Quantcast
Channel: Coopera Blog » underbanked
Viewing all articles
Browse latest Browse all 10

Five Reasons Consumers are Unbanked

0
0

For many people – especially those of us working in the financial services industry – it can be difficult to understand why someone would not have a bank account (or if they do, why they would still use costly alternative financial services). Yet, legitimate and systemic reasons for a lack of traditional financial relationships offer a glimpse into the “why’s” behind our nation’s underserved communities.

At the recent 2014 CUNA Community Credit Union and Growth Conference, credit union leaders and I dug into the question “Why Are Consumers Unbanked” to uncover strategies that may help the movement better serve these individuals.

Below are just five of the “why’s” we discussed:

Misperceptions about money persist
Underserved consumers report feeling they do not have enough money for a bank account.

Geography plays a role
Consumers in five states in particular are more likely to be unbanked and underbanked – Mississippi, District of Columbia, Georgia, Kentucky and Texas.

Culture can be a driver
Nearly one out of two Hispanics are unbanked or underbanked.

Past behavior predicts future
Households that have previously had a bank account are less likely to report they do not need an account or to use alternative financial services.

Language barriers are real
Nearly 20 percent of Spanish-speaking, unbanked, foreign-born non-citizens cite “account opening requirements” as the main reason they do not have an account.

For credit unions, we discussed, there exists a great opportunity to provide a better alternative for these individuals. That’s because everyone has financial service needs – almost daily. Take a look at the five “why’s” above and ask yourself if your cooperative can address any or all of these for your local unbanked and underbanked community.


Viewing all articles
Browse latest Browse all 10

Latest Images

Trending Articles





Latest Images