ___ pm Hours ___ to ____ 

Full Service Retail (Instore) Branches  Until ___ pm Until ___ pm Hours ___ to ____ 

Limited Service 

Branches 

 Until ___ pm Until ___ pm Hours ___ to _____ 
 108 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Of banks that have extended their banking hours, the most commonly extended time for all types of 

branches is after 5:00 p.m. on weekday evenings. Only about 16 percent of banks have full service 

branches open on Saturdays after 1:00 p.m. Banks provide extended hours for 16 percent of in-store 

branches on weekdays after 5:00 p.m., 12 percent on Saturdays after 1:00 p.m., and 5 percent on 

Sundays. 

QIIIA. Figure 1. Percent of Banks Offering Extended Hours by Branch Type 

Branch Type 

Extended Weekday 

Evening Hours 

(After 5 pm) 

Saturday 

Afternoon Hours 

(After 1 pm) Sunday Hours 

Full Service Brick and Mortar 

Branches 

81.2% 15.6% 4.7% 

Full Service Retail (In-store) 

Branches 

16.1% 11.9% 5.1% 

Limited Service Branches 23.1% 5.2% 0.3% 

QIIIA. Figure 2. Brick and Mortar Weekday Evening 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 73 835 18.8

 Yes 372 3611 81.2

 Total 445 4447 100.0

Missing System 240 2993

Total 685 7440

QIIIA. Figure 3. Brick and Mortar Saturday 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 332 3685 84.4

 Yes 107 679 15.6

 Total 439 4365 100.0

Missing System 246 3075

Total 685 7440

QIIIA. Figure 4. Brick and Mortar Sunday 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 399 4158 95.3

 Yes 40 206 4.7

 Total 439 4365 100.0

Missing System 246 3075

Total 685 7440
 109 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

The percentage of banks that have brick and mortar branches open weekday evenings, Saturdays, 

and Sundays appears to be different across regions. For example, the East South Central (16.0 

percent open past 1:00 p.m. on Saturday and 0.0 percent open on Sundays) and West North Central 

(3.2 percent open on Saturday after 1:00 p.m. and 0.4 percent on Sundays) are open less than the 

Mid-Atlantic region (30.3 percent open on Saturdays after 1:00 p.m. and 15.9 percent on Sundays). 

QIIIA. Figure 5. Region: Brick and Mortar Weekday Evening 

Brick and Mortar Weekday Evening 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 41 42 21 93 257 151 168 17 46

 % 13.9% 8.9% 4.7% 28.0% 34.5% 16.9% 21.4% 6.8% 19.6%

Yes Count 254 429 417 241 486 747 617 234 187

 % 86.1% 91.1% 95.3% 72.0% 65.5% 83.1% 78.6% 93.2% 80.4%

Total Count 295 471 438 334 743 898 784 251 232

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

QIIIA. Figure 6. Region: Brick and Mortar Saturday 

Brick and Mortar Saturday 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 243 329 395 269 677 676 759 181 157

 % 86.2% 69.7% 90.2% 84.0% 94.7% 76.4% 96.8% 72.2% 71.7%

Yes Count 39 143 43 51 38 209 25 70 62

 % 13.8% 30.3% 9.8% 16.0% 5.3% 23.6% 3.2% 27.8% 28.3%

Total Count 282 471 438 320 715 885 784 251 218

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

QIIIA. Figure 7. Region: Brick and Mortar Sunday 

Brick and Mortar Sunday 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 263 396 434 320 712 838 781 233 181

 % 93.5% 84.1% 99.2% 100.0% 97.6% 94.8% 99.6% 98.1% 82.7%

Yes Count 18 75 3 0 17 46 3 5 38

 % 6.5% 15.9% .8% .0% 2.4% 5.2% .4% 1.9% 17.3%

Total Count 282 471 438 320 729 885 784 237 218

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 110 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

A greater percentage of larger banks’ brick and mortar branches appear to have extended hours on 

Saturdays, and are open Sundays than smaller banks’. Over two-thirds (69.6 percent) of Tier 1 banks 

have branches that are open after 1:00 p.m. on Saturdays and 43.5 percent are open on Sundays. For 

Tier 2, 43.2 percent are open past 1:00 p.m. on Saturdays and 15.9 percent are open on Sundays. For 

Tier 3, 12.0 percent are open past 1:00 p.m. on Saturdays and 3.2 percent are open on Sundays. 

QIIIA. Figure 8. Tier 

Tier 

1 2 3 

 

 

Brick and 

Mortar 

Weekday 

Evening 

Brick and 

Mortar 

Saturday 

Brick and 

Mortar 

Sunday 

Brick and 

Mortar 

Weekday 

Evening 

Brick and 

Mortar 

Saturday

Brick and 

Mortar 

Sunday 

Brick and 

Mortar 

Weekday 

Evening 

Brick and 

Mortar 

Saturday 

Brick and 

Mortar 

Sunday 

No Count 4 7 14 38 260 385 793 3418 3760

 % 17.4% 30.4% 56.5% 8.3% 56.8% 84.1% 20.0% 88.0% 96.8%

Yes Count 20 17 10 420 198 73 3172 465 123

 % 82.6% 69.6% 43.5% 91.7% 43.2% 15.9% 80.0% 12.0% 3.2%

Total Count 24 24 24 458 458 458 3965 3883 3883

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

There do not appear to be any differences in extended operating hours at brick and mortar branches 

between urban and rural banks. 

Few (16.1 percent) of the responding banks have retail branches that are open on weekday evenings. 

Fewer banks have retail branches open on Saturdays after 1:00 p.m. (11.9 percent) and Sundays (5.1 

percent). 

QIIIA. Figure 9. Retail Weekday Evening 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 333 3663 83.9

 Yes 106 701 16.1

 Total 439 4365 100.0

Missing System 246 3075 

Total 685 7440 

QIIIA. Figure 10. Retail Saturday 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 351 3846 88.1

 Yes 88 519 11.9

 Total 439 4365 100.0

Missing System 246 3075

Total 685 7440

QIIIA. Figure 11. Retail Sunday 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 391 4140 94.9

 Yes 48 224 5.1

 Total 439 4365 100.0

Missing System 246 3075

Total 685 7440
 111 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Retail branch extended hours appear to be similar across regions, except for Sundays. No banks in 

the East South Central region report that they are open on Sundays, while 14.7 percent of Pacific 

banks report that they are open on Sundays. 

QIIIA. Figure 12. Region 

New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

 Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

Retail 

Sunday 

No Count 277 410 435 320 715 814 759 223 186

 % 98.4% 87.0% 99.3% 100.0% 98.1% 92.0% 96.8% 94.2% 85.3%

Yes Count 5 61 3 0 14 71 25 14 32

 % 1.6% 13.0% .7% .0% 1.9% 8.0% 3.2% 5.8% 14.7%

Total Count 282 471 438 320 729 885 784 237 218

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

Consistent with the other differences for extended hours at retail branches on weekday evenings, 

Saturdays after 1:00 p.m., and Sundays, the percentage of Tier 1 banks offering extended retail hours 

is twice that of Tier 2 and more than nine times the percentage of Tier 3 banks offering extended 

hours on Saturdays. 

QIIIA. Figure 13. Tier 

Tier 1 Tier 2 Tier 3 

 

Retail 

Weekday 

Evening 

Retail 

Saturday 

Retail 

Sunday 

Retail 

Weekday 

Evening 

Retail 

Saturday

Retail 

Sunday 

Retail 

Weekday 

Evening 

Retail 

Saturday

Retail 

Sunday 

No Count 5 6 9 281 298 371 3377 3541 3760

 % 21.7% 26.1% 39.1% 61.4% 65.2% 81.1% 87.0% 91.2% 96.8%

Yes Count 19 18 15 177 160 87 506 342 123

 % 78.3% 73.9% 60.9% 38.6% 34.8% 18.9% 13.0% 8.8% 3.2%

Total Count 24 24 24 458 458 458 3883 3883 3883

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

Minimal differences are evident between urban and rural banks for extended banking hours on 

weekday evenings, Saturdays after 1:00 p.m., and Sundays. 
 112 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

About a quarter (23.1 percent) of banks have extended hours for limited service branches on 

weekday evenings after 5:00 p.m. Very few banks have extended hours for limited service branches 

for Saturday and Sunday hours (5.2 percent and 0.3 percent, respectively). This may likely be 

explained by the fact that few banks operate limited service branches. 

QIIIA. Figure 14. Limited Service Weekday 

Evening 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 337 3357 76.9

 Yes 102 1008 23.1

 Total 439 4365 100.0

Missing System 246 3075

Total 685 7440

QIIIA. Figure 15. Limited Service Saturday 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 413 4139 94.8

 Yes 26 226 5.2

 Total 439 4365 100.0

Missing System 246 3075

Total 685 7440

QIIIA. Figure 16. Limited Service Sunday 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 434 4339 99.7

 Yes 4 11 .3

 Total 438 4351 100.0

Missing System 247 3089

Total 685 7440

Minimal differences across regions are evident for limited service branches, except for weekday 

evening hours when 36.6 percent of West South Central banks are open, compared to 7.8 percent of 

Pacific banks and 9.0 percent of Mid-Atlantic banks. 

QIIIA. Figure 17. Region: Limited Service Weekday Evening 

Limited Service Weekday Evening 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East North 

Central 

West 

North 

Central Mountain Pacific 

No Count 253 429 353 247 462 628 586 196 201

 % 89.9% 91.0% 80.7% 77.2% 63.4% 71.0% 74.7% 82.7% 92.2%

Yes Count 28 42 84 73 267 256 198 41 17

 % 10.1% 9.0% 19.3% 22.8% 36.6% 29.0% 25.3% 17.3% 7.8%

Total Count 282 471 438 320 729 885 784 237 218

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 113 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Minimal differences are evident for extended hours at limited service branches tiers, other than for 

Sunday hours. No Tier 3 banks have Sunday hours, but 4.3 percent of Tier 1 banks operate on 

Sundays. 

QIIIA. Figure 18. Tier 

New Tier 

1 2 3 

 

 

Limited 

Service 

Weekday 

Evening 

Limited 

Service 

Saturday 

Limited 

Service 

Sunday 

Limited 

Service 

Weekday 

Evening 

Limited 

Service 

Saturday

Limited 

Service 

Sunday 

Limited 

Service 

Weekday 

Evening 

Limited 

Service 

Saturday

Limited 

Service 

Sunday 

No Count 16 21 23 361 427 447 2980 3691 3869

 % 65.2% 87.0% 95.7% 78.8% 93.2% 97.7% 76.8% 95.1% 100.0%

Yes Count 8 3 1 97 31 10 902 191 0

 % 34.8% 13.0% 4.3% 21.2% 6.8% 2.3% 23.2% 4.9% .0%

Total Count 24 24 24 458 458 458 3883 3883 3869

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

There appear to be some differences between the percentage of urban and rural banks offering 

extended hours, including at brick and mortar branches on weekday evenings, Saturdays after 1:00 

p.m., and Sundays; at retail branches on weekday evenings, Saturday afternoons, and Sundays; and at 

limited service branches on weekday evenings. A larger percentage of urban banks have extended 

hours for all branches, except for limited service weekday evening hours. 

QIIIA. Figure 19. Urban/Rural 

Urban/Rural 

Rural HQ Urban HQ 

 

 

Brick and 

Mortar 

Weekday 

Evening 

Brick and 

Mortar 

Saturday 

Brick and 

Mortar 

Sunday 

Brick and 

Mortar 

Weekday 

Evening 

Brick and 

Mortar 

Saturday 

Brick and 

Mortar 

Sunday 

No Count 554 2116 2284 281 1569 1874

 % 23.7% 91.8% 99.7% 13.3% 76.2% 90.4%

Yes Count 1778 188 7 1833 491 199

 % 76.3% 8.2% .3% 86.7% 23.8% 9.6%

Total Count 2332 2305 2291 2114 2060 2073

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 114 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

QIIIA. Figure 20. Urban/Rural 

Urban/Rural 

Rural HQ Urban HQ 

 

Retail 

Weekday 

Evening 

Retail 

Saturday 

Retail 

Sunday 

Retail 

Weekday 

Evening 

Retail 

Saturday 

Retail 

Sunday 

No Count 1993 2103 2223 1670 1743 1918

 % 87.0% 91.8% 97.0% 80.5% 84.1% 92.5%

Yes Count 298 188 69 404 331 156

 % 13.0% 8.2% 3.0% 19.5% 15.9% 7.5%

Total Count 2291 2291 2291 2073 2073 2073

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

QIIIA. Figure 21. Urban/Rural 

Urban/Rural 

Rural HQ Urban HQ 

 

 

Limited 

Service 

Weekday 

Evening 

Limited 

Service 

Saturday 

Limited 

Service 

Sunday 

Limited 

Service 

Weekday 

Evening 

Limited 

Service 

Saturday 

Limited 

Service 

Sunday 

No Count 1576 2206 2291 1780 1933 2048

 % 68.8% 96.3% 100.0% 85.9% 93.2% 99.4%

Yes Count 715 86 0 293 140 11

 % 31.2% 3.7% .0% 14.1% 6.8% .6%

Total Count 2291 2291 2291 2073 2073 2060

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

Language 

Over half (52 percent) of all banks surveyed have branch staff who are able to use foreign language 

skills when interacting with customers. The survey questions identified five languages based on the 

languages that most people speak, if they do not speak English well, as reflected by the U.S. Census 

data. Other than the languages specified in the survey (Spanish, Chinese, Vietnamese, Korean, and 

Tagalog), 13.0 percent of banks have staff members who can speak a different language. These 

languages are listed in the survey form, but 11 other languages are identified by banks. 

QIIIB. Figure 1. Languages other than English Spoken by Branch Staff 

Languages Banks with staff that interact 

 with that language 

Spanish 47.0% 

Chinese 3.6% 

Vietnamese 3.0% 

Korean 2.1% 

Tagalog 2.2% 

Other 13.0% 
 115 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Question III B. What languages, other than English, does your branch staff 

use to interact with customers? 

 Spanish Chinese Vietnamese Korean Tagalog Other 

QIIIB. Figure 2. Spanish 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 314 3946 53.0

 Yes 371 3494 47.0

 Total 685 7440 100.0

QIIIB. Figure 3. Chinese 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 635 7173 96.4

 Yes 50 267 3.6

 Total 685 7440 100.0

QIIIB. Figure 4. Vietnamese 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 642 7215 97.0

 Yes 43 225 3.0

 Total 685 7440 100.0

QIIIB. Figure 5. Korean 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 647 7283 97.9

 Yes 38 157 2.1

 Total 685 7440 100.0

QIIIB. Figure 6. Tagalog 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 647 7276 97.8

 Yes 38 164 2.2

 Total 685 7440 100.0

QIIIB. Figure 7. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 557 6476 87.0

 Yes 128 964 13.0

 Total 685 7440 100.0

Banks identified 11 other languages: French (27), German (27), Russian (25), Polish (24), Italian (23), 

Portuguese (17), Hindi (16), Arabic (15), American Sign Language (13), Greek (13), and Japanese 

(12). 

Overall, 51.7 percent of banks have a staff member that speaks a language other than English. 

QIIIB. Figure 8. Does the bank have staff that speaks a language other than English? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 281 3597 48.3

 Yes 404 3843 51.7

 Total 685 7440 100.0
 116 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

There appear to be regional differences in the languages spoken by staff at bank branches for 

Spanish, Chinese, Vietnamese, Korean, Tagalog, and “other.” 

QIIIB. Figure 9. Region: Spanish 

Spanish 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 212 325 421 482 342 827 1046 130 161

 % 47.6% 56.0% 48.9% 70.6% 29.0% 62.9% 74.2% 25.6% 34.9%

Yes Count 234 256 439 201 835 488 364 377 300

 % 52.4% 44.0% 51.1% 29.4% 71.0% 37.1% 25.8% 74.4% 65.1%

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%

QIIIB. Figure 10. Region: Chinese 

Chinese 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 349 552 851 683 1174 1296 1405 503 360

 % 78.3% 95.1% 99.0% 100.0% 99.7% 98.5% 99.7% 99.1% 78.0%

Yes Count 97 28 9 0 3 19 5 5 102

 % 21.7% 4.9% 1.0% .0% .3% 1.5% .3% .9% 22.0%

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%

QIIIB. Figure 11. Region: Vietnamese 

Vietnamese 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 390 578 844 669 1149 1290 1402 506 387

 % 87.5% 99.5% 98.1% 98.0% 97.7% 98.0% 99.4% 99.8% 83.9%

Yes Count 56 3 16 14 28 26 8 1 74

 % 12.5% .5% 1.9% 2.0% 2.3% 2.0% .6% .2% 16.1%

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%
 117 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

QIIIB. Figure 12. Region: Korean 

Korean 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 445 526 851 683 1174 1286 1405 506 408

 % 99.8% 90.6% 99.0% 100.0% 99.7% 97.8% 99.7% 99.8% 88.4%

Yes Count 1 55 9 0 3 29 5 1 54

 % .2% 9.4% 1.0% .0% .3% 2.2% .3% .2% 11.6%

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%

QIIIB. Figure 13. Region: Tagalog 

Tagalog 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 442 574 844 683 1177 1281 1405 506 363

 % 99.2% 98.9% 98.1% 100.0% 100.0% 97.4% 99.7% 99.8% 78.7%

Yes Count 3 7 16 0 0 34 5 1 98

 % .8% 1.1% 1.9% .0% .0% 2.6% .3% .2% 21.3%

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%

QIIIB. Figure 14. Region: Other 

Other 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 239 431 766 652 1132 1109 1338 465 343

 % 53.7% 74.3% 89.1% 95.5% 96.2% 84.3% 94.9% 91.7% 74.3%

Yes Count 206 149 94 31 45 206 72 42 119

 % 46.3% 25.7% 10.9% 4.5% 3.8% 15.7% 5.1% 8.3% 25.7%

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%

A greater percentage of Tier 1 banks have staff that can speak Spanish (100 percent), Chinese (66.7 

percent), Vietnamese (62.5 percent), Korean (62.5 percent), Tagalog (50.0 percent), and “other” 

languages (70.8 percent) than Tier 2 and Tier 3 banks. 

QIIIB. Figure 15. Tier: Spanish/Chinese/Vietnamese 

Tier 

1 2 3 

 

 Spanish Chinese Vietnamese Spanish Chinese Vietnamese Spanish Chinese Vietnamese

No Count 0 8 9 118 479 492 3828 6686 6713

 % .0% 33.3% 37.5% 21.4% 86.8% 89.3% 55.8% 97.4% 97.8%

Yes Count 25 17 16 434 73 59 3035 178 150

 % 100.0% 66.7% 62.5% 78.6% 13.2% 10.7% 44.2% 2.6% 2.2%

Total Count 25 25 25 551 551 551 6863 6863 6863

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 118 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

QIIIB. Figure 16. Tier: Korean/Tagalog/Other 

Tier 

1 2 3 

 

 Korean Tagalog Other Korean Tagalog Other Korean Tagalog Other 

No Count 9 13 7 492 482 357 6781 6781 6111

 % 37.5% 50.0% 29.2% 89.3% 87.4% 64.8% 98.8% 98.8% 89.0%

Yes Count 16 13 18 59 69 194 82 82 752

 % 62.5% 50.0% 70.8% 10.7% 12.6% 35.2% 1.2% 1.2% 11.0%

Total Count 25 25 25 551 551 551 6863 6863 6863

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

A larger percentage of urban banks have staff who can speak Spanish, Chinese, Vietnamese, Korean, 

and Tagalog than rural banks. Urban banks have nearly twice as high a percentage of branch staff 

with foreign language capabilities in Spanish, Chinese, Vietnamese, Korean, Tagalog, and “other” 

languages than rural banks. 

QIIIB. Figure 17. Urban/Rural: Spanish/Chinese/Vietnamese 

Urban Rural 

Rural HQ Urban HQ 

 

 Spanish Chinese Vietnamese Spanish Chinese Vietnamese 

No Count 2523 3932 3932 1423 3241 3283 

 % 63.7% 99.3% 99.3% 40.9% 93.1% 94.3% 

Yes Count 1436 27 27 2057 240 198 

 % 36.3% .7% .7% 59.1% 6.9% 5.7% 

Total Count 3959 3959 3959 3480 3480 3480 

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

QIIIB. Figure 18. Urban/Rural: Korean/Tagalog/Other 

Urban Rural 

Rural HQ Urban HQ 

 

 Korean Tagalog Other Korean Tagalog Other 

No Count 3946 3932 3669 3337 3344 2807 

 % 99.7% 99.3% 92.7% 95.9% 96.1% 80.7% 

Yes Count 14 27 291 143 137 673 

 % .3% .7% 7.3% 4.1% 3.9% 19.3% 

Total Count 3959 3959 3959 3480 3480 3480 

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 
 119 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Modifications in Retail Operations 

Question III C. Has the bank modified its retail operations over the past 

five years to make it easier or more welcoming or convenient for unbanked 

or underbanked consumers to take advantage of its services? 

 Yes No 

About two-thirds (64.0 percent) of all banks have modified their retail operations in the past five 

years to make the bank more welcoming or convenient for un/underbanked customers. 

QIIIC. Figure 1. Has the bank modified its retail operations? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 211 2630 36.0

 Yes 464 4684 64.0

 Total 675 7313 100.0

Missing System 10 127

Total 685 7440

A greater percentage of Tier 1 (100 percent) banks and Tier 2 banks (84.2 percent) have modified 

their retail operations to be more convenient or welcoming for unbanked individuals than Tier 3 

banks (62.3 percent). 

QIIIC. Figure 2. Tier 

Has the bank modified its retail operations? 1 2 3 

No Count 0 87 2543

 % .0% 15.8% 37.7%

Yes Count 25 461 4197

 % 100.0% 84.2% 62.3%

Total Count 25 548 6740

 % 100.0% 100.0% 100.0%

There are minimal differences among regions for banks that have modified their retail operations. 

Little difference between urban and rural banks is evident in the percentage of banks that have 

modified their retail operations to make it easier for or more welcoming for un/underbanked 

individuals to take advantage of their services. 
 120 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Question III C-1. If yes, which approaches has the bank pursued? (Check 

all that apply) 

Extended banking hours Non-traditional locations 

 (community centers, supermarkets, etc.) 

 New branch located in LMI area Innovative branch formats/designs 

 (e.g., more casual lobby décor) 

 Internet or mobile banking External ATMs (walk-up and through the wall) 

 Off-premise ATMs Other 

By far, the most common way that banks have made their retail branches more welcoming to 

un/underbanked customers is through Internet or mobile banking options. Seventy-three percent of 

banks that have made changes to their retail operations have done so by offering these services. 

Installing external and off-premise ATMs are also common approaches. 

Under half of banks (43.6 percent) that have made changes have extended their banking hours to 

make banking more convenient for the unbanked and underbanked. 

QIIIC-1. Figure 1. Extended Banking Hours 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 239 2643 56.4

 Yes 225 2040 43.6

 Total 464 4684 100.0

Few (13.1 percent) banks have added non-traditional locations. 

QIIIC-1. Figure 2. Non-traditional Locations 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 372 4072 86.9

 Yes 92 612 13.1

 Total 464 4684 100.0

One in five (20.0 percent) banks has opened branches in LMI areas. 

QIIIC-1. Figure 3. New Branch Located in LMI Areas 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 331 3748 80.0

 Yes 133 936 20.0

 Total 464 4684 100.0
 121 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Few (16.5 percent) banks have used an innovative branch design. 

QIIIC-1. Figure 4. Innovative Branch Design 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 363 3910 83.5

 Yes 101 773 16.5

 Total 464 4684 100.0

About three-quarters (73.0 percent) of banks utilize Internet and mobile banking. 

QIIIC-1. Figure 5. Internet or Mobile Banking 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 117 1266 27.0

 Yes 347 3418 73.0

 Total 464 4684 100.0

Less than one-half (47.3 percent) of banks have external ATMs. 

QIIIC-1. Figure 6. External ATMs 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 221 2469 52.7

 Yes 243 2215 47.3

 Total 464 4684 100.0

Less than one-half (43.1 percent) of the banks have off-premise ATMs.

QIIIC-1. Figure 7. Off-premise ATMs 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 231 2664 56.9

 Yes 233 2020 43.1

 Total 464 4684 100.0

QIIIC-1. Figure 8. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 391 4021 85.9

 Yes 73 662 14.1

 Total 464 4684 100.0
 122 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Some (14.1 percent) banks report other ways that they have modified their retail operations to make 

it easier or more welcoming for unbanked and underbanked consumers to use their services. The 

more frequently mentioned other responses are: bilingual staff, products or services (18), product 

offering geared towards this population (11), extended branch hours (7), and mobile banking (6). 

There appear to be some differences among banks’ reported approaches to modifying retail 

operations for external ATMs and other approaches across regions. For example, 69.2 percent of 

New England banks have installed external ATMs, compared with 34.2 percent of West North 

Central banks. A higher percentage of East South Central banks (24.1 percent) describe using 

another approach to modify retail operations compared with Mountain banks (0.0 percent). 

QIIIC-1. Figure 9. Region: External ATMs 

External ATMs 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 103 152 237 281 376 525 574 103 117

 % 30.8% 44.1% 55.8% 65.5% 44.7% 58.3% 65.8% 38.3% 43.7%

Yes Count 230 193 188 148 465 376 299 165 150

 % 69.2% 55.9% 44.2% 34.5% 55.3% 41.7% 34.2% 61.7% 56.3%

Total Count 333 345 425 430 842 902 873 268 266

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

QIIIC-1. Figure 10. Region: Other 

Other 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 264 259 386 326 712 726 828 268 253

 % 79.5% 75.1% 90.6% 75.9% 84.5% 80.6% 94.8% 100.0% 94.9%

Yes Count 68 86 40 104 130 175 46 0 14

 % 20.5% 24.9% 9.4% 24.1% 15.5% 19.4% 5.2% .0% 5.1%

Total Count 333 345 425 430 842 902 873 268 266

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 123 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

A greater percentage of Tier 1 banks report they have made changes to their retail operations by 

extending banking hours, adding non-traditional locations, opening new branches in LMI areas, 

utilizing innovative branch design, deploying external ATMs, and implementing “other” approaches 

than Tier 2 banks and Tier 3 banks. 

QIIIC-1. Figure 11. Tier: Extended Banking Hours/Non-traditional Locations/New Branch Located in LMI 

Areas 

Tier 

1 2 3 

 

 

Extended 

banking 

hours 

Nontraditional 

locations 

New 

branch 

located 

in LMI 

areas 

Extended 

banking 

hours 

Nontraditional 

locations 

New 

branch 

located 

in LMI 

areas 

Extended 

banking 

hours 

Nontraditional 

locations 

New 

branch 

located 

in LMI 

areas 

No Count 5 10 1 191 302 260 2447 3760 3486

 % 20.8% 41.7% 4.2% 41.4% 65.4% 56.4% 58.3% 89.6% 83.1%

Yes Count 20 15 24 271 160 201 1750 438 711

 % 79.2% 58.3% 95.8% 58.6% 34.6% 43.6% 41.7% 10.4% 16.9%

Total Count 25 25 25 461 461 461 4197 4197 4197

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

QIIIC-1. Figure 12. Tier: Innovative Branch Design/Internet or Mobile Banking/External ATMs 

Tier 

1 2 3 

 

 

Innovative 

branch 

design 

Internet 

or 

mobile 

banking 

External 

ATMs 

Innovative 

branch 

design 

Internet 

or 

mobile 

banking

External 

ATMs 

Innovative 

branch 

design 

Internet 

or 

mobile 

banking

External 

ATMs 

No Count 9 3 5 319 101 166 3582 1162 2297

 % 37.5% 12.5% 20.8% 69.2% 21.8% 36.1% 85.3% 27.7% 54.7%

Yes Count 16 22 20 142 361 295 615 3035 1900

 % 62.5% 87.5% 79.2% 30.8% 78.2% 63.9% 14.7% 72.3% 45.3%

Total Count 25 25 25 461 461 461 4197 4197 4197

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

QIIIC-1. Figure 13. Tier: Off-premise ATMs/Other 

Tier 

1 2 3 

 Off-premise 

ATMs Other 

Off-premise 

ATMs Other 

Off-premise 

ATMs Other 

No Count 2 17 160 381 2502 3623

 % 8.3% 66.7% 34.6% 82.7% 59.6% 86.3%

Yes Count 23 8 302 80 1695 574

 % 91.7% 33.3% 65.4% 17.3% 40.4% 13.7%

Total Count 25 25 461 461 4197 4197

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 124 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

A greater percentage of urban banks have modified their retail operations through opening nontraditional locations, opening branches in LMI areas, utilizing innovative branch design, and 

deploying external ATMs than rural banks. 

A larger percentage of urban banks pursue non-traditional locations, new branches in LMI areas, 

and innovative branch design strategies than rural banks. Also, a larger percentage of urban banks 

pursue external ATMs and off-premise ATMs strategies than rural banks. 

QIIIC-1. Figure 14. Rural 

Rural HQ 

 

 

Extended 

banking 

hours 

Nontraditional 

locations 

New 

branch 

located in 

LMI areas 

Innovative 

branch 

design 

Internet 

or 

mobile 

banking

External 

ATMs 

Offpremise 

ATMs Other 

No Count 1508 2359 2226 2264 732 1450 1511 2243

 % 58.0% 90.8% 85.6% 87.1% 28.1% 55.8% 58.1% 86.3%

Yes Count 1091 240 373 335 1867 1149 1088 356

 % 42.0% 9.2% 14.4% 12.9% 71.9% 44.2% 41.9% 13.7%

Total Count 2599 2599 2599 2599 2599 2599 2599 2599

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

QIIIC-1. Figure 15. Urban 

Urban HQ 

 

Extended 

banking 

hours 

Nontraditional 

locations 

New branch 

located in 

LMI areas 

Innovative 

branch 

design 

Internet or 

mobile 

banking 

External 

ATMs 

Offpremise 

ATMs Other 

 Count 1135 1713 1522 1647 534 1019 1153 1778

No % 54.5% 82.2% 73.0% 79.0% 25.6% 48.9% 55.3% 85.3%

 Count 949 372 563 438 1550 1066 932 307

Yes % 45.5% 17.8% 27.0% 21.0% 74.4% 51.1% 44.7% 14.7%

 Count 2085 2085 2085 2085 2085 2085 2085 2085

Total % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Question III C-2. If yes, please describe what you have done. 

Fewer than half (43.2 percent) of the banks responding to this open-ended question provide a 

written description of their approach in modifying their retail operations. Mobile or Internet banking 

and ATM placement are the two most common approaches cited by banks. Opening new branches 

and adding external ATMs in LMI areas are other common approaches to serving unbanked and/or 

underbanked consumers. 

Written descriptions provided by 227 of responding banks include approaches previously listed in 

Question III C-1. The three most frequently described changes are Internet or mobile banking (147), 

adding new ATMs (116), and extending banking hours (95). 
 125 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

For the 70 banks that describe branch modifications other than those previously listed in Question 

III C-1, 27 identify adding bilingual staff, materials, or services to their operations. These additions 

facilitate communication and make banking services more accessible to non-English speaking 

individuals, who may comprise a significant segment of unbanked or underbanked populations in a 

given market area. 

Sixteen banks mention offering new products specifically aimed at the un/underbanked market, 

such as free checking and savings accounts, and one bank described how it assumes the role of 

check casher for non-customers. That bank’s program involves cashing checks drawn on other 

banks for a fee in the range of 1.0 percent to 1.5 percent with a maximum fee cap. This service is 

offered as a way to serve the immediate needs of the unbanked and/or underbanked and, over time, 

convert them to a banking customer. In addition, the bank provides financial education about 

banking products. 

Check cashing as a branch strategy for serving the unbanked is identified in the following section. 

Bank policies and pricing are examined more fully in Chapter 6. 

Branch Strategies 

Question III D. Please indicate efforts your bank makes as part of its 

branch strategy to serve the unbanked and underbanked in your market 

areas: 

 Check cashing Money orders Kiosks for check cashing 

 Bill payment services Prepaid card issuance and reloading Other 

QIIID. Figure 1. Percent of Banks Branch Strategies to Serve Un/Underbanked by Effort 

Efforts Percent of Banks 

Check Cashing 49.0% 

Money Orders 41.4% 

Bill Payment 18.2% 

Prepaid Cards 12.2% 

Other 11.4% 

Kiosks for Check Cashing 0.8% 

Overall, banks offer a limited range of products and service to the unbanked and underbanked 

individuals. The most common services offered are check cashing (49.0 percent) and money orders 

(41.4 percent). Bill payment (18.2 percent) and prepaid cards (12.2 percent) are the next two most 

common services offered to serve unbanked and/or underbanked individuals as part of the branch 

strategy to serve the unbanked and/or underbanked. 
 126 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

About half (49.0 percent) of banks offer check cashing service as part of their branch strategy to 

serve unbanked and underbanked individuals in their market areas. 

QIIID. Figure 2. Check Cashing 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 346 3795 51.0

 Yes 339 3645 49.0

 Total 685 7440 100.0

Less than half (41.4 percent) of banks sell money orders as part of their branch strategy for serving 

the unbanked and underbanked in their market areas. 

QIIID. Figure 3. Money Orders 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 403 4358 58.6

 Yes 282 3082 41.4

 Total 685 7440 100.0

Very few (0.8 percent) banks offer kiosks for check cashing as part of their branch strategy for 

serving the unbanked and underbanked in their market areas. 

QIIID. Figure 4. Kiosks for Check Cashing 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 679 7381 99.2

 Yes 6 59 .8

 Total 685 7440 100.0

Providing bill payment services is the third most common (18.2 percent) service banks offer as part 

of their branch strategy to serve the unbanked and underbanked in their market areas. 

QIIID. Figure 5. Bill Payment 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 547 6085 81.8

 Yes 138 1355 18.2

 Total 685 7440 100.0
 127 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

Some (12.2 percent) banks offer prepaid cards as part of their branch strategy for serving the 

unbanked and underbanked in their market areas. 

QIIID. Figure 6. Prepaid Card 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 593 6536 87.8

 Yes 92 904 12.2

 Total 685 7440 100.0

Additionally, 11.4 percent of banks offer other services as part of their branch strategy for serving 

the unbanked and underbanked in their market areas. 

Banks mention 96 other efforts as part of their branch strategies. The most frequently mentioned 

items include: offering basic products (19), cashing government, payroll, and cashier checks (17), 

offering debit/prepaid/credit cards (9), and providing mobile banking options (6). Seven banks 

report “none.” 

QIIID. Figure 7. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 595 6594 88.6

 Yes 90 846 11.4

 Total 685 7440 100.0

Differences are evident across regions for banks offering money orders and check cashing as their 

branch strategies. For example, a smaller percentage of banks in the New England (34.8 percent) 

and Mid-Atlantic (30.8 percent) regions offer check cashing compared with banks in the West North 

Central (61.9 percent) and West South Central (66.0 percent) regions. In contrast, a larger percentage 

of banks in the East North Central (53.9 percent) and West North Central (58.0 percent) offer 

money orders than banks in the East South Central (21.7 percent), New England (25.3 percent), 

South Atlantic (25.2 percent), and Pacific (26.2 percent) regions. 

QIIID. Figure 8. Region: Check Cashing 

Check Cashing 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 291 402 521 374 400 707 537 285 279

 % 65.2% 69.2% 60.6% 54.8% 34.0% 53.7% 38.1% 56.2% 60.4%

Yes Count 155 179 339 309 777 609 873 222 183

 % 34.8% 30.8% 39.4% 45.2% 66.0% 46.3% 61.9% 43.8% 39.6%

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%
 128 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

QIIID. Figure 9. Region: Money Orders 

Money Orders 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 333 332 643 535 674 606 593 302 340

 % 74.7% 57.2% 74.8% 78.3% 57.3% 46.1% 42.0% 59.5% 73.8%

Yes Count 113 249 216 148 503 710 817 205 121

 % 25.3% 42.8% 25.2% 21.7% 42.7% 53.9% 58.0% 40.5% 26.2%

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%

Branch offerings are similar across banks sizes, except for money orders and “other” offerings. 

About two-thirds (66.7 percent) of Tier 1 banks offer money orders as part or their strategy to serve 

the unbanked and underbanked, compared with 35.3 percent of Tier 2 banks and 53.1 percent of 

Tier 3 banks. 

QIIID. Figure 10. Tier: Money Orders/Other 

New Tier 

Tier 1 Tier 2 Tier 3 

 

 Money Orders Other Money Orders Other Money Orders Other 

No Count 8 18 298 364 1969 3664

 % 33.3% 70.8% 64.7% 78.9% 46.9% 87.3%

Yes Count 17 7 163 97 2229 533

 % 66.7% 29.2% 35.3% 21.1% 53.1% 12.7%

Total Count 25 25 461 461 4197 4197

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

A larger percentage of rural banks offer check cashing, money orders, and prepaid debit cards as a 

strategy to serve the unbanked and underbanked than urban banks. 

QIIID. Figure 11. Urban/Rural: Check Cashing/Money Orders/Kiosk for Check Cashing 

Rural HQ Urban HQ 

 Check 

cashing Money Orders 

Kiosks for 

check 

cashing 

Check 

cashing Money Orders 

Kiosks for 

check 

cashing 

No Count 1549 2045 3918 2246 2313 3462

 % 39.1% 51.6% 99.0% 64.5% 66.5% 99.5%

Yes Count 2411 1914 41 1234 1168 18

 % 60.9% 48.4% 1.0% 35.5% 33.5% .5%

Total Count 3959 3959 3959 3480 3480 3480

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 129 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 

QIIID. Figure 12. Urban/Rural: Bill Payment/Prepaid Card/Other 

Rural HQ Urban HQ 

 Bill payment Prepaid card Other Bill payment Prepaid card Other 

No Count 3234 3392 3590 2851 3144 3004

 % 81.7% 85.7% 90.7% 81.9% 90.3% 86.3%

Yes Count 725 568 369 630 336 477

 % 18.3% 14.3% 9.3% 18.1% 9.7% 13.7%

Total Count 3959 3959 3959 3480 3480 3480

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 130 Retail Branch Operations FDICBankSurvey_Report_204pjg.doc 
 131 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Services Provided to 

Non-Customers 

This chapter examines the following topics: 

 Check Cashing Policies 

 Identification Required for Non-Customers to Cash Checks 

 Check Cashing Fees (if charged) 

 Transaction Products Offered and Fees 

 Remittances 

This chapter addresses the Congressional Question 3: efforts financial institutions make at converting unbanked money 

order, wire transfer, and international remittance customers into conventional account holders. 

Summary 

Banks can and do provide important financial services to unbanked and underbanked individuals. 

However, many transaction services are not offered to individuals who do not hold conventional 

deposit-based transaction accounts due to operational challenges and risks for banks. 

Check Cashing: From banks’ perspectives, cashing checks for non-customers presents risks of 

monetary losses on fraudulent checks with little recourse. Additionally, identification requirements 

and regulatory policies (e.g., CIP, BSA) challenge banks’ operations and compliance. Although banks 

were not surveyed about specific regulations, these were identified as obstacles which may have 

caused most banks to limit check cashing, if offered at all, to only certain “on-us” items for 

unbanked and underbanked individuals. Over 95 percent of banks will cash checks for noncustomers for on-us personal and business checks. In contrast, less than one-third (32 percent) of 

banks will cash a local payroll check not drawn on their bank for a non-customer. Of those banks 

that will cash payroll checks, 87 percent charge a fee. 

When cashing checks for non-customers, banks depend upon government-issued photo 

identification (ID) to verify the identity of the individual. Banks typically accept driver’s licenses (92 

percent), state-issued photo IDs (86 percent), and U.S. or foreign passports (81 percent) as a primary 

form of ID. 

Chapter 

6
 132 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Check cashing presents opportunities for banks to bring unbanked and underbanked individuals into 

the banking system by acting as a point-of-entry. Over two-thirds (69 percent) of banks provide 

teller and customer service training that includes strategies to encourage account opening. 

Payment Products: The majority of banks have policies that prohibit or limit the availability of 

needed transaction products and services for non-customers; slightly more than one-third (37 

percent) of banks offer official checks or money orders, even fewer offer bill payment (12 percent) 

and international remittance services (6 percent). About one-third (32 percent) of banks are 

concerned about offering remittances due to regulatory considerations. Banks’ policies differ among 

regions and bank size. 

Check Cashing Policies 

For non-customers, nearly all banks cash business (95.5 percent) and personal checks (96.4 percent) 

drawn on their bank. Importantly, more than half of banks (58.1 percent) will cash government 

checks. In contrast, only 31.9 percent of banks cash payroll checks not drawn on their bank for noncustomers, and only 22.7 percent of banks cash business checks not drawn on their bank. Only 6.4 

percent of banks cash personal checks not drawn on their bank, and 2.4 percent cash doubleendorsed checks from third parties for non-customers. Common reasons for limiting check cashing 

for non-customers are described in Question IVA-1. 

For non-customers who cash an on-us business check, 12.9 percent of banks charge a fee. Twelve 

percent of banks charge a fee for non-customers to cash on-us personal checks. Of the banks that 

cash government checks, 58.2 percent charge a fee for non-customers. Among banks that cash 

checks not drawn on their bank for non-customers, most charge fees for payroll checks (86.9 

percent), business checks (92.2 percent), and personal checks (94.9 percent). 
 133 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Question IVA. If an individual does not have an account relationship with 

the bank, will the bank typically cash the following types of checks? 

If Yes: 

Type of Check 

Cash Check for 

Non-Customer? 

Is a Fee 

Charged? 

Typical fee per 

check cashed by 

non-customers* 

Please indicate 

either a fixed 

dollar amount or 

percentage of 

face value 

Personal check drawn on your bank (On-us) 96.4% 12.0% $5.00 

Business check drawn on your bank (On-us) 95.5% 12.9% $5.00 

Government check 58.1% 58.2% $5.00 

Payroll check not drawn on your bank (Local) 31.9% 86.9% $5.00 

Business check not drawn on your bank (Local) 22.7% 92.2% $5.00 

Personal check not drawn on your bank (Local) 6.4% 94.9% $5.00 

Double endorsed check from a third-party 2.4% 40.1% $5.00 

*The median fee for cashing a $300 check based on application of fixed-fee and face value percentages provided by 

banks that charge a fee for cashing checks for non-customers 
 134 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Almost all (95.5 percent) banks cash on-us business checks for non-customers. 

QIVA. Figure 1. Do you cash business checks drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 30 329 4.5

 Yes 648 7026 95.5

 Total 678 7354 100.0

Missing System 7 86

Total 685 7440

There are differences between regions, with 88.9 percent of banks in the Mid-Atlantic cashing on-us 

business checks for non-customers, compared with 100 percent of West North Central banks 

cashing business checks. 

QIVA. Figure 2. Region 

Do you cash business checks drawn on your bank for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 17 62 58 58 41 34 55 3

 % 3.8% 11.1% 6.8% 8.9% 3.5% 2.6% 11.1% .8%

Yes Count 429 492 801 597 1122 1281 1406 439 458

 % 96.2% 88.9% 93.2% 91.1% 96.5% 97.4% 100.0% 88.9% 99.2%

Total Count 446 553 860 655 1163 1316 1406 494 461

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

There are no differences in policies by tier for cashing business checks drawn on the bank for noncustomers. 

Of the banks that cash on-us business checks for non-customers, 12.9 percent cash these checks for 

a fee. 

QIVA. Figure 3. Do you charge a fee to cash on-us business checks? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 521 5828 87.1

 Yes 99 866 12.9

 Total 620 6694 100.0

Missing System 28 332

Total 648 7026
 135 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences in policies among regions for banks charging fees to cash on-us business 

checks for non-customers, specifically between the East North Central region (23.7 percent) and the 

New England (0.8 percent) and South Atlantic (6.3 percent) regions. 

QIVA. Figure 4. Region 

Do you charge a fee to cash on-us business checks? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 411 411 709 507 985 955 1118 353 378

 % 99.2% 91.8% 93.7% 84.9% 94.1% 76.3% 84.4% 85.9% 85.1%

Yes Count 3 37 48 90 62 296 206 58 66

 % .8% 8.2% 6.3% 15.1% 5.9% 23.7% 15.6% 14.1% 14.9%

Total Count 415 447 757 597 1047 1250 1324 412 444

 % 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 charging fees to cash on-us business checks for noncustomers. About two-thirds (66.7 percent) of Tier 1 banks charge fees, compared with 19.3 percent 

of Tier 2 and 12.2 percent of Tier 3 banks. 

QIVA. Figure 5. Tier 

Do you charge a fee to cash on-us 

business checks? 

 Tier 1 Tier 2 Tier 3 

No Count 8 406 5414

 % 33.3% 80.7% 87.8%

Yes Count 17 97 752

 % 66.7% 19.3% 12.2%

Total Count 25 503 6166

 % 100.0% 100.0% 100.0%

Almost all (96.4 percent) banks cash on-us business checks for non-customers. 

QIVA. Figure 6. Do you cash personal checks drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 24 267 3.6

 Yes 653 7084 96.4

 Total 677 7351 100.0

Missing System 8 89

Total 685 7440
 136 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference between regions for cashing on-us personal checks for non-customers. All of 

the West North Central banks have this policy, compared with 86.6 percent of Mid Atlantic banks. 

QIVA. Figure 7. Region 

Do you cash personal checks drawn on your bank for non-customers? 

 New 

England 

Mid 

Atlantic 

South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 14 75 31 44 14 31 41 17

 % 3.1% 13.4% 3.6% 6.9% 1.2% 2.3% 8.3% 3.7%

Yes Count 432 488 825 597 1150 1285 1410 453 444

 % 96.9% 86.6% 96.4% 93.1% 98.8% 97.7% 100.0% 91.7% 96.3%

Total Count 446 563 856 642 1163 1316 1410 494 461

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

There is no difference between tiers for banks that cash on-us personal checks for non-customers. 

Among banks that cash personal checks drawn on their bank, 12.9 percent charge non-customers a 

fee to cash these checks. 

QIVA. Figure 8. Do you charge a fee to cash personal checks drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 535 5828 87.1

 Yes 88 866 12.9

 Total 623 6694 100.0

Missing System 30 332

Total 653 7026

There are differences for charging fees to cash personal checks for non-customers among regions. 

The East North Central region (24.4 percent) is different from the New England (0.8 percent), 

South Atlantic (1.9 percent), and West South Central (4.1 percent) regions. 

QIVA. Figure 9. Region 

Do you charge a fee to cash personal checks drawn on your bank? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 415 412 766 507 1030 948 1105 367 378

 % 99.2% 92.8% 98.1% 84.9% 95.9% 75.6% 84.3% 86.3% 87.8%

Yes Count 3 32 15 90 44 306 205 58 52

 % .8% 7.2% 1.9% 15.1% 4.1% 24.4% 15.7% 13.7% 12.2%

Total Count 418 444 781 597 1074 1254 1311 425 431

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 137 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for charging fees to cash personal checks drawn on their bank for 

non-customers. Tier 1 (50.0 percent) is different from Tier 2 (16.6 percent) and Tier 3 (11.5 

percent). 

QIVA. Figure 10. Tier 

Do you charge a fee to cash personal 

checks drawn on your bank? Tier 1 Tier 2 Tier 3 

No Count 13 420 5496

 % 50.0% 83.4% 88.5%

Yes Count 13 83 711

 % 50.0% 16.6% 11.5%

Total Count 25 503 6207

 % 100.0% 100.0% 100.0%

About a quarter (22.7 percent) of banks will cash local business checks that are not drawn on their 

bank for non-customers. 

QIVA. Figure 11. Do you cash business checks not drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 536 5634 77.3

 Yes 136 1658 22.7

 Total 672 7293 100.0

Missing System 13 147

Total 685 7440

There are differences for cashing business checks not drawn on the bank for non-customers by 

region. The West North Central region (39.4 percent) has more banks cashing these checks than the 

Pacific (6.2 percent), Mid Atlantic (6.3 percent), South Atlantic (9.3 percent), Mountain (11.4 

percent), and New England (10.0 percent) regions. 

QIVA. Figure 12. Region 

Do you cash business checks not drawn on your bank for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 401 528 767 449 825 953 853 425 433

 % 90.0% 93.7% 90.7% 71.5% 71.1% 73.2% 60.6% 88.6% 93.8%

Yes Count 44 35 79 179 335 349 554 55 28

 % 10.0% 6.3% 9.3% 28.5% 28.9% 26.8% 39.4% 11.4% 6.2%

Total Count 446 563 846 628 1160 1302 1406 480 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 138 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference for cashing business checks not drawn on the bank for non-customers by tier. 

Twice as many Tier 3 (23.8 percent) and cash these checks than do Tier 2 (10.3 percent) banks. 

QIVA. Figure 13. Tier 

Do you cash business checks not drawn on 

your bank for non-customers? Tier 1 Tier 2 Tier 3 

No Count 22 486 5127

 % 87.5% 89.7% 76.2%

Yes Count 3 55 1600

 % 12.5% 10.3% 23.8%

Total Count 25 541 6727

 % 100.0% 100.0% 100.0%

Among banks that cash business checks, 92.2 percent charge a fee for non-customers to cash local 

business checks not drawn on their bank. 

QIVA. Figure 14. Do you charge a fee to cash business checks not drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 10 127 7.8

 Yes 122 1487 92.2

 Total 132 1614 100.0

Missing System 4 44

Total 136 1658

There is little difference for charging fees to cash business checks not drawn on the bank for noncustomers by region. 

There is little difference between tiers for charging fees to cash business checks not drawn on the 

bank for non-customers. 

About a third (31.9 percent) of banks will cash local payroll checks for non-customers.

QIVA. Figure 15. Do you cash payroll checks not drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 472 4963 68.1

 Yes 201 2323 31.9

 Total 673 7286 100.0

Missing System 12 154

Total 685 7440
 139 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences for cashing payroll checks for non-customers by region. The South Atlantic 

region (13.1 percent) is different from the West South Central (43.8 percent) and West North 

Central (48.4 percent) regions. The Pacific region (6.9 percent) is different from the West North 

Central (48.4 percent), West South Central (43.8 percent), and East North Central (40.6 percent) 

regions. 

QIVA. Figure 16. Region 

Do you cash payroll checks not drawn on your bank for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 356 467 735 473 654 773 726 350 430

 % 79.8% 84.3% 86.9% 73.7% 56.2% 59.4% 51.6% 75.1% 93.1%

Yes Count 90 87 111 169 510 529 680 116 32

 % 20.2% 15.7% 13.1% 26.3% 43.8% 40.6% 48.4% 24.9% 6.9%

Total Count 446 553 846 642 1163 1302 1406 466 461

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

There are small differences for cashing payroll checks not drawn on the bank for non-customers by 

tier. More that one-quarter (29.2 percent) of Tier 1 banks cash payroll checks, compared with 20.9 

percent of Tier 2 and 32.8 percent of Tier 3. 

QIVA. Figure 17. Tier 

Do you cash payroll checks not drawn on your 

bank for non-customers? Tier 1 Tier 2 Tier 3 

No Count 18 434 4512

 % 70.8% 79.1% 67.2%

Yes Count 7 114 2201

 % 29.2% 20.9% 32.8%

Total Count 25 548 6713

 % 100.0% 100.0% 100.0%

Among banks that cash payroll checks not drawn on the bank for non-customers, 86.9 percent 

charge a fee to cash them for non-customers. 

QIVA. Figure 18. Do you charge a fee to cash payroll checks not drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 26 294 13.1

 Yes 167 1952 86.9

 Total 193 2247 100.0

Missing System 8 76

Total 201 2323

There is little difference for charging a fee for payroll checks for non-customers by region or tier.
 140 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Only 6.4 percent of banks will cash a personal check not drawn on their bank for non-customers. 

QIVA. Figure 19. Do you cash personal checks not drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 634 6806 93.6

 Yes 37 463 6.4

 Total 671 7269 100.0

Missing System 14 171

Total 685 7440

There are differences for cashing personal checks not drawn on the bank for non-customers among 

regions. The West North Central region (14.7 percent) is different from the South Atlantic region 

(1.6 percent) and Mountain region (0 percent). 

QIVA. Figure 20. Region 

Do you cash personal checks not drawn on your bank for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 429 563 846 614 1047 1206 1188 466 447

 % 96.9% 99.4% 98.4% 97.8% 92.2% 91.7% 85.3% 100.0% 96.8%

Yes Count 14 3 14 14 89 109 205 15

 % 3.1% .6% 1.6% 2.2% 7.8% 8.3% 14.7% 3.2%

Total Count 442 567 860 628 1136 1316 1393 466 461

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

There is no difference for cashing personal checks not drawn on the bank for non-customers by tier. 

Among banks that cash personal checks not drawn on the banks for non-customers, 93.9 percent 

charge a fee. 

QIVA. Figure 21. Do you charge a fee to cash personal checks not drawn on your bank for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 2 27 6.1

 Yes 33 418 93.9

 Total 35 445 100.0

Missing System 2 17

Total 37 463
 141 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are slight differences among regions for banks that charge a fee to cash personal checks not 

drawn on the bank for non-customers, but there are not enough cases to draw further conclusions. 

QIVA. Figure 22. Region 

Do you charge a fee to cash personal checks not drawn on your bank for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Pacific 

No Count 0 0 14 0 0 14 0 0

 % .0% .0% 100.0% .0% .0% 12.5% .0% .0%

Yes Count 14 3 0 14 86 96 191 15

 % 100.0% 100.0% .0% 100.0% 100.0% 87.5% 100.0% 100.0%

Total Count 14 3 14 14 86 109 191 15

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

There is little difference between tiers for banks that charge a fee to cash personal checks not drawn 

on the bank for non-customers. 

Over half (58.1 percent) of the banks will cash government checks for non-customers. 

QIVA. Figure 23. Do you cash government checks for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 306 3066 41.9

 Yes 368 4244 58.1

 Total 674 7310 100.0

Missing System 11 130

Total 685 7440

There are differences for cashing government checks for non-customers by region. The West North 

Central region has the largest percentage (78.1 percent) of banks that cash government checks, 

compared with 28.2 percent in the Mid-Atlantic region. 

QIVA. Figure 24. Region 

Do you cash government checks for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 140 395 560 264 305 568 308 220 306

 % 31.5% 71.8% 65.1% 40.3% 26.2% 44.1% 21.9% 45.8% 66.3%

Yes Count 305 155 300 391 858 720 1098 260 155

 % 68.5% 28.2% 34.9% 59.7% 73.8% 55.9% 78.1% 54.2% 33.7%

Total Count 446 550 860 655 1163 1288 1406 480 461

 % 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 cashing government checks for non-customers. Tier 2 (42.0 

percent) is different from Tier 3 (59.4 percent). 
 142 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

QIVA. Figure 25. Tier 

Do you cash government checks for noncustomers? Tier 1 Tier 2 Tier 3 

No Count 16 316 2734

 % 62.5% 58.0% 40.6%

Yes Count 9 229 4006

 % 37.5% 42.0% 59.4%

Total Count 25 544 6740

 % 100.0% 100.0% 100.0%

Of the banks that cash government checks for non-customers, 58.2 percent charge a fee. 

QIVA. Figure 26. Do you charge a fee to cash government checks for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 144 1650 41.8

 Yes 199 2293 58.2

 Total 343 3943 100.0

Missing System 25 301

Total 368 4244

There are differences among regions for banks that charge a fee to cash government checks for noncustomers. New England (16.1 percent) is different from East South Central (57.4 percent), 

Mountain (56.6 percent), East North Central (61.2 percent), West North Central (61.5 percent), 

West South Central (63.2 percent), Pacific (63.7 percent), and South Atlantic (70.3 percent). 

QIVA. Figure 27. Region 

Do you charge a fee to cash government checks for non-customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 219 83 89 161 291 253 390 113 51

 % 83.9% 56.1% 29.7% 42.6% 36.8% 38.8% 38.5% 43.4% 36.3%

Yes Count 42 65 211 217 499 399 623 147 90

 % 16.1% 43.9% 70.3% 57.4% 63.2% 61.2% 61.5% 56.6% 63.7%

Total Count 261 148 300 377 790 652 1013 260 142

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 143 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is no difference between tiers for banks that charge a fee to cash government checks for noncustomers. 

Only 2.4 percent of banks will cash double-endorsed checks for non-customers. 

QIVA. Figure 28. Do you cash double endorsed checks for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 650 7076 97.6

 Yes 18 172 2.4

 Total 668 7248 100.0

Missing System 17 192

Total 685 7440

There are no differences for cashing double-endorsed checks for non-customers by region or tier. 

Of the banks that cash double-endorsed checks for non-customers, 40.1 percent charge a fee. 

QIVA. Figure 29. Do you charge a fee to cash double endorsed checks for non-customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 11 87 59.9

 Yes 5 58 40.1

 Total 16 145 100.0

Missing System 2 27

Total 18 172

There is no difference between regions or tiers for banks that charge a fee to cash double-endorsed 

checks for non-customers. 
 144 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences between urban and rural banks for all types of checks cashed for noncustomers, except for double-endorsed checks. Overall, a higher percentage of rural banks will cash 

checks for non-customers than urban banks. 

QIVA. Figure 30. Urban/Rural 

Types of Checks Cashed for Non-Customers 

Rural HQ Urban HQ 

 

 

On-us 

Business 

Checks 

On-us 

Personal 

Checks 

Local 

Business 

Checks (Not 

drawn on the 

bank) 

On-us 

Business 

Checks 

On-us 

Personal 

Checks 

Local 

Business 

Checks (Not 

drawn on the 

bank) 

No Count 96 41 2431 233 226 3203

 % 2.5% 1.1% 63.1% 6.7% 6.5% 93.0%

Yes Count 3809 3847 1419 3217 3237 239

 % 97.5% 98.9% 36.9% 93.3% 93.5% 7.0%

Total Count 3905 3888 3850 3450 3463 3443

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

QIVA. Figure 31. Urban/Rural 

Types of Checks Cashed for Non-Customers 

Rural HQ Urban HQ 

 

 

Local 

Payroll 

Checks 

Local 

Personal 

Checks 

(Not 

drawn 

on the 

bank) 

Government 

Checks 

Double 

Endorsed 

Checks 

Local 

Payroll 

Checks 

Local 

Personal 

Checks 

(Not drawn 

on the 

bank) 

Government 

Checks 

Double 

Endorsed 

Checks 

No Count 1915 3395 759 3723 3048 3411 2307 3352

 % 49.9% 88.8% 19.5% 97.4% 88.4% 99.0% 67.5% 97.9%

Yes Count 1921 427 3132 99 402 35 1112 73

 % 50.1% 11.2% 80.5% 2.6% 11.6% 1.0% 32.5% 2.1%

Total Count 3836 3823 3891 3823 3450 3446 3419 3426

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 145 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference between urban and rural banks for banks that charge a fee to cash business 

checks drawn on the bank for non-customers. For rural banks, 11.6 percent of the banks charge a 

fee, compared with 14.5 percent of urban banks. 

QIVA. Figure 32. Urban/Rural 

Do you charge a fee to cash business 

checks drawn on the bank for noncustomers? Rural HQ Urban HQ 

No Count 3163 2666

 % 88.4% 85.5%

Yes Count 414 452

 % 11.6% 14.5%

Total Count 3577 3117

 % 100.0% 100.0%

There is a difference between urban and rural banks for banks that charge a fee to cash government 

checks for non-customers. About two-thirds (62.4 percent) of rural banks charge a fee, compared 

with 46.0 percent of urban banks. 

QIVA. Figure 33. Urban/Rural 

Do you charge a fee to cash 

government checks for noncustomers? Rural HQ Urban HQ 

No Count 1094 556

 % 37.6% 54.0%

Yes Count 1819 474

 % 62.4% 46.0%

Total Count 2913 1030

 % 100.0% 100.0%

Question IVA-1. Please describe the bank’s concerns which may have led to 

limitations on transactions for non-customers. 

Banks’ open-ended responses identify several reasons why they are reluctant to cash checks for noncustomers. Among the open-ended responses, 513 banks explain that without an established 

customer relationship, they must be cautious when cashing checks for non-customers due to fraud 

risks. Banks state that they do not have a foolproof way to verify identity and financial information 

when encountering a non-customer for the first time. Some banks report that they do cash checks 

for non-customers for a fee, in the hope of building customer relationships in the future. 

Fraudulent activity and the increased risk of bank losses are reported by 315 of the 513 banks to be 

their biggest concern with non-customer transactions. The different types of fraud that concern 

banks include: identity theft, forged checks, counterfeit checks, and stolen checks. 

Collectability concerns are mentioned in 140 instances. Collectability issues include returned checks, 

NSF, stop payments, and verification of funds. 
 146 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

The third most frequently cited concern is the lack of information about non-customers needed for 

CIP, AML, KYC, and Patriot Act compliance, which is mentioned in 138 instances. BSA/AML 

concerns (78) along with OFAC regulatory concerns (33) are mentioned a total of 111 times. 

Issues with non-customers having no identification or presenting fraudulent identification can 

challenge banks in their efforts to serve individuals who have no prior relationship with financial 

institutions. 

A commonly cited concern is limited recourse for non-customers to collect funds from bad or 

fraudulent checks or to validate the authenticity of addresses. Ninety-five banks indicate that this is 

one of the reasons for limiting service offerings to non-customers. Once a non-customer completes 

the transaction, banks indicate they have little power to recover money in the case of fraud. 

Question IVB. Does the training provided to the bank’s tellers and other 

customer service representatives include strategies for reaching out to 

unbanked or underbanked consumers (e.g., encouraging individuals who do 

not have a transaction or savings account who are cashing paychecks to 

open an account)? Yes No 

Over two-thirds (68.6 percent) of banks provide teller and customer service training that include 

strategies for reaching out to un/underbanked consumers. 

QIVB. Figure 1. Does training include strategies for reaching out to the unbanked? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 186 2183 31.4

 Yes 457 4767 68.6

 Total 643 6950 100.0

Missing System 44 489

Total 687 7440

There are few differences among regions for training that includes strategies to reach out to the 

unbanked. 
 147 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for training that includes strategies to reach out to the unbanked. 

Tiers 1 and 3 are different from each other, with 95.8 percent of Tier 1 banks reporting strategies 

and training to reach out to the un/underbanked, compared with 67.8 percent of Tier 3 banks. 

QIVB. Figure 2. Tier 

Does training include strategies for reaching out to 

the unbanked? Tier 1 Tier 2 Tier 3 

No Count 1 118 2064

 % 4.2% 23.0% 32.2%

Yes Count 24 395 4348

 % 95.8% 77.0% 67.8%

Total Count 25 513 6412

 % 100.0% 100.0% 100.0%

There is little difference between urban and rural banks for training that includes strategies to reach 

out to the unbanked. 

Question IVB-1. If yes, please describe.

Overall, banks report that teller training is a simple and effective strategy for reaching out to 

unbanked and/or underbanked consumers. If a non-customer enters a bank to use a particular 

financial service, the teller is instructed to explain the benefits of opening an account and building a 

relationship with the bank. Sometimes, providing encouragement and explaining why accountopening can be more economical and beneficial are sufficient to convert a non-customer into a 

customer. 

 Over two-thirds (297 of 426) of the reporting banks report that their main strategy for reaching 

out to the unbanked and underbanked consumer is by encouraging non-customers to open 

accounts and offering products that fit their needs. 

 About one-sixth of the reporting banks (75 of 426) focus on cross-selling strategies in which 

tellers are trained to offer original account openings and other products and services to the 

underbanked. 

 Among the reporting banks, relatively few (22 of 426) have incentive programs for tellers who 

convert non-customers into customers. 

 A smaller number (16 of 426) of banks report that they train tellers to refer non-customers 

directly to a customer service representative or personal banker. 

 One bank reported a program to evaluate the effectiveness of teller training. Individuals come 

into the bank posing as non-customers and present scenarios to test if the correct banking 

options are offered. 
 148 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Identification Required for Non-Customers to 

Cash Checks 

Bank policies for non-customer check cashing generally require that a government-issued ID be 

presented as a primary form of identification. However, other forms of ID can be used as secondary 

sources of identification. 

The most commonly accepted form of primary identification for check cashing is a driver’s license, 

followed by state and military identifications. A housing lease is the least commonly accepted form 

of identification; most banks (83 percent) will not accept a housing lease as sufficient identification 

to cash a check. 

Question IVC. What forms of consumer identification or validation does the 

bank rely on for individuals who do not have an account relationship to cash 

a check? 

Identification Forms 

Primary: 

Sufficient alone 

by itself 

Secondary: Insufficient 

alone but acceptable 

with another secondary 

ID 

Not Accepted as 

ID for 

check cashing 

Driver’s license 91.9% 7.7% 0.5% 

State-issued photo ID 85.7% 12.7% 1.6% 

Passport (US. or foreign) 81.1% 15.1% 3.7% 

Military ID 75.8% 20.3% 3.9% 

Student/school ID card 24.4% 49.5% 26.1% 

Social Security number 3.6% 43.7% 52.7% 

Matrícula Consular 20.5% 17.7% 61.9% 

Individual Taxpayer 

Identification Number (ITIN) 

1.3% 30.3% 68.4% 

Utility bills/payments 0.6% 27.9% 71.5% 

Employer letters/pay stub 2.5% 24.3% 73.2% 

Housing lease 1.1% 16.3% 82.6% 

Other: 22.9% 45.8% 31.3% 

Almost all (91.9 percent) banks accept driver’s licenses as a primary form of identification when 

cashing checks for non-customers. 
 149 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

QIVC. Figure 1. Does the bank accept a driver’s license as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 4 34 .5

 Primary ID 594 6509 91.9

 Secondary ID 54 542 7.7

 Total 652 7085 100.0

Missing System 33 354

Total 685 7440

There are no differences among regions for banks accepting driver’s licenses as a form of 

identification. 

There is a difference between tiers for banks accepting a driver’s license as a form of identification. 

Tier 1 (77.3 percent as primary, 22.7 percent as secondary) is different from Tier 2 (90.1 percent and 

8.6 percent, respectively) and Tier 3 (92.1 percent and 7.5 percent, respectively). 

QIVC. Figure 2. Tier 

Does the bank accept a driver’s license as a 

form of ID to cash a check for a non-customer? 

 Tier 1 Tier 2 Tier 3 

Not accepted Count 0 7 27

 % .0% 1.3% .4%

Primary ID Count 18 475 6016

 % 77.3% 90.1% 92.1%

Secondary ID Count 5 45 492

 % 22.7% 8.6% 7.5%

Total Count 23 527 6535

 % 100.0% 100.0% 100.0%

There is not a difference between urban and rural banks for banks accepting driver’s licenses as a 

form of identification. 

Most banks (85.7 percent) accept state IDs as a primary form of identification for non-customers 

when cashing checks. 

QIVC. Figure 3. Does the bank accept a state ID as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 10 116 1.6

 Primary ID 553 6040 85.7

 Secondary ID 85 895 12.7

 Total 648 7051 100.0

Missing System 37 389

Total 685 7440
 150 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are no differences among tiers or regions for banks accepting a state identification as a form 

of ID. 

There is not a difference between urban and rural banks for banks accepting a state identification as 

a form of ID. 

Only 3.6 percent of banks accept Social Security numbers as a primary form of identification for 

non-customers when cashing checks. 

QIVC. Figure 4. Does the bank accept a social security number as a form of ID to cash a check for a noncustomer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 324 3399 52.7

 Primary ID 18 233 3.6

 Secondary ID 252 2816 43.7

 Total 594 6448 100.0

Missing System 91 992

Total 685 7440

There are no differences among regions for banks accepting a Social Security number as a form of 

identification for non-customers. 

There is a difference between tiers for banks accepting a Social Security number as a form of 

identification. A larger percentage (81.0 percent) of Tier 1 banks do not accept a Social Security 

number, compared with 58.0 percent and 52.2 percent of Tiers 2 and 3, respectively. 

QIVC. Figure 5. Tier 

Does the bank accept a Social Security number 

as a form of ID to cash a check for a noncustomer? Tier 1 Tier 2 Tier 3 

Not accepted Count 18 277 3104

 % 81.0% 58.0% 52.2%

Primary ID Count 1 0 232

 % 4.8% .0% 3.9%

Secondary ID Count 3 201 2611

 % 14.3% 42.0% 43.9%

Total Count 22 479 5947

 % 100.0% 100.0% 100.0%

There is not a difference between urban and rural banks for banks accepting a Social Security 

number as a form of identification for non-customers. 
 151 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Most banks (81.1 percent) accept U.S. and foreign passports as a primary form of identification for 

non-customers when cashing checks. 

QIVC. Figure 6. Does the bank accept a passport as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 22 260 3.7

 Primary ID 527 5636 81.1

 Secondary ID 91 1051 15.1

 Total 640 6946 100.0

Missing System 45 493

Total 685 7440

There are minimal differences between regions or tiers for banks accepting a passport as a form of 

identification for non-customers. 

There is not a difference between urban and rural banks for banks accepting passports as a form of 

identification for non-customers. 

Three quarters (75.8 percent) of banks accept military ID as a primary form of identification for 

non-customers when cashing checks. 

QIVC. Figure 7. Does the bank accept a Military ID as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 22 270 3.9

 Primary ID 484 5208 75.8

 Secondary ID 128 1391 20.3

 Total 634 6870 100.0

Missing System 51 570

Total 685 7440

There are no differences among regions for banks accepting military identification for noncustomers. 
 152 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for banks accepting military identification. Over half (59.1 

percent) of Tier 1 banks accept a military ID as primary identification, compared with 81.9 percent 

of Tier 2 and 75.4 percent of Tier 3. 

QIVC. Figure 8. Tier 

Does the bank accept a military ID as a form of 

ID to cash a check for a non-customer? 

 Tier 1 Tier 2 Tier 3 

Not accepted Count 0 10 260

 % .0% 2.0% 4.1%

Primary ID Count 14 423 4772

 % 59.1% 81.9% 75.4%

Secondary ID Count 9 83 1299

 % 40.9% 16.1% 20.5%

Total Count 23 517 6330

 % 100.0% 100.0% 100.0%

There is not a difference between urban and rural banks for banks accepting military identification 

for non-customers. 

About a quarter (24.4 percent) of banks accept student IDs as a primary form of identification for 

non-customers when cashing checks. 

QIVC. Figure 9. Does the bank accept a student ID as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 161 1717 26.1

 Primary ID 140 1611 24.4

 Secondary ID 308 3261 49.5

 Total 609 6589 100.0

Missing System 76 851

Total 685 7440

There are no differences among regions or tiers for banks accepting student identification for noncustomers. 

There is not a difference between urban and rural banks for banks accepting a student identification 

card for non-customers. 
 153 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Only 2.5 percent of banks will accept a letter from an employer as ID to cash checks for noncustomers.

QIVC. Figure 10. Does the bank accept an employer letter as a form of ID to cash a check for a noncustomer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 435 4582 73.2

 Primary ID 12 154 2.5

 Secondary ID 136 1520 24.3

 Total 583 6257 100.0

Missing System 102 1183

Total 685 7440

There are no differences among regions or tiers for banks accepting an employer letter as a form of 

identification for non-customers. 

There is not a difference between urban and rural banks for banks accepting an employer letter as a 

form of identification for non-customers. 

Less than one-quarter (20.5 percent) of banks accept Matrícula Consular cards as a primary form of 

identification for non-customers when cashing checks. 

QIVC. Figure 11. Does the bank accept a Matrícula Consular card as a form of ID to cash a check for a noncustomer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 323 3700 61.9

 Primary ID 131 1224 20.5

 Secondary ID 109 1057 17.7

 Total 563 5981 100.0

Missing System 122 1459

Total 685 7440
 154 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences among regions for banks accepting a Matrícula Consular card as a primary or 

secondary form of identification for non-customers. Acceptance of the Matrícula Consular is highest 

in the Pacific (68.2 percent) and West South Central (55.1 percent) regions and is lowest in the 

Mountain (22.8 percent) and Mid Atlantic (24.2 percent) regions. 

QIVC. Figure 12. Region 

Does the bank accept a Matricula Consular Card as a form of ID to cash a check for a noncustomer? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

Not 

accepted 

Count 227 354 459 375 424 677 725 328 130

 % 67.5% 75.8% 63.9% 73.2% 44.9% 62.4% 67.0% 77.2% 31.8%

Primary ID Count 41 59 118 34 339 222 192 66 152

 % 12.2% 12.7% 16.5% 6.7% 35.9% 20.5% 17.7% 15.6% 37.0%

Secondary 

ID 

Count 68 54 142 103 181 186 165 31 128

 % 20.3% 11.5% 19.7% 20.1% 19.2% 17.1% 15.3% 7.2% 31.2%

Total Count 336 467 719 512 944 1085 1082 425 410

 % 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 accepting Matrícula Consular card as a form of 

identification for non-customers. Specifically, a greater percentage of Tier 2 banks accept it (54.6 

percent) compared with Tier 3 banks (36.5 percent). 

QIVC. Figure 13. Tier 

Does the bank accept a Matrícula Consular 

Card as a form of ID to cash a check for a noncustomer? Tier 1 Tier 2 Tier 3 

Not accepted Count 5 222 3473

 % 22.7% 45.4% 63.5%

Primary ID Count 11 146 1066

 % 50.0% 29.8% 19.5%

Secondary ID Count 6 121 930

 % 27.3% 24.8% 17.0%

Total Count 23 489 5469

 % 100.0% 100.0% 100.0%

There is little difference between urban and rural banks for banks accepting a Matrícula Consular 

card as a form of identification for non-customers. 
 155 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Only 0.6 percent of banks accept utility bills as a primary form of identification for non-customers 

when cashing checks. 

QIVC. Figure 14. Does the bank accept a utility bill as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 417 4535 71.5

 Primary ID 3 41 .6

 Secondary ID 167 1766 27.9

 Total 587 6342 100.0

Missing System 98 1098

Total 685 7440

There are no differences among regions or tiers for banks not accepting a utility bill as a form of ID 

for non-customers. 

There is not a difference between urban and rural banks for banks not accepting a utility bill as a 

form of ID for non-customers.

A small percentage (1.1 percent) of banks accept housing leases as a primary form of identification 

for non-customers when cashing checks. 

QIVC. Figure 15. Does the bank accept a housing lease as a form of ID to cash a check for a noncustomer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 479 5125 82.6

 Primary ID 5 68 1.1

 Secondary ID 92 1008 16.3

 Total 576 6202 100.0

Missing System 109 1238

Total 685 7440

There are no differences among regions or tiers for banks accepting a housing lease as a form of 

identification for non-customers.

There is not a difference between urban and rural banks for banks accepting a housing lease as a 

form of identification for non-customers. 
 156 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Only 1.3 percent of banks accept Individual Taxpayer Identification Numbers (ITINs) as a primary 

form of identification for non-customers when cashing checks, and 30.3 percent of banks accept it 

as a secondary form of ID. 

QIVC. Figure 16. Does the bank accept an ITIN number as a form of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 396 4281 68.4

 Primary ID 10 83 1.3

 Secondary ID 176 1899 30.3

 Total 582 6263 100.0

Missing System 103 1176

Total 685 7440

There are no differences among regions or tiers for banks accepting an ITIN as a form of 

identification for non-customers. 

There is not a difference between urban and rural banks for banks accepting an ITIN as a form of 

identification for non-customers. 

Under a quarter (22.9 percent) of banks report that they will accept other forms of identification for 

check cashing for a non-customer. 

QIVC. Figure 17. Does the bank accept any other forms of ID to cash a check for a non-customer? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid Not accepted 31 299 31.3

 Primary ID 35 219 22.9

 Secondary ID 45 437 45.8

 Total 111 955 100.0

Missing System 574 6484

Total 685 7440

An alien identification or green card is mentioned 27 times under “other” forms of ID that are 

accepted. Out of the 27 mentions, 18 banks report accepting it as primary identification, and 12 

accept it as secondary identification. 

Thirteen banks identify credit cards as acceptable identification, with one bank indicating that it 

could be used as primary ID in certain circumstances, and nine banks reporting that credit cards 

could be used as secondary identification. 

Tribal identifications are mentioned nine times. Seven banks indicate that tribal identifications are an 

acceptable primary identification, and one bank accepts it as secondary identification. 
 157 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Question IVC-1. Does the bank issue check cashing cards to individuals who 

do not have an account relationship? Yes No 

Two percent of banks offer check cashing cards to individuals who do not have an account 

relationship with the bank. 

QIVC-1. Figure 1. Do you offer check cashing cards? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 656 7122 98.0

 Yes 14 146 2.0

 Total 670 7268 100.0

Missing System 15 172

Total 685 7440

There are differences among regions for banks that offer check cashing cards. New England (12.7 

percent) is different from the South Atlantic, East South Central, Mountain, and Pacific regions (all 

0.0 percent). 

QIVC-1. Figure 2. Region 

Do you offer check cashing cards? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 377 562 860 652 1115 1246 1383 466 460

 % 87.3% 99.8% 100.0% 100.0% 94.8% 98.8% 99.0% 100.0% 100.0%

Yes Count 55 1 0 0 62 15 14 0 0

 % 12.7% .2% .0% .0% 5.2% 1.2% 1.0% .0% .0%

Total Count 432 563 860 652 1177 1261 1396 466 460

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

There are few differences among tiers or regions for banks that offer check cashing cards to 

individuals without an account relationship with the bank. 

There is little difference between urban and rural banks for banks that offer check cashing cards to 

individuals without an account relationship with the bank. 
 158 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Question IVC-2. Which of the following techniques or technology does your 

bank use to verify the identity of individuals who do not have an account 

relationship for check cashing? 

 Fingerprinting Biometrics 

 None Other: _____

Fingerprinting and biometric technology are not commonly used by banks to verify the identity of 

individuals who do not have a relationship with the bank to cash checks. Only 17.0 percent of banks 

use fingerprinting, and 0.2 percent use biometrics. 

QIVC-2. Figure 1. Fingerprinting 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 519 5870 83.0

 Yes 135 1199 17.0

 Total 654 7069 100.0

Missing System 31 370 

Total 685 7440 

QIVC-2. Figure 2. Biometrics 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 653 7053 99.8

 Yes 2 17 .2

 Total 655 7070 100.0

Missing System 30 369 

Total 685 7440 

QIVC-2. Figure 3. None 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 282 2832 40.1

 Yes 373 4239 59.9

 Total 655 7070 100.0

Missing System 30 369 

Total 685 7440 

QIVC-2. Figure 4. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 522 5624 79.7

 Yes 132 1433 20.3

 Total 654 7057 100.0

Missing System 31 383 

Total 685 7440 

Among the banks reporting “other” techniques or technologies to verify the identity of individuals 

who do not have an account relationship for check cashing, 88 reported asking for one to two forms 

of identification and 17 reported conducting an OFAC check. 

There are differences among regions for banks that use fingerprinting and banks that do not use 

anything to verify the identity of individuals who do not have an account relationship for check 

cashing. 
 159 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences in the use of fingerprinting between the Mid Atlantic region (0.2 percent) and 

New England (0.2 percent) compared with the West South Central (23.6 percent) and East North 

Central (20.3 percent) regions. 

QIVC-2. Figure 5. Region: Fingerprinting 

Fingerprinting 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 417 521 652 557 855 1002 1122 397 347

 % 99.8% 99.8% 81.0% 86.9% 76.4% 79.7% 81.3% 82.8% 77.5%

Yes Count 1 1 153 84 264 256 258 82 101

 % .2% .2% 19.0% 13.1% 23.6% 20.3% 18.7% 17.2% 22.5%

Total Count 418 522 805 642 1119 1257 1379 479 448

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

For “none,” there are differences between the West South Central (52.3 percent), East North 

Central (52.7 percent), and New England (82.6 percent) regions. 

QIVC-2. Figure 6. Region: None 

None 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 73 200 332 211 534 595 541 159 187

 % 17.4% 38.2% 41.2% 32.9% 47.7% 47.3% 39.3% 33.0% 41.8%

Yes Count 345 323 473 431 585 662 838 321 260

 % 82.6% 61.8% 58.8% 67.1% 52.3% 52.7% 60.7% 67.0% 58.2%

Total Count 418 522 805 642 1119 1257 1379 480 448

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

The use of fingerprinting by banks to verify identification for individuals who do not have account 

relationships differs by tier. Tier 1 banks (43.5 percent) use fingerprinting more than Tier 2 (32.9 

percent) and Tier 3 (15.5 percent) banks. 

QIVC-2. Figure 7. Tier: Fingerprinting/Biometrics 

Techniques Used for Verifying Non-Customer Identification 

Tier 1 Tier 2 Tier 3 

 

 Fingerprinting Biometrics Fingerprinting Biometrics Fingerprinting Biometrics 

No Count 14 25 361 534 5496 6494

 % 56.5% 100.0% 67.1% 99.4% 84.5% 99.8%

Yes Count 10 0 177 3 1012 14

 % 43.5% .0% 32.9% .6% 15.5% .2%

Total Count 24 25 538 538 6508 6508

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 160 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

For banks that report no use of technology, there is a difference between Tier 2 (46.5 percent) and 

Tier 3 (61.1 percent). 

QIVC-2. Figure 8. Tier: None/Other 

Techniques Used for Verifying Non-Customer Identification 

Tier 1 Tier 2 Tier 3 

 

 None Other None Other None Other 

No Count 15 23 288 420 2529 5182 

 % 58.3% 91.7% 53.5% 78.1% 38.9% 79.8% 

Yes Count 10 2 250 118 3979 1313 

 % 41.7% 8.3% 46.5% 21.9% 61.1% 20.2% 

Total Count 25 25 538 538 6508 6494 

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

There are differences between urban and rural banks that use fingerprinting and those that do not 

use anything to verify non-customer identity for check cashing. One-fifth (20.7 percent) of urban 

banks use fingerprinting, compared with 13.7 percent of rural banks. Almost two-thirds (63.9 

percent) of rural banks do not use anything, compared with 55.3 percent of urban banks. 

QIVC-2. Figure 9. Urban/Rural 

Techniques Used for Verifying Non-Customer Identification 

Rural HQ Urban HQ 

 

 Fingerprinting Biometrics None Other Fingerprinting Biometrics None Other 

No Count 3272 3778 1368 2995 2598 3275 1464 2629

 % 86.3% 99.6% 36.1% 79.0% 79.3% 99.9% 44.7% 80.5%

Yes Count 520 14 2424 797 679 3 1814 636

 % 13.7% .4% 63.9% 21.0% 20.7% .1% 55.3% 19.5%

Total Count 3792 3792 3792 3792 3278 3279 3279 3265

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 161 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Transaction Products Offered and Fees 

Almost two-thirds of banks do not offer bank checks and money orders for non-customers. Banks 

typically charge higher fees to non-customers than to customers for all categories, with the exception 

of bill payment dollar fees and international remittance dollar fees. Both of these fee categories have 

a relatively small number of respondents, which may lead to a larger error range than for other 

categories. Both percentage and per-item fees may be charged, contributing to various types of fee 

structures and policies at different banks. 

Question IVD. Which of the following transaction products/services does 

the bank offer to individuals who do not have an account relationship with 

your bank, and what would the fees be if they were customers with 

established deposit accounts? 

For a Non-Customer For Customer 

Product/Service 

Yes 

Offer for NonDeposit 

Customers? 

If a fixed fee is 

charged per 

item please 

indicate the 

typical fee. 

If a fee is a 

percentage of the 

dollar amount, 

please indicate 

the typical

percentage rate . 

If a fixed fee is 

charged per 

item please 

indicate the 

typical fee. 

If a fee is a 

percentage of the 

dollar amount, 

please indicate 

the typical

percentage rate . 

Bank/official checks 37.3% $5.99 2.10% $4.63 0.35%

Money orders 37.3% $3.22 0.65% $2.70 0.49%

Domestic wire transfers 22.9% $21.30 7.50% $17.90 0.08%

International remittances (not 

ACH) 

6.2% $39.04 4.00% $42.48 0.10%

International ACH transfers 1.4% - - $12.48 0.50%

Foreign currency exchange 10.7% $8.83 2.20% $8.19 1.17%

Bill payment (e.g., utility) 11.5% $0.28 0.17% $1.48 0.07%

Reloadable prepaid debit cards 

(Visa, MasterCard, etc.) 12.5% $5.88 1.00% $4.76 0.20%

When considering only those banks that offer these products and services to non-customers, peritem fees are typically lower for customers than that charged by the general, overall population of 

banks that report customer fees. 

If offer for Non-Customer, for Customer 

Product/Service Offer for Non-Deposit 

Customers? 

If a fixed fee is 

charged per item 

please indicate the 

typical fee. 

If a fee is a percentage of the 

dollar amount, please indicate 

the typical percentage rate. 

Bank/official checks 37.3% $4.32 0.45% 

Money orders 37.3% $2.68 0.50% 

Domestic wire transfers 22.9% $17.46 - 

International remittances (not ACH) 6.2% $33.87 - 

International ACH transfers 1.4% - - 

Foreign currency exchange 10.7% $7.52 2.36% 

Bill payment (e.g., utility) 11.5% $0.59 0.17% 

Reloadable prepaid debit cards 

(Visa, MasterCard, etc.) 12.5% $5.16 1.00% 
 162 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

QIVD. Figure 1. Mean Fixed Fees per Transaction 

$5.88

$4.76

$0.28

$1.48

$8.83

$8.19$12.48

$39.04

$42.48

$21.30

$17.90

$3.22

$2.70

$5.99

$4.63

$0.00 $10.00 $20.00 $30.00 $40.00 $50.00

NonCustomers

Customers

Product/Service

Fee

Bank/Official Checks

Money Orders

Domestic Wire Transfers

International Remittances

International ACH Transfers

Foreign Currency Exchange

Bill Payment

Prepaid Cards

QIVD. Figure 2. Mean Percentage of Transaction Fees (If priced as a percent of value) 

1.00%

0.20%

0.17%

0.07%

2.20%

1.17%

0.50%

4.00%

0.10%

7.50%

0.08%

0.65%

0.49%

2.10%

0.35%

0.00% 2.00% 4.00% 6.00% 8.00%

Non-Customers

Customers

Product/Service

Fee

Bank/Official Checks

Money Orders

Domestic Wire Transfers

International Remittances

International ACH Transfers

Foreign Currency Exchange

Bill Payment

Prepaid Cards
 163 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Over a third (37.3 percent) of banks offer bank/official checks for non-deposit customers. 

QIVD. Figure 3. Do you offer bank/official checks for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 425 4519 62.7

 Yes 242 2685 37.3

 Total 667 7204 100.0

Missing System 18 236

Total 685 7440

There are differences among regions for banks that offer bank/official checks to non-customers. 

There is a difference between the Mid Atlantic region (12.4 percent) and the West South Central 

(42.8 percent), East North Central (40.2 percent), and West North Central (53.7 percent) regions. 

QIVD. Figure 4. Region 

Do you offer bank/official checks for non-deposit customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 347 505 579 419 657 754 641 329 288

 % 82.8% 87.6% 67.4% 65.3% 57.2% 59.8% 46.3% 70.6% 64.3%

Yes Count 72 72 280 222 493 507 742 137 160

 % 17.2% 12.4% 32.6% 34.7% 42.8% 40.2% 53.7% 29.4% 35.7%

Total Count 418 577 860 642 1150 1261 1383 466 448

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

There is not a difference between tiers for banks that offer official checks to non-customers. 

The median per-item fee for bank checks for both customers and non-customers is $5.00. However, 

the mean is higher for non-customers ($5.99) than for customers ($4.63). 

QIVD. Figure 5. Non-Customer Fee Statistics 

Weighted 

Bank Checks 

Non-Customer 

Fee 

Bank Checks 

Non-Customer %

N Valid 2463 110

Missing 222 2574

Mean $5.9876 2.1049

Median $5.0000 1.0000

Mode $5.00 1.00

Minimum $1.00 .00

Maximum $25.00 10.00
 164 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

 Nearly two-thirds (62.7 percent) of banks do not offer money orders to non-customers. 

QIVD. Figure 7. Do you offer money orders for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 421 4454 62.7

 Yes 235 2650 37.3

 Total 656 7105 100.0

Missing System 29 335

Total 685 7440

There are differences among regions for banks that offer money orders to non-customers. There is 

a difference between the East North Central region (54.0 percent) and the South Atlantic (21.0 

percent) and Pacific (16.9 percent) regions, as well as between the West North Central region (61.3 

percent) and the New England (27.0 percent), Mid Atlantic (27.6 percent), South Atlantic (21.0 

percent), East South Central (12.7 percent), West South Central (31.6 percent) and Pacific (16.9 

percent) regions. 

QIVD. Figure 8. Region 

Do you offer money orders for non-deposit customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 305 408 655 519 784 586 524 301 372

 % 73.0% 72.4% 79.0% 87.3% 68.4% 46.0% 38.7% 63.2% 83.1%

Yes Count 113 155 174 75 363 688 831 176 75

 % 27.0% 27.6% 21.0% 12.7% 31.6% 54.0% 61.3% 36.8% 16.9%

Total Count 418 563 829 594 1146 1274 1355 476 448

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

There is not a difference between tiers for banks that offer money orders to non-customers. 

The mean per-item fee for money orders is higher for non-customers ($3.22) than for customers 

($2.70). 

QIVD. Figure 9. Money Order Fees 

Weighted 

Money Order NonCustomer Fee Money Order 

Non-Customer %

N Valid 2469 42

 Missing 181 2608

Mean $3.2204 .6501

Median $3.0000 1.0000

Mode $2.00 1.00

Minimum $1.00 .00

Maximum $15.00 1.00

 QIVD. Figure 10. Money Order Fees 

Weighted 

Money Order 

Customer Fee 

Money Order 

Customer % 

N Valid 3645 151

 Missing 3795 7288

Mean $2.7022 .4875

Median $2.0000 .4000

Mode $2.00 .00

Minimum $.00 .00

Maximum $20.00 1.00
 165 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

About one-quarter (22.9 percent) of banks offer domestic wire transfers for non-customers. 

QIVD. Figure 11. Do you offer domestic wire transfers for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 520 5546 77.1

 Yes 144 1648 22.9

 Total 664 7193 100.0

Missing System 21 246

Total 685 7440

There are differences among regions for banks that offer domestic wire transfers to non-customers. 

There is a difference between the West North Central region (33.7 percent) and the Mid Atlantic 

(8.4 percent), Pacific (10.8 percent), and South Atlantic (14.4 percent) regions . 

QIVD. Figure 12. Region 

Do you offer domestic wire transfers for non-deposit customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 329 526 735 495 855 932 923 350 400

 % 81.4% 91.6% 85.6% 79.2% 74.4% 73.2% 66.3% 75.1% 89.2%

Yes Count 75 48 124 130 294 342 470 116 48

 % 18.6% 8.4% 14.4% 20.8% 25.6% 26.8% 33.7% 24.9% 10.8%

Total Count 405 574 860 625 1150 1274 1393 466 448

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

There is not a difference between tiers for banks that offer domestic wire transfers to noncustomers. 

Mean fees for domestic wire transfers for non-customers are $21.30, compared with $17.90 for 

customers. 

QIVD. Figure 13. Domestic Wire Transfer Fees 

Weighted 

Domestic Wire 

Transfer NonCustomer Fee 

Domestic Wire 

Transfer NonCustomer % 

N Valid 1480 27

 Missing 168 1620

Mean $21.3021 7.5000

Median $20.0000 7.5000

Mode $20.00 .00(a)

Minimum $2.00 .00

Maximum $50.00 15.00

Multiple modes exist. The smallest value is shown. 

QIVD. Figure 14. Domestic Wire Transfer Fees 

Weighted 

Domestic Wire 

Transfer 

Customer Fee 

Domestic Wire 

Transfer 

Customer % 

N Valid 3963 87

 Missing 3477 7353

Mean $17.8961 .0838

Median $16.0000 .0000

Mode $15.00 .00

Minimum $.00 .00

Maximum $100.00 .50
 166 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Few (6.2 percent) banks offer international remittances for non-customers. 

QIVD. Figure 15. Do you offer international remittances for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 602 6562 93.8

 Yes 46 433 6.2

 Total 648 6995 100.0

Missing System 37 445

Total 685 7440

There are differences among regions for banks that offer international remittances to noncustomers. A lower percentage of banks in the Mid Atlantic offer international remittances to noncustomers than banks in the Pacific region. 

QIVD. Figure 16. Region 

Do you offer international remittances for non-deposit customers? 

 New 

England 

Mid 

Atlantic 

South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 377 557 787 580 1047 1155 1224 435 400

 % 93.2% 97.0% 93.0% 95.0% 95.6% 92.9% 92.2% 96.2% 90.6%

Yes Count 27 17 59 31 48 89 104 17 41

 % 6.1% 3.0% 7.0% 5.0% 4.4 7.1% 7.8% 3.8% 8.9%

Total Count 405 574 846 611 1095 1244 1328 453 441

 % 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 offer international remittances to non-customers. 

A higher percentage of Tier 1 banks offer them (20.8 percent), compared with 8.5 percent of Tier 2 

and 5.9 percent of Tier 3. 

QIVD. Figure 17. Tier 

Do you offer international remittances for nondeposit customers? Tier 1 Tier 2 Tier 3 

No Count 20 486 6057

 % 79.2% 91.5% 94.1%

Yes Count 5 45 383

 % 20.8% 8.5% 5.9%

Total Count 25 531 6440

 % 100.0% 100.0% 100.0%

The median per-item fee for international remittances for non-customers is $35.00, and for 

customers it is $40.00. However, fewer banks are willing to provide international remittances for 

non-customers, so these two prices are not directly comparable. 
 167 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

QIVD. Figure 18. International Remittance Fees 

Weighted 

International 

Remittances 

Non-Customer 

Fee 

N Valid 399 

 Missing 34 

Mean $39.0438 

Median $35.0000 

Mode $40.00 

Minimum $7.00 

Maximum $75.00 

QIVD. Figure 19. International Remittance Fees 

Weighted 

International 

Remittances 

Customer Fee 

International 

Remittances 

Customer 

Percent 

N Valid 1891 75

Missing 5549 7364

Mean $42.4821 .0963

Median $40.0000 .0000

Mode $50.00 .00

Minimum $.00 .00

Maximum $500.00 .50
 168 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Only 1.4 percent of banks offer international ACH transfers for non-customers. 

QIVD. Figure 20. Do you offer international ACH transfers for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 636 6872 98.6

 Yes 8 99 1.4

 Total 644 6971 100.0

Missing System 41 469

Total 685 7440

There are few differences among regions or tiers for banks that offer international ACH transfers to 

non-customers.

Only four banks provide pricing information for international ACH non-customer fees, so the data 

are not conclusive for non-customer fees.

QIVD. Figure 21 International ACH Fees 

Weighted 

International 

ACH NonCustomer Fee 

International 

ACH NonCustomer % 

N Valid 44 0

 Missing 55 99

Mean $13.4258 

Median $4.0000 

Mode $2.00(a) 

Minimum $2.00 

Maximum $50.00 

Multiple modes exist. The smallest value is shown. 

QIVD. Figure 22 International ACH Fees 

Weighted 

International 

ACH Customer 

Fee 

International 

ACH 

Customer % 

N Valid 527 68

 Missing 6913 7371

Mean $12.4766 .5000

Median $.0000 .0000

Mode $.00 .00

Minimum $.00 .00

Maximum $65.00 2.50

About a tenth (10.7 percent) of banks report that they offer foreign currency exchange for noncustomers. 

QIVD. Figure 23 Do you offer foreign currency exchange for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 565 6293 89.3

 Yes 87 757 10.7

 Total 652 7050 100.0

Missing System 33 390

Total 685 7440
 169 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences among regions for banks that offer foreign currency exchange to noncustomers. A smaller percentage of Mid Atlantic (5.7 percent) and South Atlantic (4.3 percent) 

banks offer currency exchange than Mountain (23.7 percent) and New England (19.9 percent) 

banks. 

QIVD. Figure 24 Region 

Do you offer foreign currency exchange for non-deposit customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 335 512 783 548 1023 1143 1207 345 396

 % 80.1% 94.3% 95.7% 91.8% 90.3% 89.9% 88.2% 76.3% 88.5%

Yes Count 83 31 35 49 110 128 162 107 52

 % 19.9% 5.7% 4.3% 8.2% 9.7% 10.1% 11.8% 23.7% 11.5%

Total Count 418 543 819 597 1133 1271 1369 453 448

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

There are differences among tiers for banks that offer foreign currency exchange to non-customers. 

There is a difference between Tier 1 (41.7 percent) and Tier 3 (9.9 percent), and between Tier 2 

(19.6 percent) and Tier 3. 

QIVD. Figure 25 Tier 

Do you offer foreign currency exchange for nondeposit customers? Tier 1 Tier 2 Tier 3 

No Count 15 427 5852

 % 58.3% 80.4% 90.1%

Yes Count 10 104 643

 % 41.7% 19.6% 9.9%

Total Count 25 531 6494

 % 100.0% 100.0% 100.0%

The median per-item fee for non-customers ($10.00) for foreign currency exchange is higher than 

for customers ($7.00). 

QIVD. Figure 26 Currency Exchange Fee 

Weighted 

Foreign 

Currency 

Exchange NonCustomer Fee 

Foreign 

Currency 

Exchange NonCustomer % 

percent 

N Valid 340 83

 Missing 417 674

Mean $8.8270 2.2012

Median $10.0000 1.0000

Mode $10.00 1.00

Minimum $.00 .00

Maximum $35.00 10.00

QIVD. Figure 27 Currency Exchange Fee 

 Weighted 

Foreign 

Currency 

Exchange 

Customer Fee 

Foreign 

Currency 

Exchange 

Customer % 

N Valid 960 275

 Missing 6479 7165

Mean $8.1946 1.1713

Median $7.0000 1.0000

Mode $.00 .00

Minimum $.00 .00

Maximum $45.00 8.00
 170 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Few banks (11.5 percent) offer bill payment services to non-customers. 

QIVD. Figure 28 Do you offer bill pay for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 572 6229 88.5

 Yes 79 808 11.5

 Total 651 7036 100.0

Missing System 34 404

Total 685 7440

A greater percentage of East North Central (21.9 percent) banks and East South Central (19.8 

percent) banks offer bill payment to non-customers than Pacific (3.1 percent), Mountain (3.1 

percent), and New England (3.3 percent) banks. 

QIVD. Figure 29 Region 

Do you offer bill pay for non-deposit customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 405 478 794 476 1040 995 1184 425 431

 % 96.7% 87.5% 93.9% 80.2% 90.7% 78.1% 89.2% 96.9% 96.9%

Yes Count 14 69 51 117 106 279 144 14 14

 % 3.3% 12.5% 6.1% 19.8% 9.3% 21.9% 10.8% 3.1% 3.1%

Total Count 418 546 846 594 1146 1274 1328 439 444

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

There is little difference between tiers for banks that offer bill payment to non-customers. 

For bill pay, the mean per-item fee of 0.17 percent for non-customers is higher than that for 

customers (0.07 percent) among banks that responded. 

QIVD. Figure 30 Bill Pay Fees 

Weighted 

Bill pay NonCustomer Fee Bill pay NonCustomer % 

N Valid 261 41

 Missing 546 766

Mean $.2805 .1667

Median $.0000 .0000

Mode $.00 .00

Minimum $.00 .00

Maximum $9.95 .50

 QIVD. Figure 31 Bill Pay Fees 

Weighted 

Bill pay 

Customer Fee 

Bill pay 

Customer % 

N Valid 956 103

 Missing 6484 7337

Mean $1.4791 .0666

Median $.0000 .0000

Mode $.00 .00

Minimum $.00 .00

Maximum $30.00 .50
 171 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Only 12.5 percent of banks offer prepaid cards to non-customers. 

QIVD. Figure 32 Do you offer prepaid cards for non-deposit customers? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 559 6038 87.5

 Yes 79 864 12.5

 Total 638 6902 100.0

Missing System 47 538

Total 685 7440

There are differences among regions for banks that offer prepaid cards to non-customers. The West 

South Central region has the highest rate with 22.1 percent of banks offering prepaid cards to noncustomers, while 0.2 percent of banks in New England offer them. 

QIVD. Figure 33 Region 

Do you offer prepaid cards for non-deposit customers? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 417 501 778 562 879 1063 1068 377 393

 % 99.8% 96.5% 93.4% 92.5% 77.9% 85.3% 83.9% 86.0% 89.8%

Yes Count 1 18 55 46 250 183 205 62 44

 % .2% 3.5% 6.6% 7.5% 22.1% 14.7% 16.1% 14.0% 10.2%

Total Count 418 519 832 608 1129 1246 1273 439 437

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

There are few differences among tiers for banks that offer prepaid cards to non-customers. 

The median per-item fee for prepaid cards for non-customers ($5.00) is higher than for customers 

($4.00). 

QIVD. Figure 34 Prepaid Card Fees 

Weighted 

Prepaid 

Cards NonCustomer 

Fee 

Prepaid 

Cards NonCustomer % 

N Valid 680 14

 Missing 184 850

Mean $5.8827 1.0000

Median $5.0000 1.0000

Mode $5.00 1.00

Minimum $.00 1.00

Maximum $15.00 1.00

QIVD. Figure 35 Prepaid Card Fees 

Weighted 

Prepaid 

Cards 

Customer 

Fee 

Prepaid Cards 

Customer % 

N Valid 1043 68

Missing 6397 7371

Mean $4.7603 .2000

Median $4.0000 .0000

Mode $.00 .00

Minimum $.00 .00

Maximum $15.00 1.00
 172 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There are differences between urban and rural banks for transaction products that banks offer, 

including bank checks, money orders, domestic wire transfers, international remittances, and prepaid 

cards for non-deposit customers. Overall, a larger percentage of rural banks offer these products to 

non-customers than urban banks; 47 percent of rural banks offer bank/official checks for nondeposit customers, compared with 26 percent of urban banks. 

QIVD. Figure 36 Urban/Rural: Bank/Official 

Checks 

Do you offer bank/official 

checks for non-deposit 

customers? Rural HQ Urban HQ 

No Count 2011 2509

 % 53.0% 73.6%

Yes Count 1785 900

 % 47.0% 26.4%

Total Count 3795 3409

 % 100.0% 100.0%

QIVD. Figure 37 Urban/Rural: Money Orders 

Do you offer money orders for 

non-deposit customers? Rural HQ Urban HQ 

No Count 1939 2515

 % 51.9% 74.6%

Yes Count 1795 855

 % 48.1% 25.4%

Total Count 3734 3371

 % 100.0% 100.0%

QIVD. Figure 38 Urban/Rural: Domestic Wire 

Transfers 

Do you offer domestic wire 

transfers for non-deposit 

customers? Rural HQ Urban HQ 

No Count 2465 3081

 % 64.8% 90.9%

Yes Count 1340 307

 % 35.2% 9.1%

Total Count 3805 3388

 % 100.0% 100.0%

QIVD. Figure 39 Urban/Rural: International 

Remittance 

Do you offer international 

remittances for non-deposit 

customers? Rural HQ Urban HQ 

No Count 3313 3249

 % 90.6% 97.3%

Yes Count 342 91

 % 9.4% 2.7%

Total Count 3655 3340

 % 100.0% 100.0%

QIVD. Figure 40 Urban/Rural: Prepaid Cards 

Do you offer prepaid cards for 

non-deposit customers? Rural HQ Urban HQ 

No Count 3050 2988

 % 84.8% 90.4%

Yes Count 547 317

 % 15.2% 9.6%

Total Count 3597 3305

 % 100.0% 100.0%
 173 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Question IVD-1. For any of the services above, does your bank offer lower 

prices for customers as an incentive to open an account? Yes No 

About one-quarter (24.2 percent) of banks offer lower prices for services as an incentive for 

customers to open an account. 

QIVD-1. Figure 1 Does you bank offer lower prices for customers for these services? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 448 4928 75.8

 Yes 158 1569 24.2

 Total 606 6497 100.0

Missing System 79 943

Total 685 7440

There are no differences among regions for banks that offer lower prices for customers. 

There is a difference between tiers for banks that offer lower prices to customers. A larger 

percentage of Tier 1 banks (36.4 percent) offer lower prices, compared to Tier 3 banks (23.4 

percent). 

QIVD-1. Figure 2 Tier 

Does you bank offer lower prices for customers for 

these services? Tier 1 Tier 2 Tier 3 

No Count 15 347 4566

 % 63.6% 67.6% 76.6%

Yes Count 8 166 1395

 % 36.4% 32.4% 23.4%

Total Count 23 513 5961

 % 100.0% 100.0% 100.0%

There is not a difference between urban and rural banks for banks that offer lower prices for 

customers. 
 174 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

Remittances 

About a third (32.1 percent) of banks are concerned about offering remittances due to regulatory 

considerations. 

Question IVE. Is your bank concerned about offering remittances due to 

regulatory requirements? Yes No 

QIVE. Figure 1 Is you bank concerned about offering remittances due to regulatory requirements? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 368 4200 67.9

 Yes 211 1989 32.1

 Total 579 6189 100.0

Missing System 106 1251

Total 685 7440

There are differences among regions for banks that are concerned about offering remittances to 

non-customers due to regulatory requirements. Almost half (46.9 percent) of Pacific banks are 

concerned about offering remittances, compared with a quarter (25.1 percent) of West North 

Central and 23 percent of Mountain banks. 

QIVE. Figure 2 Region 

Is you bank concerned about offering remittances due to regulatory requirements? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 181 316 487 408 694 693 900 301 219

 % 51.8% 61.4% 68.7% 71.6% 70.2% 65.9% 74.9% 77.0% 53.1%

Yes Count 169 199 221 162 294 359 301 90 194

 % 48.2% 38.6% 31.3% 28.4% 29.8% 34.1% 25.1% 23.0% 46.9%

Total Count 350 515 708 570 989 1052 1201 391 413

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 175 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for banks that are concerned about offering remittances due to 

regulatory requirements. About a third (30.6 percent) of the Tier 3 banks are concerned, compared 

with 72.7 percent of Tier 1 banks. 

QIVE. Figure 3 Tier 

Is you bank concerned about offering remittances 

due to regulatory requirements? Tier 1 Tier 2 Tier 3 

No Count 6 257 3938

 % 27.3% 52.1% 69.4%

Yes Count 17 236 1736

 % 72.7% 47.9% 30.6%

Total Count 23 492 5674

 % 100.0% 100.0% 100.0%

There is a difference between urban and rural banks for banks that are concerned about offering 

remittances due to regulatory requirements. A larger percentage of urban banks are concerned with 

offering remittances (37.7 percent), compared with rural banks (27.1 percent). 

QIVE. Figure 4 Urban/Rural 

Is you bank concerned about 

offering remittances due to 

regulatory requirements? Rural HQ Urban HQ 

No Count 2370 1831

 % 72.9% 62.3%

Yes Count 882 1107

 % 27.1% 37.7%

Total Count 3252 2938

 % 100.0% 100.0%

Question IVE-1. If yes, please describe any regulatory concerns you may 

have in offering this product. 

Banks report concerns about regulatory requirements when offering remittances. These issues are 

similar to those related to offering check cashing and providing specialized products and services for 

the unbanked and underbanked. However, for remittances, more banks are concerned with 

BSA/AML requirements than with non-customer information/identification. 

 BSA/AML concerns are mentioned most frequently by banks, with 124 of 190 mentioning 

them. Ninety-four banks indicate that non-customer information, with regard to CIP, KYC, and 

Patriot Act compliance, is a concern for offering remittances. 

 OFAC regulations are mentioned by 51 different banks, accounting for the third most frequently 

cited issue. 

 Fraud, no recourse, risk, and monitoring requirements are also issues mentioned by banks. 

 Twenty-three banks respond “yes” but decline to provide further comments in Question IVE-1. 
 176 Services Provided to Non-Customers FDICBankSurvey_Report_204pjg.doc 
 177 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Account Opening Process 

This chapter examines the following topics: 

 Acceptable Identification for Checking Account Opening 

 New Account Screening and Risk Management Policies 

 Most Common Reasons for Declining New Account Applications 

 Options for Individuals Who Do Not Qualify for Conventional Accounts 

This section of the report explores elements of Questions 3 and 4, specifically, identification issues which prevent 

unbanked individuals from establishing conventional accounts. 

Summary 

Identification presents a significant challenge for banks. Government-issued forms of ID are 

generally required by banks to open a new account. State-issued driver’s licenses (99 percent) or 

passports (92 percent) are the most commonly accepted forms of ID. Matrícula Consular cards are 

accepted by only 27 percent of banks, with a higher percentage accepting them in western and 

southern states. Banks will also accept other, non-government-issued forms of ID to verify a 

prospective customer’s identity, including utility bills, and employer letters and paystubs. 

ChexSystems and third-party databases are used by over 87 percent of banks. In addition to 

identification requirements and an OFAC list screening by 96 percent of banks when opening a new 

checking account, banks also review individuals’ past records with services like ChexSystem and, less 

commonly, credit bureau scores. If un/underbanked individuals have mismanaged accounts in the 

past and negative hits occur when screening potential customers, about half (49 percent) of banks 

will have a branch manager review the application and decide whether or not to open the account. 

Another quarter (25 percent) of banks will automatically reject individuals with negative hits. 

Few banks have product options for individuals with blemished checking account histories.

About a quarter (25 percent) of responding banks offer an alternative, entry-level deposit account 

designed for individuals not qualified for a conventional account. Without an alternative account, 

un/underbanked individuals face a barrier to rejoin the conventional banking system. When banks 

decline a new account application, the most common reasons are negative account screening hits 

because of prior account closure or mismanagement, insufficient identification, and low credit score 

or poor credit record or history. 

Chapter 

7
 178 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Acceptable Identification for Checking Account 

Opening 

A driver’s license is the most commonly accepted form of identification to open a new account, with 

99.1 percent of banks accepting it, followed by passports, state-issued photo identification, and 

military identification. Both ITINs and Matrícula Consular cards are accepted by less than 40 

percent of banks. Other forms of identification such as utility bills, employer letters/paystubs, and 

leases can be used as secondary sources but are not solely sufficient for account opening. 

Question V A. What forms of government-issued identification does the 

bank accept as part of the new account opening process? 

 Driver’s license US or Foreign Passport Social Security number 

 Matricula consular State-issued ID card ITIN 

 Military ID Other 

QVA. Figure 1 Acceptable Forms of Identification Required to Open a Checking Account 

Identification Forms Accept Alternative 

Accepted to Verify 

Driver’s License 99.1% 

Passport (US. or foreign) 92.4% 

State-issued Photo ID 91.2% 

Military ID 88.0% 

Social Security Number 62.8% 

Individual Taxpayer Identification 

Number (ITIN) 37.6% 

Matrícula Consular Card 26.9% 

Utility Bills 58.3% 

Employer Letters/Pay Stub 33.9% 

None 31.4% 

Housing Lease 23.2% 

Other 11.5% 20.1% 

QVA. Figure 2 Driver’s License 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 5 68 .9

 Yes 677 7330 99.1

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

QVA. Figure 3 Passport 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 42 564 7.6

 Yes 640 6835 92.4

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440
 179 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVA. Figure 4 Social Security Number 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 267 2749 37.2

 Yes 415 4650 62.8

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

QVA. Figure 5 Matricula Consular 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 471 5407 73.1

 Yes 211 1992 26.9

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

QVA. Figure 6 State ID 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 53 653 8.8

 Yes 629 6746 91.2

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

QVA. Figure 7 ITIN 

 

Frequen

cy 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 412 4619 62.4

 Yes 270 2779 37.6

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

QVA. Figure 8 Military ID 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 74 4619 12.0

 Yes 608 2779 88.0

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

QVA. Figure 9 Other 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid No 579 6499 88.5

 Yes 99 845 11.5

 Total 678 7344 100.0

Missing System 7 96

Total 685 7440

Among the 99 banks that report their acceptance of “other” forms of identification, 44 banks 

specify permanent/non-permanent Resident Alien Identification or Green Cards. Ten banks accept 

Tribal Identification, and seven accept Work Visas. Other forms of acceptable identification include 

student identification, county identification, and insurance cards. 
 180 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

There are differences among regions by banks with respect to their acceptance of Social Security 

numbers and Matrícula Consular cards for new customer account opening. For Social Security 

numbers, there is a difference between the Mid-Atlantic (50.7 percent) and New England (45.9 

percent) and West South Central (74.7 percent) banks. 

QVA. Figure 10 Region: Social Security Numbers 

Social Security Number 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 234 280 373 200 298 505 425 215 220

 % 54.1% 49.3% 43.4% 29.2% 25.3% 38.4% 30.2% 43.7% 47.8%

Yes Count 198 287 487 483 879 811 985 278 241

 % 45.9% 50.7% 56.6% 70.8% 74.7% 61.6% 69.8% 56.3% 52.2%

Total Count 432 567 860 683 1177 1316 1410 494 461

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

Matrícula Consular cards are accepted at 44.3 percent of Pacific banks, but only 9.6 percent of MidAtlantic banks accept them for identification purposes when opening a new account. 

QVA. Figure 11 Region: Matricula Consular Card 

Matrícula Consular Card 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 347 512 658 521 715 913 1084 400 257

 % 80.2% 90.4% 76.5% 76.3% 60.7% 69.4% 76.9% 81.1% 55.7%

Yes Count 86 55 202 162 462 402 326 93 204

 % 19.8% 9.6% 23.5% 23.7% 39.3% 30.6% 23.1% 18.9% 44.3%

Total Count 432 567 860 683 1177 1316 1410 494 461

 % 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 all identification types except state identification and military 

identification. A higher percentage of Tier 2 banks (99.4 percent) accept a passport than Tier 3 

banks (91.8 percent). For Matrícula Consular cards and other forms of identifications, there are 

differences among all tiers. 

QVA. Figure 12 Tier: Driver’s License/Passport/Social Security Number 

Acceptable Forms of Identification Required to Open a Checking Account 

Tier 1 Tier 2 Tier 3 

 Driver’s 

License Passport 

Social 

Security 

Number 

Driver’s 

License Passport 

Social 

Security 

Number 

Driver’s 

License Passport 

Social 

Security 

Number 

No Count 0 0 15 0 3 246 68 561 2488

 % .0% .0% 58.3% .0% .6% 44.7% 1.0% 8.2% 36.5%

Yes Count 25 25 10 551 548 305 6754 6262 4334

 % 100.0% 100.0% 41.7% 100.0% 99.4% 55.3% 99.0% 91.8% 63.5%

Total Count 25 25 25 551 551 551 6822 6822 6822

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 181 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVA. Figure 13 Tier: Matricula Consular Card/ITIN/Other 

Acceptable Forms of Identification Required to Open a Checking Account 

Tier 1 Tier 2 Tier 3 

 Matricula 

Consular ITIN Other 

Matricula 

Consular ITIN Other 

Matricula 

Consular ITIN Other 

No Count 5 15 13 329 284 430 5072 4320 6057

 % 20.8% 58.3% 50.0% 59.7% 51.6% 78.0% 74.3% 63.3% 89.5%

Yes Count 19 10 13 222 267 121 1750 2502 711

 % 79.2% 41.7% 50.0% 40.3% 48.4% 22.0% 25.7% 36.7% 10.5%

Total Count 24 25 25 551 551 551 6822 6822 6768

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

There are differences between urban and rural banks for the types of government identification 

accepted, specifically with regard to Social Security numbers, Matrícula Consular cards, and state 

identification. A larger percentage of rural banks accept Social Security numbers, and a larger 

percentage of urban banks accept Matrícula Consular cards and state identifications. 

QVA. Figure 14 Urban/Rural: Drivers License/Passport/Social Security Number 

Acceptable Forms of Identification Required to Open a Checking Account 

Rural HQ Urban HQ 

 Driver’s 

License Passport 

Social Security 

Number 

Driver’s 

License Passport 

Social Security 

Number 

No Count 14 314 1187 55 250 1563

 % .3% 8.0% 30.1% 1.6% 7.2% 45.3%

Yes Count 3932 3631 2759 3398 3204 1891

 % 99.7% 92.0% 69.9% 98.4% 92.8% 54.7%

Total Count 3946 3946 3946 3453 3453 3453

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

QVA. Figure 15 Urban/Rural: Matricula Consular Card/State ID/ITIN 

Acceptable Forms of Identification Required to Open a Checking Account 

Rural HQ Urban HQ 

 Matrícula 

Consular State ID ITIN 

Matrícula 

Consular State ID ITIN 

No Count 3101 410 2468 2306 243 2151

 % 78.6% 10.4% 62.6% 66.8% 7.0% 62.3%

Yes Count 845 3535 1477 1147 3210 1302

 % 21.4% 89.6% 37.4% 33.2% 93.0% 37.7%

Total Count 3946 3946 3946 3453 3453 3453

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 182 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVA. Figure 16 Urban/Rural: Military ID/Other 

Acceptable Forms of Identification Required to Open a Checking Account 

Rural HQ Urban HQ 

 

 Military ID Other Military ID Other 

No Count 468 3439 419 3060

 % 11.9% 88.4% 12.1% 88.6%

Yes Count 3477 452 3035 393

 % 88.1% 11.6% 87.9% 11.4%

Total Count 3946 3891 3453 3453

 % 100.0% 100.0% 100.0% 100.0%

Question V B. Which, if any, of the following alternative sources of 

information does the bank accept to verify a prospective deposit customer’s 

identity? 

 Utility bills/payments Housing lease 

 Employer letters/pay stub Other: ___ None 

Utility bills are the most commonly accepted alternative form of ID for verifying a prospective 

customer’s identity, with 58.3 percent of banks accepting them. Housing leases are the least 

common, with 23.2 percent of banks accepting them as an alternative source of identification. 

QVB. Figure 1 Utility Bills 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 277 3010 41.7

 Yes 390 4214 58.3

 Total 667 7224 100.0

Missing System 18 215

Total 685 7440

QVB. Figure 2 Housing Lease 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 505 5539 76.8

 Yes 161 1672 23.2

 Total 666 7211 100.0

Missing System 19 229

Total 685 7440

QVB. Figure 3 Employer Letter/Pay Stub 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 447 4774 66.1

 Yes 219 2447 33.9

 Total 666 7221 100.0

Missing System 19 219

Total 685 7440

QVB. Figure 4 Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 518 5775 79.9

 Yes 149 1449 20.1

 Total 667 7224 100.0

Missing System 18 215

Total 685 7440
 183 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Among the banks that report accepting “other” forms of identification, the five most frequently 

cited alternative sources of information are: insurance, medicare/medicaid card (45), credit card (39), 

student identification (37), voter registration (28), and birth certificate (26). 

QVB. Figure 5 None 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 456 4900 68.6

 Yes 206 2246 31.4

 Total 662 7146 100.0

Missing System 23 294

Total 685 7440

There are no differences among regions or tiers for alternative sources of information for verifying 

deposit customers’ identities. 

There is a difference between urban and rural banks for banks that accept employee letters/pay 

stubs as alternative sources of information to verify a prospective customer’s identity. A larger 

percentage of rural banks (39.9 percent) accept employee letters and pay stubs, compared with 27.0 

percent of urban banks. 

QVB. Figure 6 Urban/Rural 

Acceptable Forms of Identification Required to Open a Checking Account 

Rural HQ Urban HQ 

 Utility bills 

Housing 

lease 

Employer 

letter/pay stub Utility bills 

Housing 

lease 

Employer 

letter/pay stub 

No Count 1433 2944 2304 1578 2595 2470

 % 37.3% 77.0% 60.1% 46.6% 76.6% 73.0%

Yes Count 2404 879 1532 1810 793 915

 % 62.7% 23.0% 39.9% 53.4% 23.4% 27.0%

Total Count 3836 3823 3836 3388 3388 3385

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 184 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

New Account Screening and 

Risk Management Policies 

Nearly all (95.6 percent) banks use OFAC lists for new account screening and risk management. 

The ChexSystem/Qualifile service is used by 77.2 percent of banks, while 33.5 percent of banks 

refer to credit bureau reports. A large percentage of banks that use OFAC lists also use 

ChexSystems/Qualifile. Less than 1 percent of banks do not use any account screening or risk 

management tools. 

QVB. Figure 6 Account Screening and Risk Management Tools 

Account Screening and Risk Management Tools 

Percentage of 

Banks 

OFAC Lists 95.6% 

ChexSystems/Qualifile 77.2% 

Credit Bureau Reports 33.5% 

Other 14.1% 

Early Warning Services (formerly Primary Payment Systems) 2.0% 

None 0.6% 

Question V C. What account screening an risk management tools are used for new 

deposit accounts? 

ChexSystems/Qualifile Early Warning Services (formerly PPS) 

 OFAC Lists Credit Bureau Reports 

 None Other: ______ 

QVC. Figure 1 ChexSystems/Qualifile 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 133 1691 22.8

 Yes 549 5718 77.2

 Total 682 7409 100.0

Missing System 3 31

Total 685 7440

QVC. Figure 2 Early Warning Services 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 655 7265 98.0

 Yes 28 147 2.0

 Total 683 7412 100.0

Missing System 2 27

Total 685 7440

QVC. Figure 3 OFAC Lists 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 31 327 4.4

 Yes 652 7085 95.6

 Total 683 7412 100.0

Missing System 2 27

Total 685 7440

QVC Figure 4 Credit Bureau Reports 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 463 4922 66.5

 Yes 219 2477 33.5

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440
 185 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVC. Figure 5 None 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 679 7368 99.4

 Yes 3 41 .6

 Total 682 7409 100.0

Missing System 3 31

Total 685 7440

QVC. Figure 6 Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 573 6359 85.9

 Yes 109 1040 14.1

 Total 682 7399 100.0

Missing System 3 41

Total 685 7440

Among the 109 banks that report “other,” the most common responses are: eFunds (10), which 

operates the CheckSystems/Qualifile; TeleCheck (10); Lexis-Nexis (9); Penley (9); and Patriot Act 

Software (6). 

There is a difference between regions for the account screening tools of ChexSystems/Qualifile and 

Credit Bureau Reports. A smaller percentage of banks in the West North Central region (61.0 

percent) use ChexSystems/Qualifile than banks in New England (95.9 percent). 

A higher percentage of banks in the East South Central (47.6 percent) and West North Central (47.1 

percent) regions use Credit Bureau Reports than banks in the New England (10.3 percent) and MidAtlantic regions (14.2 percent). 

QVC. Figure 7 Region: ChexSystems/Qualifile 

ChexSystems/ Qualifile 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 31 87 138 168 219 359 550 62 79

 % 7.1% 14.9% 16.0% 24.5% 18.6% 27.4% 39.0% 12.5% 17.1%

Yes Count 401 494 722 515 958 953 860 432 383

 % 92.9% 85.1% 84.0% 75.5% 81.4% 72.6% 61.0% 87.5% 82.9%

Total Count 432 581 860 683 1177 1312 1410 494 461

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

QVC. Figure 8 Region: Credit Bureau 

Credit Bureau 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 388 498 546 358 821 843 739 347 382

 % 89.7% 85.8% 63.5% 52.4% 69.8% 64.1% 52.9% 70.2% 82.9%

Yes Count 44 82 313 325 356 473 657 147 79

 % 10.3% 14.2% 36.5% 47.6% 30.2% 35.9% 47.1% 29.8% 17.1%

Total Count 432 581 860 683 1177 1316 1396 494 461

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 186 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

There are differences among tiers for ChexSystems/Qualifile, Early Warning Services, OFAC Lists 

and other types of account screening tools. A higher percentage of Tier 2 banks (93.7 percent) use 

ChexSystem than banks in Tier 3 (75.8 percent). For Early Warning Services, there is a difference 

between Tier 1 (54.2 percent) and Tiers 2 (4.4 percent) and 3 (1.6 percent). For other screening 

tools, there is a slight difference between Tier 1 (37.5 percent) and Tiers 2 (20.8 percent) and 3 (13.4 

percent). 

QVC. Figure 9 Tier: ChexSystems/ Early Warning Services 

Tier 1 Tier 2 Tier 3 

 ChexSystems

/Qualifile 

Early Warning 

Services 

ChexSystems/

Qualifile 

Early Warning 

Services 

ChexSystems/

Qualifile 

Early Warning 

Services 

No Count 2 11 35 527 1654 6727

 % 8.3% 45.8% 6.3% 95.6% 24.2% 98.4%

Yes Count 23 14 513 24 5182 109

 % 91.7% 54.2% 93.7% 4.4% 75.8% 1.6%

Total Count 25 25 548 551 6836 6836

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

QVC. Figure 10 Tier: OFAC Lists/Other 

Tier 1 Tier 2 Tier 3 

 OFAC Lists Other OFAC Lists Other OFAC Lists Other 

No Count 2 16 24 437 301 5906

 % 8.3% 62.5% 4.4% 79.2% 4.4% 86.6%

Yes Count 23 9 527 114 6535 916

 % 91.7% 37.5% 95.6% 20.8% 95.6% 13.4%

Total Count 25 25 551 551 6836 6822

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

There are differences between urban and rural banks for screening tools for new deposit accounts, 

including ChexSystems/Qualifile, Early Warning Systems, and Credit Bureau Reports. A larger 

percentage of urban banks (87.5 percent) use ChexSystems/Qualifile than rural banks (68.1 percent). 

A larger percentage of urban banks (3.0 percent) use Early Warning Systems than rural banks (1.1 

percent). However, a larger percentage of rural banks (39.0 percent) use Credit Bureau Reports than 

urban banks (27.2 percent). 

QVC. Figure 11 Urban/Rural: Check Systems/Qualifile/Early Warning Services/OFAC Lists 

Rural HQ Urban HQ 

 ChexSystems/

Qualifile 

Early Warning 

Services OFAC Lists 

ChexSystems/

Qualifile 

Early Warning 

Services OFAC Lists 

No Count 1258 3901 178 433 3364 149

 % 31.9% 98.9% 4.5% 12.5% 97.0% 4.3%

Yes Count 2688 44 3768 3030 103 3317

 % 68.1% 1.1% 95.5% 87.5% 3.0% 95.7%

Total Count 3946 3946 3946 3463 3467 3467

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 187 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVC. Figure 12 Urban/Rural: Credit Bureau Reports/None/Other 

Rural HQ Urban HQ 

 Credit Bureau 

Reports None Other 

Credit Bureau 

Reports None Other 

No Count 2397 3905 3392 2525 3463 2967

 % 61.0% 99.0% 86.3% 72.8% 100.0% 85.6%

Yes Count 1535 41 540 942 0 500

 % 39.0% 1.0% 13.7% 27.2% .0% 14.4%

Total Count 3932 3946 3932 3467 3463 3467

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

Question V D. Can a new customer open a deposit account without the bank 

screening the customer using ChexSystems or a similar third-party screen 

being used by the bank? 

Checking account:............... Yes No 

Savings account:................. Yes No 

A large majority (87.1 percent) of banks require a third-party screen before permitting individuals to 

open checking accounts. Slightly fewer banks (81.4 percent) require third-party screens to open 

savings accounts. 

QVD. Figure 1 Can a customer open a checking 

account without a third-party 

screen? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 596 6391 87.1

 Yes 81 950 12.9

 Total 677 7341 100.0

Missing System 8 99

Total 685 7440

QVD. Figure 2 Can a customer open a savings 

account without a third-party 

screen? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 557 5973 81.4

 Yes 117 1368 18.6

 Total 674 7340 100.0

Missing System 11 99

Total 685 7440

There are differences among regions for opening accounts without a third-party screen. There are 

differences with regard to checking accounts in the West North Central region (24.7 percent) 

compared with New England (0.0 percent) and the South Atlantic (4.9 percent) regions. 

QVD. Figure 3 Region: Can a customer open a checking account without a third-party screen? 

Can a customer open a checking account without a third-party screen? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 446 454 818 604 1057 1106 1051 463 393

 % 100.0% 84.2% 95.1% 90.3% 89.8% 84.1% 75.3% 93.8% 88.4%

Yes Count 0 86 42 65 120 210 345 31 51

 % .0% 15.8% 4.9% 9.7% 10.2% 15.9% 24.7% 6.2% 11.6%

Total Count 446 540 860 669 1177 1316 1396 494 444

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 188 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

A greater percent of banks in the West North Central region (32.6 percent) do not require a 

screening for savings accounts than banks in the New England (0.8 percent) or South Atlantic (10.6 

percent) regions. 

QVD. Figure 4 Region: Can a customer open a savings account without a third-party screen? 

Can a customer open a savings account without a third-party screen? 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 442 475 756 560 1016 983 938 418 385

 % 99.2% 82.2% 89.4% 82.4% 86.6% 75.5% 67.4% 87.2% 86.6%

Yes Count 3 103 90 120 157 319 455 62 59

 % .8% 17.8% 10.6% 17.6% 13.4% 24.5% 32.6% 12.8% 13.4%

Total Count 446 577 846 679 1174 1302 1393 480 444

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

There are no differences among tiers for opening accounts without a third-party screen. 

There are differences between urban and rural banks for banks that allow customers to open deposit 

accounts without a third-party screen. A larger percentage of rural banks (18.7 percent for checking, 

25.1 percent for savings) allow customers to open accounts without a third-party screen than urban 

banks (6.4 percent and 11.3 percent, respectively). 

QVD. Figure 5 Urban/Rural 

Can a customer open an account without a third-party screen? 

Rural HQ Urban HQ Checking Savings Checking Savings 

No Count 3176 2923 3215 3049

 % 81.3% 74.9% 93.6% 88.7%

Yes Count 728 978 221 390

 % 18.7% 25.1% 6.4% 11.3%

Total Count 3905 3901 3436 3439

 % 100.0% 100.0% 100.0% 100.0%

About half (48.6 percent) of banks require branch managers to decide on overrides when an 

applicant screening returns a negative hit. Over a quarter (25.2 percent) of banks will reject the 

account application automatically if there is negative information in ChexSystem records. 

QVD. Figure 6 Bank Policies on Opening/Overrides 

Bank Policy on Openings/Overrides % of Banks

Account opening decision is made at the discretion of the branch 

manager 

48.6% 

Application is automatically rejected 25.2% 

Other 18.2% 

Account opening decision is made at the discretion of the new account 

representative 13.3% 

Application is submitted to a centralized back office for review 6.5% 
 189 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Question V E. If an applicant screening process returns a negative hit, what 

is the bank’s policy regarding account opening/overrides? 

 Application is automatically rejected 

 Account opening decision is made at the discretion of the new account representative 

 Account opening decision is made at the discretion of the branch manager 

 Application is submitted to a centralized back office for review 

 Other: ___

QVE. Figure 1. Automatically Rejected 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 511 5431 74.8

 Yes 160 1828 25.2

 Total 671 7259 100.0

Missing System 14 181

Total 685 7440

QVE. Figure 2. Decision is made at the discretion 

of the new account rep 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 584 6296 86.7

 Yes 87 963 13.3

 Total 671 7259 100.0

Missing System 14 181

Total 685 7440

QVE. Figure 3. Decision is made at the discretion 

of the branch manager 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 333 3732 51.4

 Yes 338 3526 48.6

 Total 671 7259 100.0

Missing System 14 181

Total 685 7440

QVE. Figure 4. Submitted to a centralized office 

for review 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 625 6790 93.5

 Yes 46 469 6.5

 Total 671 7259 100.0

Missing System 14 181

Total 685 7440

QVE. Figure 5. Other 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 534 5925 81.8

 Yes 136 1320 18.2

 Total 670 7245 100.0

Missing System 15 195

Total 685 7440

Among the banks reporting “other,” the most frequently mentioned responses include: may be 

opened at discretion of upper management (63), offer a limited service account (23), action depends 

on nature of hit and when it occurred (13), and account may be opened with proof of hit being 

resolved (11). 
 190 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

There is a difference between regions for having branch managers decide when the screening 

process returns a negative hit. A lower percentage of banks in the West North Central region (38.3 

percent) have branch managers decide, compared with the South Atlantic (63.1 percent) and New 

England (73.1 percent) regions. 

QVE. Figure 6. Region 

Decision is made at the discretion of the branch manager 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 120 323 317 359 640 721 828 223 202

 % 26.9% 56.9% 36.9% 54.0% 54.3% 56.5% 61.7% 45.3% 46.6%

Yes Count 326 244 543 307 537 554 514 270 232

 % 73.1% 43.1% 63.1% 46.0% 45.7% 43.5% 38.3% 54.7% 53.4%

Total Count 446 567 860 666 1177 1274 1341 494 434

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

There are differences between tiers for automatic rejections, branch manager decisions, and other 

override decisions on opening accounts when the screening process returns a negative hit. A small 

percentage (4.2 percent) of Tier 1 banks automatically reject candidates, compared with 21.5 percent 

of Tier 2 banks and 25.6 percent of Tier 3 banks. Branch managers decide at 75.0 percent of Tier 1 

banks, compared with 53.8 percent in Tier 2 and 48.1 percent in Tier 3. One-third (33.3 percent) of 

Tier 1 banks note “other” policies, compared with 27.2 percent of Tier 2 banks and 17.4 percent of 

Tier 3 banks. 

QVE. Figure 7. Tier 

Tier 1 Tier 2 Tier 3 

 

 Automatically 

Rejected 

Decision is 

made at the 

discretion of 

the new 

account rep 

Automatically 

Rejected 

Decision is 

made at the 

discretion of 

the new 

account rep 

Automatically 

Rejected 

Decision is 

made at the 

discretion of 

the new 

account rep 

No Count 24 20 430 492 4977 5783

 % 95.8% 79.2% 78.5% 89.9% 74.4% 86.5%

Yes Count 1 5 118 55 1709 902

 % 4.2% 20.8% 21.5% 10.1% 25.6% 13.5%

Total Count 25 25 548 548 6686 6686

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 191 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVE. Figure 8. Tier 

Tier 1 Tier 2 Tier 3 

 

 

Decision is 

made at 

the 

discretion 

of the 

branch 

manager 

Submitted 

to a 

centralized 

office for 

review Other

Decision is 

made at the 

discretion of 

the branch 

manager 

Submitted 

to a 

centralized 

office for 

review Other

Decision is 

made at the 

discretion of 

the branch 

manager 

Submitted 

to a 

centralized 

office for 

review Other

No Count 6 22 17 253 506 399 3473 6262 5510

 % 25.0% 87.5% 66.7% 46.2% 92.4% 72.8% 51.9% 93.7% 82.6%

Yes Count 19 3 8 295 42 149 3213 424 1162

 % 75.0% 12.5% 33.3% 53.8% 7.6% 27.2% 48.1% 6.3% 17.4%

Total Count 25 25 25 548 548 548 6686 6686 6672

 % 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 the bank’s policies regarding account 

opening/overrides. 

Question V F. Does the bank use credit report or bureau scores as part of its 

screening process for new checking accounts? Yes No 

Most banks (80.7 percent) do not use credit reports or bureau scores when performing background 

screens on new customers who are seeking to open checking accounts at their bank. 

QVF. Figure 1. Does the bank use credit reports or bureau scores as screening for new checking accounts? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 541 5918 80.7

 Yes 133 1412 19.3

 Total 674 7330 100.0

Missing System 11 110

Total 685 7440

A smaller percentage of banks in the Mountain (3.5 percent) and Pacific (3.4 percent) regions use 

credit reports as a screening tool to open new checking accounts than banks in the South Atlantic 

(29.9 percent) or East South Central (33.2 percent) region. 

QVF. Figure 2. Region 

Does the bank use credit reports or bureau scores as screening for new checking accounts? 

 New 

England 

Mid 

Atlantic 

South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

No Count 391 487 602 454 1020 1050 1022 473 419

 % 90.5% 88.6% 70.1% 66.8% 87.7% 79.8% 72.7% 96.5% 96.6%

Yes Count 41 63 257 226 144 265 384 17 15

 % 9.5% 11.4% 29.9% 33.2% 12.3% 20.2% 27.3% 3.5% 3.4%

Total Count 432 550 860 679 1163 1316 1406 490 434

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 192 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

A higher percentage of Tier 1 banks (50.0 percent) use credit reports as a screening tool for opening 

new checking accounts than Tier 2 (16.1 percent) and Tier 3 banks (19.4 percent). 

QVF. Figure 3. Tier 

Does the bank use credit reports or bureau scores 

as screening for new checking accounts? Tier 1 Tier 2 Tier 3 

No Count 13 451 5455

 % 50.0% 83.9% 80.6%

Yes Count 13 87 1313

 % 50.0% 16.1% 19.4%

Total Count 25 538 6768

 % 100.0% 100.0% 100.0%

There is little difference between urban and rural banks for banks that use credit reports as a 

screening tool for opening new checking accounts. 

Common Reasons for Declining New Account 

Applications 

Question VG. What are the top three most common reasons that a new 

account application is declined? Please rank the three most common 

reasons 1 to 3, where 1 = the most common reason, 2 = the second most 

common reason, and 3 = the third most common reason. 

___Insufficient identification information 

___Negative account screening hit due to prior account closure or mismanagement 

___Negative account screening hit due to potential fraud alert 

___No credit score/Insufficient credit history 

___Low credit score/ or poor credit record/credit history 

___Insufficient initial deposit 

___Other 1 

___Other 2 
 193 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Banks’ most common reason for declining new accounts is negative screening information about a 

prior account (62.2 percent), followed by insufficient identification information (38.6 percent) and a 

low credit score/rating (37.0 percent). 

QVG. Figure 1. Reason for Declining Applications 

Reason for Declining Applications Ranked 

#1 

Ranked #1 

or #2 

Negative account screening hit due to prior account closure or 

mismanagement 62.2% 90.5% 

Insufficient identification information 38.6% 73.9% 

Low credit score/ or poor credit record/credit history 37.0% 69.6% 

Other 13.9% 50.4% 

Negative account screening hit due to potential fraud alert 8.9% 46.7% 

No credit score/Insufficient credit history 2.9% 37.1% 

Insufficient initial deposit 10.3% 32.6% 

QVG. Figure 2. Overall Calculated Rankings 

Reason for Decline Rank 

Negative account screening hit due to prior account closure 

or mismanagement 1 

Insufficient identification information 2 

Negative account screening hit due to potential fraud alert 3 

Insufficient initial deposit 4 

Low credit score/ or poor credit record/credit history 5 

No credit score/Insufficient credit history 6 

Other 7 

*Choices were scored in reverse order, where 1 = 5 points, 2 = 4 points etc. Choices were then 

ranked according to total points. 
 194 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Rankings are identical for the top three choices across all three tiers. The rankings for the reasons by 

region were also identical to overall rankings.

QVG. Figure 3. Calculated Rankings by Tier 

Reason for Decline Tier 1 Rank Tier 2 Rank Tier 3 Rank 

Negative account screening hit due to 

prior account closure or mismanagement 

1 1 1 

Insufficient identification information 2 2 2 

Negative account screening hit due to 

potential fraud alert 

3 3 3 

Low credit score/ or poor credit 

record/credit history 

4 4 5 

Insufficient initial deposit 7 5 4 

Other 6 6 6 

No credit score/Insufficient credit history 5 7 7 

QVG. Figure 4. Statistics 

 Weighted 

Insufficient 

ID 

Negative account 

screening due to 

prior closure or 

mismanagement

Negative 

account 

screening 

due to 

potential 

fraud alert

No credit 

score/ 

insufficient 

credit history 

Low credit 

score/ poor 

credit 

record or 

history 

Insufficient 

initial 

deposit Other 1 Other 2

N Valid 6725 6371 4220 581 1202 1889 443 58

 Missing 714 1069 3219 6859 6237 5551 6996 7382

Mean 1.88 1.48 2.45 2.83 2.05 2.67 2.39 3.00

Median 2.00 1.00 3.00 3.00 2.00 3.00 2.00 3.00

Mode 1 1 3 3 1 3 3 3

Minimum 1 1 1 1 1 1 1 3

Maximum 4 4 4 6 6 6 4 3
 195 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVG. Figure 5. Insufficient ID 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 242 2593 38.6

 2 219 2375 35.3

 3 157 1744 25.9

 4 1 14 .2

 Total 619 6725 100.0

Missing System 66 714

Total 685 7440

QVG. Figure 6. Negative account screening due 

to prior closure or 

mismanagement 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 365 3961 62.2

 2 167 1805 28.3

 3 63 592 9.3

 4 1 14 .2

 Total 596 6371 100.0

Missing System 89 1069

Total 685 7440

QVG. Figure 7. Negative account screening due 

to potential fraud alert 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 35 377 8.9

 2 159 1596 37.8

 3 216 2217 52.5

 4 3 31 .7

 Total 413 4220 100.0

Missing System 272 3219

Total 685 7440

QVG. Figure 8. No credit score/insufficient credit 

history 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 2 17 2.9

 2 16 198 34.1

 3 25 284 48.8

 4 3 41 7.1

 5 2 27 4.7

 6 1 14 2.4

 Total 49 581 100.0

Missing System 636 6859

Total 685 7440

QVG. Figure 9. Low credit score/poor credit 

record or history 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 39 444 37.0

 2 35 392 32.6

 3 27 298 24.8

 4 1 14 1.1

 5 3 41 3.4

 6 1 14 1.1

 Total 106 1202 100.0

Missing System 579 6237

Total 685 7440

QVG. Figure 10. Insufficient initial deposit 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 15 195 10.3

 2 33 421 22.3

 3 101 1174 62.2

 4 5 58 3.1

 6 3 41 2.2

 Total 157 1889 100.0

Missing System 528 5551

Total 685 7440
 196 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

QVG. Figure 11. Other 1 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 1 6 62 13.9

 2 15 162 36.5

 3 19 206 46.5

 4 1 14 3.1

 Total 41 443 100.0

Missing System 644 6996

Total 685 7440

QVG. Figure 12. Other 2 

 Frequency 

Weighted 

Frequency

Weighted 

Percent 

Valid 3 5 58 100.0

Missing System 680 7382

Total 685 7440

Among banks reporting “other,” the most common reasons for declining accounts include: poor 

account history (18), unable to verify identification or other information given (10), questionable or 

insufficient initial deposit (7), and individual owes money to a bank (4). 

There are differences among regions in rankings for negative account screening due to prior closure 

or mismanagement. A larger percentage (73.0 percent) of New England banks followed by banks in 

the East South Central (71.7 percent) and East North Central (71.0 percent) regions gave this 

category a first-place ranking than other regions, while a lesser percentage of Mid-Atlantic banks 

(40.1 percent) ranked it first. 

QVG. Figure 13. Region 

Negative Account Screening Due to Prior Closure or Mismanagement 

 New 

England 

MidAtlantic South 

Atlantic 

East 

South 

Central 

West 

South 

Central 

East 

North 

Central 

West 

North 

Central Mountain Pacific 

1 Count 305 199 433 418 698 741 658 267 241

 % 73.0% 40.1% 56.0% 71.7% 64.2% 71.0% 61.0% 56.0% 58.2%

2 Count 68 249 282 121 301 178 335 155 117

 % 16.3% 50.2% 36.4% 20.7% 27.7% 17.0% 31.1% 32.5% 28.2%

3 Count 44 48 44 44 89 125 86 55 56

 % 10.6% 9.7% 5.8% 7.6% 8.2% 12.0% 7.9% 11.5% 13.5%

4 Count 0 0 14 0 0 0 0 0 0

 % .0% .0% 1.8% .0% .0% .0% .0% .0% .0%

Total Count 418 495 773 584 1088 1044 1078 476 413

 % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
 197 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

There is a difference between tiers for the ranking of a negative account screening due to prior 

closure or mismanagement. There is a difference between Tier 1 (36.4 percent ranked first) and Tier 

3 (62.3 percent ranked first). 

QVG. Figure 14. Tier 

Tier 1 Tier 2 Tier 3 

 

 Insufficient 

ID 

Negative 

account 

screening due 

to prior closure 

or mismanagement 

Negative 

account 

screening 

due to 

potential 

fraud alert

Insufficient 

ID 

Negative 

account 

screening 

due to prior 

closure or 

mismanagement

Negative 

account 

screening 

due to 

potential 

fraud alert 

Insufficient 

ID 

Negative 

account 

screening due 

to prior closure 

or mismanagement 

Negative 

account 

screening 

due to 

potential 

fraud alert

1 Count 9 8 4 205 316 17 2379 3637 355

 % 50.0% 36.4% 20.0% 39.9% 61.9% 4.3% 38.4% 62.3% 9.4%

2 Count 7 8 7 180 128 166 2188 1668 1422

 % 38.9% 36.4% 35.0% 35.1% 25.2% 41.7% 35.3% 28.6% 37.4%

3 Count 2 6 9 128 66 212 1613 520 1996

 % 11.1% 27.3% 45.0% 25.0% 12.9% 53.0% 26.0% 8.9% 52.5%

4 Count 0 0 0 0 0 3 14 14 27

 % .0% .0% .0% .0% .0% .9% .2% .2% .7%

Total Count 19 23 21 513 510 399 6193 5838 3801

 % 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 the ranking of the common reasons for 

declining accounts. 
 198 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Options for Individuals Who Do Not Qualify for 

Conventional Accounts 

Question V H. If a new account applicant does not qualify for a conventional 

checking account, does the bank offer any entry deposit accounts designed 

for individuals not qualified for conventional accounts that can serve as a 

“stepping stone” account (e.g., an account with debit card access but no 

check writing)? 

 Yes No 

About a quarter (24.6 percent) of all banks have at least one entry deposit account designed for 

individuals not qualified for conventional accounts. This percentage may be overstated as the 

majority of account descriptions reported by banks in the subsequent open-ended question might 

not be classified as entry-level accounts for otherwise unqualified individuals. 

QVH. Figure 1. Does the bank offer “stepping stone” accounts? 

 Frequency 

Weighted 

Frequency 

Weighted 

Percent 

Valid No 499 5518 75.4

 Yes 177 1799 24.6

 Total 676 7317 100.0

Missing System 9 123

Total 685 7440

There is little difference between regions for banks that offer stepping stone accounts. 

There is a difference between tiers for banks that offer stepping stone accounts. A greater 

percentage of Tier 1 banks (50.0 percent) offer the accounts, compared to 28.9 percent and 24.1 

percent of Tier 2 and Tier 3 banks, respectively. 

QVH. Figure 2. Tier 

Does the bank offer “stepping stone'” 

accounts? Tier 1 Tier 2 Tier 3 

No Count 13 392 5113

 % 50.0% 71.1% 75.9%

Yes Count 13 160 1627

 % 50.0% 28.9% 24.1%

Total Count 25 551 6740

 % 100.0% 100.0% 100.0%

There is little difference between urban and rural banks for banks that offer stepping stone accounts. 
 199 Account Opening Process FDICBankSurvey_Report_204pjg.doc 

Question V H-1. If yes, please describe the alternative account(s) offered. 

Include information related to products, transaction restrictions, fees, etc. 

If possible, please include a copy of the product description or marketing 

brochure for any alternative accounts. 

Account A: Date Introduced: 

Account B: Date Introduced: 

Account C: Date Introduced: 

Qualitative analysis shows that a common approach is to offer some form of savings account as an 

entry-level account for unbanked and underbanked individuals. 

These accounts are difficult to categorize and characterize along common dimensions due to a wide 

variety of features, conditions, requirements, and restrictions placed on these accounts by banks. 

Among the 180 bank that provide descriptions of alternative accounts that they offer, only about 

one-third (62 of 180) of the reporting banks appear to offer a distinct entry-level account for 

un/underbanked individuals. 

The majority (117 of 180) of reporting banks describe accounts that would not be considered an 

entry-level deposit account. 

 About half (89 of 180) of reporting banks describe some form of savings account, including 

regular, passbook, and statement savings accounts. 

 Standard checking accounts, with no modifications or restrictions on what is offered to 

mainstream customers, are reported by 16 of 180 banks. 

Few (10 of 180) banks report offering electronic transfer accounts (ETAs) as an alternative account 

offered to un/underbanked individuals. 
 200 Account Opening Process FDICBankSurvey_Report_204pjg.doc