Fewer Americans Use Bank Accounts 2023
This is the gist of a currently Fewer Americans Use Bank Accounts 2023 launched FDIC record on unbanked and underbanked U.S. families. more than one in four American families.
Relying as a substitute Fewer Americans Use Bank Accounts:
a few or all in their financial transactions on opportunity financial offerings (AVSs), together with prepaid playing cards and payday loans, we examine Fewer Americans Use Bank Accounts.

As become the case with the Fewer Americans Use Bank Accounts:
survey, the companies which might be more likely to be unbanked or underbanked encompass non-Asian minorities, overseas-born non-citizens, unmarried families, less educated families, younger families, unemployed households, non-homeowners, and lower-earnings households Fewer Americans Use Bank Accounts.
The FDIC defines unbanked Fewer Americans Use Bank Accounts:
families as people who lack any kind of deposit account at an insured depository monetary organization. Underbanked families, alternatively, do have a bank account, but additionally rely upon AFS companies. finally, fully banked households are those who have a financial institution account of any kind and feature now not recently depended on any of the AFSs protected in the survey. Now let’s test the records Fewer Americans Use Bank Accounts.
right here are the survey’s key findings Fewer Americans Use Bank Accounts:
eight.2 percentage of U.S. families are unbanked. this is 10 million families in overall, wherein stay about 17 million adults. the share of unbanked families has elevated barely—by an predicted zero.6 percent, or 821,000 families—for the reason that 2009 survey Fewer Americans Use Bank Accounts.
20.1 percent of U.S. families are underbanked. this is 24 million households with fifty one million adults. by using comparison, the 2009 price became 18.2 percent, but the ratios aren’t immediately comparable because of methodological differences within the two surveys.
29.3 percentage of households do no longer have a financial savings account.
10 percentage of households do not have a checking account.
67.2 percent of households have both checking and savings money owed.
right here are the charts:
Fewer Americans Use Bank Accounts:
who are the Unbanke Unbanked and underbanked agencies have various demographic characteristics, past banking experiences, motives for now not having a financial institution account, and future banking plans, we learn. near 1/2 of all households that include non-Asian minorities, more youthful, unemployed and lower-income individuals fall into this sort of categories. here is the desk Fewer Americans Use Bank Accounts.
Fewer individuals Use bank money owed Fewer Americans Use Bank Accounts
barely extra than half of of all unbanked households have in no way had a bank account, such as 14.7 percent of Hispanic and 18.nine percentage of overseas-born non-citizen families. The maximum common motives for no longer having bank accounts are that the unbanked sense that they do not have enough money for an account, or they sincerely do not need or need one Fewer Americans Use Bank Accounts.
What economic services Are the Unbanked the use of as an alternative?
The cash order tops the list of the maximum widely used alternative financial offerings. near a 5th (18.3 percent) of all U.S. households have used a non-financial institution money order in the remaining yr and, as expected, the ratios are better for underbanked households—71.2 percentage—and for unbanked ones—forty nine.1 percent. here is the whole list of products utilized by the unbanked:
Fewer americans Use financial institution debts

And now the underbanked Fewer Americans Use Bank Accounts:
Fewer individuals Use financial institution bills 10.1% of families Have Used pay as you go playing cards furthermore, prepaid card use is better amongst families that don’t have a checking account (16.5 percent) than it’s far among those that do (nine.3 percentage). pay as you go card use does not vary with financial savings account possession. the share of unbanked families that have used a pay as you go card rose from 12.2 percent in 2009 to 17.8 percent in 2011. For underbanked families the growth became a whole lot much less considerable (up from sixteen.4 percentage in 2009 to 17.4 percentage in 2011). here is the chart:
Fewer americans Use financial institution money Fewer Americans Use Bank Accounts.
Why Do households Use Payday Loans and Pawn stores well, the biggest cause—stated by means of approximately forty percent of the respondents—is that it’s miles simpler to get payday loans or to get money from a pawn store than to qualify for a bank loan. additionally, Fewer Americans Use Bank Accounts approximately a fifth of the respondents stated that they do so due to the fact they assume that banks do no longer provide small-dollar loans. here is the overall list for payday loans:
Fewer people Use bank money owed
And here is the list for pawn shops:
Fewer individuals Use bank money owed
One of the survey authors’ conclusions is that a higher knowledge of the varying demographic traits, banking behaviors, and AFS utilization styles of the unbanked and underbanked household groups could lead to the improvement of merchandise and techniques which are better designed to have interaction these purchasers. but, you would nevertheless need to persuade them of the benefits of starting up a bank account within the first location and that isn’t precisely a trivial exercising, as Fewer Americans Use Bank Accounts.
we learned from a Federal Reserve survey earlier this yr The FDIC is committed to increasing americans’ get entry to to safe, relaxed, and inexpensive banking offerings, which is crucial to the FDIC’s mission of maintaining the steadiness of and public confidence within the U.S. financial gadget. The FDIC countrywide Survey of Unbanked and Underbanked families is one contribution to this quit. carried out biennially because 2009 partially in response to a statutory Fewer Americans Use Bank Accounts.
mandate, the survey is run in partnership with the U.S. Census Bureau and collects statistics on financial institution account ownership; use of prepaid cards and nonbank online payment services; use of nonbank cash orders, test cashing, and money switch offerings; and use of bank and nonbank credit Fewer Americans Use Bank Accounts.
Survey effects Fewer Americans Use Bank Accounts:
All PDF files on this web page reference portable document format (PDF) files. Adobe Acrobat, a reader to be had for free at the internet, is required to display or print PDF documents. (PDF assist)
2021 executive summary – PDF Fewer Americans Use Bank Accounts
2021 report – PDF
2021 Appendix Tables – PDF
2021 Technical Notes and Survey Revisions – PDF
2021 instrument – PDF
click on for an interactive map of unbanked rates via geography
Key Findings and Implications from the 2021 Survey
Key Findings Fewer Americans Use Bank Accounts 2023.

countrywide Unbanked price Fewer Americans Use Bank Accounts
An anticipated four.5 percent of U.S. households (about 5.9 million) had been “unbanked” in 2021, meaning that no person inside the household had a checking or financial savings account at a financial institution or credit score union Fewer Americans Use Bank Accounts.
The unbanked rate in 2021—4.5 percent—turned into the lowest since the survey commenced in 2009. among 2019 and 2021, the unbanked charge fell 0.nine percentage factors, corresponding to an growth of about 1.2 million banked families Fewer Americans Use Bank Accounts.
between 2011—when the unbanked rate became at its highest level because the survey began—and 2021, the unbanked fee fell three.7 percent points, corresponding to an boom of about 5.zero million banked families.
Unbanked fees through family traits Fewer Americans Use Bank Account.
constant with the effects of preceding surveys, unbanked costs in 2021 varied extensively throughout the U.S. population. as an example, unbanked charges have been better amongst lower-income families, less-educated families, Black families, Hispanic families, running-age families with a disability, and unmarried-mom families.
variations in unbanked fees among Black Fewer Americans Use Bank Accounts.
and White families and among Hispanic and White households in 2021 were present at every income stage. for instance, amongst households with earnings between $30,000 and $50,000, 8.0 percent of Black families and eight.4 percentage of Hispanic households had been unbanked, in comparison with 1.7 percentage of White families.
Unbanked families: motives for now not Having a financial institution Account Fewer Americans Use Bank Accounts.
“don’t have enough money to meet minimal stability necessities” become mentioned via 21.7 percent of unbanked households as the principle motive for not having an account—the most mentioned most important purpose.
“don’t trust banks” turned into the second-most noted main purpose for no longer having an account in 2021 (13.2 percent), and “averting a financial institution gives extra privacy” became the 1/3-maximum mentioned principal purpose (eight.four percentage) Fewer Americans Use Bank Accounts.
Pandemic and Transitions in financial institution Account ownership Fewer Americans Use Bank Accounts:
New questions within the 2021 survey requested households whether they skilled financial changes for the reason that begin of the COVID-19 pandemic in March 2020 and whether those changes contributed to the final or establishing of households’ bank bills.
approximately one in 3 (34.nine percent) currently banked families said that receiving a government benefit charge (for example, unemployment benefits or an endemic stimulus charge) contributed to commencing a financial institution account given that Fewer Americans Use Bank Accounts.
In different words, many of the seventy seven.9 percent of these days banked families that acquired a central authority gain charge, almost half (44.eight percentage)—representing about 1.nine million families—said that the charge contributed to starting an account.
approximately one in 5 (21.1 percent) currently unbanked families mentioned that dropping or quitting a task, being furloughed, having reduced hours, or having a huge loss of income contributed to last a financial institution account because March 2020.
Banked households: primary technique Used to get admission to bank money owed
Among banked families Fewer Americans Use Bank Accounts:
Use of cellular banking improved sharply (from 15.1 percentage in 2017 to 34.0 percentage in 2019 to forty three.5 percent in 2021) and remained the maximum ordinary number one approach of account get entry to.
Use of a financial institution teller declined appreciably (from 24.8 percentage in 2017 to 21.0 percent in 2019 to 14.9 percentage in 2021) but remained conventional among sure segments of the populace, along with decrease-profits families, much less-educated families, older families, and households that did not live in a metropolitan location.
pay as you go playing cards and Nonbank online fee services Fewer Americans Use Bank Accounts.

In 2021, 6.9 percent of all households have been using preferred purpose reloadable prepaid playing cards at the time of the survey, and forty six.4 percent of all households were the usage of nonbank on-line price services. Examples of nonbank online charge offerings are PayPal, Venmo, and coins App.
Use of prepaid cards become a good deal higher among unbanked households (32.8 percentage) than among banked families (five.7 percent) Fewer Americans Use Bank Accounts.
Use of nonbank on line charge offerings become a lot decrease among unbanked families (18.1 percentage) than amongst banked families (forty seven.7 percentage Fewer Americans Use Bank Accounts).
Unbanked households have been twice as likely to use prepaid playing cards or nonbank online charge services to behavior 4 or greater types of transactions compared with banked families.
Nonbank money Orders, take a look at Cashing, and money switch services Fewer Americans Use Bank Accounts
Use of nonbank money orders and nonbank take a look at cashing declined steadily among 2017 and 2021.
In 2021, nine.7 percent of all families used nonbank money orders, down from 14.three percentage in 2017 and eleven.nine percent Fewer Americans Use Bank Accounts.
In 2021, 3.2 percentage of all households used nonbank check cashing, down from 6.4 percentage in 2017 and 5.5 percentage in 2019.
In 2021, 7.zero percentage of all households used nonbank cash transfer services from businesses like Western Union, MoneyGram, Walmart cash middle, or Ria money switch.
Bank and Nonbank credit Fewer Americans Use Bank Accounts
In 2021, 71.5 percentage of households had a Visa, credit card, American specific, or discover credit score card (i.e., a credit card), similar to the share in 2019 (71.three percent) and above the 2017 level (68.5 percentage). the percentage of families that had a personal mortgage or line of credit from a financial institution (i.e., a financial institution private mortgage) reduced from 10.8 percent in 2019 to eight.0 percent in 2021. Altogether, 72.five percent of households in 2019 and seventy two.3 percent of families in 2021 had a credit card or bank non-public mortgage. similarly, 2.8 percent of families had a personal mortgage or line of credit from a business enterprise apart from a financial institution (i.e. a nonbank private mortgage) Fewer Americans Use Bank Accounts.
variations by race and ethnicity in the chance of having a credit score card or bank personal loan have been gift at every income level. as an example, even amongst families with profits among $50,000 and $seventy five,000, sixty four.8 percent of Black households and 71.2 percentage of Hispanic families had a credit score card or bank personal loan, while eighty one.3 percentage of White households did so Fewer Americans Use Bank Accounts.
Use of hire-to-very own offerings and payday, pawn keep, tax refund anticipation, and vehicle identify loans all reduced between 2017 and 2021. about 1 percentage of families in 2021 used every product or service. the percentage of families that used at least one of the five products or services declined sharply from 7.four percentage in 2017, to 4.eight percentage in 2019, and to four.4 percentage in Fewer Americans Use Bank Accounts.
the share of unbanked families that used at the least one of the five services or products decreased drastically between 2017 and 2021. no matter this decline, use of those nonbank credit score products or services in 2021 persisted to be greater standard amongst unbanked households than among banked families.
Underbanked households Fewer Americans Use Bank Accounts.
An envisioned 14.1 percentage of U.S. families (approximately 18.7 million) were “underbanked” in 2021, that means that the family became banked and inside the beyond one year used at the least one of the following nonbank transaction or credit score services or products which might be disproportionately utilized by unbanked families to meet their transaction and credit needs Fewer Americans Use Bank Accounts.
money orders, test cashing, or global remittances (i.e., nonbank transactions) or
lease-to-very own offerings or payday, pawn shop, tax refund anticipation, or vehicle title loans (i.e., nonbank credit score) Fewer Americans Use Bank Accounts.
An envisioned eighty one.five percentage of U.S. families (about 107.nine million) have been “completely banked” in 2021, that means that the family changed into banked and inside the past three hundred and sixty five days did now not use any of the above nonbank transactions and credit score.
as the primary method of bank account get entry to, use of cellular banking turned into higher amongst underbanked families (forty eight.8 percentage) than among fully banked households (forty two.five percent). Use of on-line banking because the number one method of account access became much decrease amongst underbanked families (11.6 percentage) than amongst absolutely banked families (23.8 percentage). comparable proportions of underbanked households Fewer Americans Use Bank Accounts (15.zero percent) and completely banked families (14.nine percentage) used a financial institution teller because the number one technique of account access.

Almost all underbanked families (ninety six.1 percent) and fully banked households (97.three percent) used their bank money owed to pay payments or get hold of profits. however, even as eighty one.6 percent of fully banked families completely used their bank money owed to conduct these transactions, handiest 38.1 percentage of underbanked households did so Fewer Americans Use Bank Accounts.
Underbanked families have been much less likely to have a credit score card and have been much more likely to have both financial institution and nonbank private loans than absolutely banked families in 2021. for instance, 62.4 percentage of underbanked families had a credit score Fewer Americans Use Bank Accounts.
card, in comparison with 76.6 percent of absolutely banked families. One in ten underbanked households (10.0 percent) had a bank non-public mortgage, as compared with 8.zero percent of fully banked households. And five.6 percentage of underbanked families had a nonbank personal loan, in comparison with 2.four percent of completely banked households Fewer Americans Use Bank Accounts.
Implications Fewer Americans Use Bank Accounts:
The economic disruptions because of the COVID-19 pandemic created specific opportunities and demanding situations for monetary inclusion, some of which may be temporary, at the same time as others may be longer lasting. The importance of quickly receiving profits from financial effect payments or other authorities comfort programs created a unique bankable moment, Fewer Americans Use Bank Accounts.
Consumers benefitted from improved on line and cellular account opening technology and the greater availability of safe and low-cost financial institution debts. This aggregate of factors ended in meaningful gains in connecting households to the banking device Fewer Americans Use Bank Accounts.
fitness and safety worries regarding in-person interactions all through the pandemic can also have extended the long-time period fashion of increasing use of cell and online channels to get right of entry to monetary services and products, such as mobile banking and on line charge services. because the pandemic wanes, it will be critical to carefully reveal whether the shift from in-character hobby continues, stabilizes, or subsides Fewer Americans Use Bank Accounts.
beyond influences directly tied to the pandemic, the monetary services market continues to grow to be extra disaggregated, and purchasers are bundling services and carriers (financial institution and nonbank) in new and interesting approaches. This disaggregation may additionally offer more choices for clients however additionally can also make it extra tough for purchasers to surely Fewer Americans Use Bank Accounts.
distinguish differences between bank and nonbank products and to apprehend the protections to be had, together with deposit coverage. The financial inclusion implications of disaggregation on one of a kind segments of the population undergo further research and spotlight the need to examine more about how clients are navigating the choices provided to them via the evolving marketplace Fewer Americans Use Bank Accounts.
Enlarge implication Fewer Americans Use Bank Accounts:
Expand Despite financial challenges posed through the pandemic, greater consumers have become banked and sustained their banking relationship through economic distress. The importance of quick receiving authorities payments contributed to choices via many unbanked purchasers to open bank money owed. focusing on opportunities to attach purchasers to safe and affordable Fewer Americans Use Bank Accounts.
bank money owed when they’re receiving earnings and other government payments remains a promising economic inclusion method. improvements to online account commencing era deployed throughout the pandemic and the expanded availability of low-value debts in recent years additionally may also facilitate those banking efforts. Disruptions in profits had a smaller effect in exits from Fewer Americans Use Bank Accounts.

the banking device than previous survey consequences would possibly advocate, and further research is wanted to discover the motives for this smaller than expected impact, together with strategies banks used to assist low- and moderate-earnings (LMI) consumers navigate quick-term monetary shocks Fewer Americans Use Bank Accounts.