2024
9
US Unbanked and Underbanked Consumer Report 2024
2024-02-23T10:02:11+00:00
REP63D048E5_D2B5_4495_9774_0884A07DA720
3695
170812
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Report
en_GB
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…

US Unbanked and Underbanked Consumer Report 2024

£ 3,695 (Excl.Tax)

Description

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.

Key Topics Covered

  • Consumer reasons for being unbanked.
  • Top factors that would get the unbanked to open bank accounts.
  • Top financial challenges facing the un- and underbanked.
  • Attitudes and financial behaviors of the un- and underbanked.

The Un- and Underbanked Consumer: Strategic Insights

The unbanked consumer

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.

The underbanked consumer

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.

What’s Next for FIs and the Unbanked?

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.

Additional Features Included in Your Report

  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentations.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive library of market research reports.

Expert Analysis

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
Amr Hamdi
Finance Analyst

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Consumer trends: key takeaways
    • Graph 1: share of un- and underbanked consumers, by generation, 2024
    • Graph 2: key factors that would get the unbanked to open a bank account, 2024
    • Graph 3: planned account openings, by banking status, 2024
    • Graph 4: types of FIs underbanked consumers use most often, 2024
    • Opportunities
    • Graph 5: channels used to learn about personal finance, by generation, 2023
    • Graph 6: financial behaviors in the past year, by generation, 2023
  2. Consumer Insights

    • Consumer fast facts
    • Un- and underbanked consumers
    • Graph 7: share of unbanked consumers, by household income, 2024
    • Graph 8: reasons unbanked Black adults don’t have a bank account, 2024
    • Graph 9: share of unbanked consumers, by race and ethnicity, 2024
    • Reasons for not being banked
    • Graph 10: top reasons the unbanked don’t have a bank account, 2024
    • Graph 11: top reasons the unbanked don’t have a bank account, 2024
    • Motivations to opening a bank account
    • Financial challenges and future plans
    • Graph 12: top financial challenges, by banking status, 2024
    • Graph 13: top financial challenges, by banking status, 2024
    • Financial behaviors and attitudes
    • Graph 14: non-banks the un- and underbanked would open an account with, 2024
    • Graph 15: attitudes toward early paycheck access, by banking status, 2024
    • Graph 16: attitudes toward bank account opening, by banking status, 2024
    • Graph 17: importance of mobile experience when managing finances, by banking status, 2024
  3. Competitive Strategies

    • Marketing and advertising
  4. The Market

    • Market drivers
    • Graph 18: share of unbanked consumers, by employment status, 2024
    • Graph 19: top reasons the unbanked don’t have a bank account, 2024
  5. Appendix

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Interactive Databook

Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.

Custom Presentations

Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.

Browse our sample PDF report below:

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2024 Sample Consumer Cover

Please Note: All of the figures, graphs, and tables in this sample report have been redacted.

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