1. 2011 FDIC National Survey of Unbanked and Underbanked Households Keith Ernst Consumer Federation of America Financial Services Conference Washington, DC November 29, 2012

2. 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. 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 www.economicinclusion.gov

4. Economic Inclusion 4 Inclusive Banks Safe Savings and Transaction Accounts Constructive Credit Options Household & Community Success Confidence Strong System

5. 5 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

6. 6 Banking Status www.economicinclusion.gov

7. 7 Account Ownership www.economicinclusion.gov

8. 8 Timing of AFS Use * *

9. 9 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

10. 10 Unbanked by State www.economicinclusion.gov

11. 11 Previous Banking Status www.economicinclusion.gov

12. 12 Banking Status of Select Groups Select Demographic Groups Percent Unbanked Percent Underbanked Percent Fully Banked All households 8.2 20.1 68.3 Blacks 21.433.941.6 Hispanics 20.128.648.7 Foreign-born noncitizens 22.228.945.8 Unemployed householder 22.528.047.5 Income below $15,000 28.221.647.6 Unmarried female family households 19.129.548.4 Under age 24 householder17.431.049.7 www.economicinclusion.gov

13. 13 Income Distribution Unbanked Underbanked Fully Banked

14. 14 Household Type UnbankedUnderbanked Fully Banked www.economicinclusion.gov

15. 15 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

16. 16 Accounts by Income www.economicinclusion.gov

17. 17 Account Opening Plans www.economicinclusion.gov

18. 18 Account Opening Motivation www.economicinclusion.gov

19. 19 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

20. 20 Changes in AFS Use www.economicinclusion.gov

21. Past 30 Days AFS Use 21 www.economicinclusion.gov

22. 22 Select AFS Use in Prior 30 Days www.economicinclusion.gov

23. 23 Prepaid Debit Use by Banking Status www.economicinclusion.gov

24. 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 www.economicinclusion.gov

25. 25 economicinclusion.gov