This report explores the “why” behind unbanked and underbanked consumers and offers strategies for financial institutions (FIs) to encourage an equitable and inclusive banking system. Using consumer data, the analysis in this report can elevate FI insights to better understand and act upon reasons for, and obstacles causing consumers to be unbanked or underbanked.
Below, we’ve provided the key topics covered and hand-selected findings from the full document.
More than one in 10 have no checking or savings accounts (i.e. are unbanked). Many traditional FIs are yet to follow newer online-only banks in providing fee-free banking, which makes the pain point of affordability a key issue for consumers. Inconvenient branch location is also a rising reason for being unbanked, with branch closures resulting from digitization causing challenges, particularly for rural customers. FIs that have engaged customers with pop-up branches have seen success.
Over half of the underbanked are Millennials, making them significantly more underbanked than other generations. Many Millennials live a reactionary banking life, relying on stop-gaps like payday loans to make ends meet. Providing small-dollar loans has been a welcome development when compared to predatory lending, and there is an opportunity for brands to couple this with financial wellness check-ups. FIs can gain real consumer trust and loyalty with these kinds of offerings.
Looking ahead to the future, the large number of unbanked Gen Z represents an opportunity for brands to consider their forward-thinking strategies. Potentially looking at their first banking experience, sign-up incentives alongside affordable banking options can be a reliable way to get the attention of this younger generation.
Buy your copy of this report and gain a 360-degree understanding of the unbanked and underbanked consumer, and what your brand can do to respond in favor of consumers. You may also be interested in our other financial services market research.
Leading finance analyst Amr Hamdi delivers expert industry insights with this in-depth report.
FIs must continue working to bridge the gap between mainstream financial services and the un- and underbanked to ensure an equitable and inclusive banking system.
Amr Hamdi
Finance Analyst
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