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Only 4% of US Households Are Unbanked

The percentage of households in the United States that are unbanked declined to a record low in 2023.

At 4.2% of U.S. households, or 5.6 million, the percentage of households without a bank or credit union account was the lowest since the Federal Deposit Insurance Corp. (FDIC) launched its biennial National Survey of Unbanked and Underbanked Households in 2009, the regulator said in a Tuesday (Nov. 12) press release.

The highest unbanked rate was recorded in 2011, when it stood at 8.2%, according to the release.

While the rate has improved, it remains higher among some categories of households, per the release.

“This survey reveals that significant disparities in access to the banking system for minority, lower income, disabled and single-parent households still exist and need to be addressed,” FDIC Chairman Martin J. Gruenberg said in the release.

The FDIC also found that 14.2% of U.S. households, or 19.0 million, were underbanked in 2023, meaning they had a bank or credit union account but primarily used nonbank products and services.

Read more at PYMNTS.COM

'Underbanked' households more likely to own crypto, FDIC report says

Nov 12 (Reuters) - American households that rely on services like check cashing and payday loans to make ends meet are more likely to hold cryptocurrencies, with all the risks they bring, than those who have more access to traditional banks, according to a government report released Tuesday.



The report from the U.S. Federal Deposit Insurance Corporation also showed that one in eight shoppers using buy-now-pay-later (BNPL) services had made a payment late or missed it on at least one purchase.

The findings are contained in the latest periodic survey of "underbanked" and "unbanked" households: those with little or no access to traditional banking.

The FDIC surveyed 30,000 households in June 2023 as part of a series of surveys begun in the wake of the global financial crisis that began in 2007.

The share of households deemed "unbanked," or those that did not use any checking or savings accounts, has fallen by about half since 2011 to 4.2%, or 5.6 million households, according to the survey.

Read more at REUTERS

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Bringing more banking to north St. Louis County is more than opening a new branch

DELLWOOD — On a sunny September morning last year, hundreds of people gathered in the parking lot of a strip mall that sat vacant for years.

The crowd was eager for the official opening of the R&R Marketplace, which finally filled the space with a host of services designed to boost economic access in and around the small north St. Louis County municipality.

One of those was a new branch from Midwest BankCentre. At the time, bank Chairman and CEO Orvin Kimbrough noted the financial landscape his organization had chosen to move into.

There were dozens of payday loan establishments within five miles, he said.

“There’s one right there within eyesight of me,” Kimbrough said, gesturing from the podium he was speaking from. “One of our objectives of opening up this facility … we want to put them out of business.”

Read more at NPR

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Americans’ Reliance on Mobile Banking, Short-Term Funding Climbs

(Bloomberg) -- Of American households with bank accounts — and that’s nearly all of them — a record 48.3% primarily use their mobile phones for routine banking, according to new data from the Federal Deposit Insurance Corp. Combined with those who prefer a computer or tablet, more than two out of three US households preferred digital banking in 2023. 

The FDIC reported the continued increase for mobile services in its Survey of Unbanked and Underbanked Households, a biennial measurement of how Americans use banking and financial services that is part of the agency’s goal to “expand economic inclusion.”  

Despite the growing popularity of mobile banking overall, the agency noted that older households and lower-income households were less likely to bank via smartphone. “While many of these households are already banked, they may become disengaged if they are perceived to be unwilling or unable to keep up with technological advancements in banking,” the FDIC wrote, cautioning banks against catering too much to early adopters.

Read more at BNNBLOOMBERG.CA

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FDIC Survey Shows 5.6 Million Unbanked Households, But Only 1.6 Million Want Accounts

Millions of Americans do not have a bank account. Known as the “unbanked,” these Americans are often referred to in discussions of financial inclusion. As it stands, the latest survey from the Federal Deposit Insurance Corporation shows that there are currently 5.6 million unbanked households. However, as policymakers read the survey and begin to craft responses, they should take note of all of the data provided rather than the total number of unbanked households alone.

Given that more than 70 percent of the unbanked routinely say they are uninterested in having a bank account, perhaps it is time to redefine the term “unbanked.”

To understand why this distinction is necessary, first consider a more familiar statistic: the unemployment rate.

Read more at CATO.ORG

Has CFPB Started a War Over Open Banking — or Created New Opportunities for Banks?

The same day that the Consumer Financial Protection Bureau unveiled its final personal financial data rule, the banking industry sued to stop the bureau's controversial take on open banking. Then Donald Trump regained the White House. Should institutions wait to see what happens after the smoke clears? Or should they exploit opportunities that may benefit early adopters?

The banking industry and the Consumer Financial Protection Bureau have two very different viewpoints about “open banking.”

The industry and the CFPB have been circling and skirmishing for a couple of years over rulemaking. Now a major battle is looming over the result, even as some think it’s time for banks to simply acquiesce and figure out how to profit from an inevitability.

Read more at The Financial Brand

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Women Without Children Have as Much Wealth as Single Men: PEW

In the United States, households headed by married adults have much more wealth, on average, than those headed by single adults. And among unmarried adults, there’s a significant wealth gap between men and women.

In 2022, the typical single man had $82,100 in wealth, compared with $58,100 for the typical single woman, according to U.S. Census Bureau data.

But among unmarried women, wealth varies considerably between those who have children under 18 in the household and those who don’t.

Households headed by unmarried women who do not have children under 18 had a median wealth of $87,200 in 2022 – similar to households headed by unmarried men. In contrast, the median wealth of households headed by unmarried women with children was $10,700.

Read more at PEW RESEARCH

2024 Overtime Rule Update: How RTO Dealers Need to Prepare for 2025: APRO

Join APRO Wage and Hour Attorney Brian Farrington for an important webinar on the Department of Labor’s overtime rule changes. This webinar is designed for rent-to-own dealer owners and HR professionals, breaking down the latest changes and impact on your business.

Starting January 1, 2025, the overtime salary threshold for exempt executive, administrative, and professional employees will increase substantially. Hear what this new rule means for your business, learn tips and actions to stay compliant with FLSA requirements, and help ensure your payroll practices are ready for 2025. Don’t miss this opportunity to prepare your team and protect your business.

Read more at RTOHQ.ORG