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
Collapse All
-
- Key issues covered in this Report
-
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
-
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
-
Competitive Strategies
- Marketing and advertising
-
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
-
Appendix
Mintel: Market Intelligence Made Easier
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
- Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
- Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
- Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
- Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.
What goes into a Mintel Market Intelligence Report?
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
The Four Pillars of Our Research
We use a combination of four main research methods when creating our reports, each adding a valuable perspective:
- Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
- Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
- Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
- Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.
For further information about our research and analysis methods, visit our helpdesk.
Bringing It All Together
Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
For a closer look at a Mintel Market Intelligence Report, take a look at the sample PDF report below:
Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
£ 3,695 (Excl.Tax)
-
Download today with instant access
Pay via credit card or purchase order
-
Multiple formats provided
We send a PDF, Powerpoint and Excel Databook straight to your inbox. An interactive version of the report is also available on our online platform
-
Interactive databook included
Focus on the data that matters most to you with a customisable databook avaliable on our platform
-
Save 10% on all orders with the code INSIGHTS2026
Offer available until the end of December only
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn moreTrusted by global industry leaders
One of the biggest challenges we face is the need to get smart on a business or category real quick.
We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.
We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.
Jeff White, Business Development Director, Deutsch
We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.
Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.
Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
Abby Carvosso, Group Managing Director, Bauer Media Group
Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.
When carrying out background research, I find Mintel an excellent starting point.
The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.
Ben Zeidler, Director - Research and Analytics, Tenth Wave
Mintel is really good for getting a handle on a particular category quickly. If we are working on a new business pitch in an area we don’t have much experience in, it’s a brilliant way to get up to speed with what’s going on, what’s changing and what the key trends are in any category.
It’s very rare now that anyone will plough through a 200-page report – that’s why the summaries are really useful. We know they are backed up by a lot of detail, so if you need to go into something in more depth you know the information will be all there for you.
Pauline Robson, Managing Partner, Mediacom
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn more
