2011 FDIC National Survey of Unbanked and Underbanked Households Keith Ernst Consumer Federation of America Financial Services Conference Washington, DC November 29, 2012
Terminology Unbanked: No one in the household has an insured checking or savings account. Underbanked: While the household has a checking or savings account, it also relied on alternative financial services in the last 12 months. 2
3 Introduction Primary focus –Banking status and alternative financial services use Strength in numbers –CPS affords detailed state and local results New insights –Account type & AFS timing
Economic Inclusion 4 Inclusive Banks Safe Savings and Transaction Accounts Constructive Credit Options Household & Community Success Confidence Strong System
5 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results
6 Banking Status
7 Account Ownership
8 Timing of AFS Use * *
9 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results
10 Unbanked by State
11 Previous Banking Status
12 Banking Status of Select Groups Select Demographic Groups Percent Unbanked Percent Underbanked Percent Fully Banked All households Blacks Hispanics Foreign-born noncitizens Unemployed householder Income below $15, Unmarried female family households Under age 24 householder
13 Income Distribution Unbanked Underbanked Fully Banked
14 Household Type UnbankedUnderbanked Fully Banked
15 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results
16 Accounts by Income
17 Account Opening Plans
18 Account Opening Motivation
19 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results
20 Changes in AFS Use
Past 30 Days AFS Use 21
22 Select AFS Use in Prior 30 Days
23 Prepaid Debit Use by Banking Status
24 Closing Thoughts Understanding segments better might increase the efficacy of economic inclusion strategies The previously banked are more likely to want to open an account Having a bank account does not guarantee long term participation in the banking system
25 economicinclusion.gov