Tracking the Underbanked
More than one quarter of U.S. households — equal to about 60 million people — are unbanked or underbanked, according to a survey by the Federal Insurance Deposit Corp.
Specifically, 7.7% of households, or 17 million adults, nationwide were unbanked. Another 17.9% — 43 million adults — were found to be underbanked.
Households were identified as unbanked if they answered “no” to the question: “Do you or does anyone in your household currently have a checking or savings account?” Underbanked households were defined as those that have a checking or savings account but rely on alternative financial services like nonbank money orders, nonbank check-cashing services, payday loans, rent-to-own agreements, or pawn shops.
Data in three of the four regions surveyed was fairly consistent. The population of unbanked or underbanked households totaled 23% in the Midwest, Northeast, and West. But in the South, the percentage was 30%.
Mississippi was the state with the highest percentage of unbanked households — 16.4% — and the second-highest underbanked households — 25.2% (Alaska was highest among underbanked, at 25.5%.)
How much of an opportunity is that for auto financiers?
Click here for detailed data from the FDIC’s report.
