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2023 FDIC National Survey of Unbanked and Underbanked Households: FDIC

The FDIC is committed to expanding Americans' access to safe, secure, and affordable banking services, which is integral to the FDIC's mission of maintaining the stability of and public confidence in the U.S. financial system. One contribution to this end is the FDIC National Survey of Unbanked and Underbanked Households, or the “Household Survey.” In response to a statutory mandate, the survey has been conducted biennially since 2009, in partnership with the U.S. Census Bureau as a supplement to the Current Population Survey. The Household Survey collects information on bank account ownership and other financial products and services that households may use to meet their transaction and credit needs. The nationally representative survey is administered to approximately 30,000 U.S. households and yields findings that are representative for the 50 states and the District of Columbia. 

2023 Survey Results

All PDF files on this page reference Portable Document Format (PDF) files. Adobe Acrobat, a reader available for free on the Internet, is required to display or print PDF files.

Read more at The Federal Deposit Insurance Corporation (FDIC) 

From the FDIC NATIONAL SURVEY

• Between 2011—when the unbanked rate was at its highest level since the survey began in 2009—and 2023, the unbanked rate fell by almost half, corresponding to an additional 5.3 million banked households in 2023.

• In 2023, 4.2 percent of U.S. households—representing about 5.6 million households—were unbanked

• Unbanked rates were higher among lower-income households; less-educated households; Black, Hispanic, and American Indian or Alaska Native households; working-age households with a disability; households with income that varied a lot from month to month; and single-parent households.

• Unbanked rates among Black, Hispanic, and American Indian or Alaska Native households fell by about half between 2009 and 2023

• In 2023, almost half of banked households (48.3 percent) used mobile banking as their primary method of account access. Between 2009 and 2023, the unbanked rate among Black households decreased from 21.4 percent to 10.6 
• percent. 

• In 2023, half of all households (49.7 percent) were using online payment services at the time of the survey, up from 46.4 percent in 2021.

From the FDIC Survey

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Chase Ramps Up Its Community Banking Push. Can Local Brands Compete?

Chase is leaning into its community banking model nationwide, with major expansion plans on top of its existing campaign to open new branches in promising markets. Experts warn this is a wakeup call for other banks and their retail distribution strategies.

JPMorgan Chase is beginning to look like the player who walks into the casino with a big bucket of chips, approaches the roulette table, and puts something on everything.

That would be a slight exaggeration, especially after Jamie Dimon, chairman and CEO, told analysts in the third quarter earnings briefing about how much capital was not being deployed, in favor of stockpiling cash and waiting for the right, good opportunities.

Read more at The Financial Brand

30% of federal student loan borrowers have gone without food or medicine, CFPB finds

• Thirty percent of federal student loan borrowers say they've gone without food or medicine due to their monthly bills, the Consumer Financial Protection Bureau finds.
• In addition to skipping necessities, 38% of people with federal student loans said they carried credit card debt that they wouldn't have otherwise, the bureau found.
• Around 44% of borrowers said their education debt delayed when they could by a home, and 26% said the debt pushed back when they'd start a family.
• "It's clear that many borrowers are struggling with repayment," said CFPB Director Rohit Chopra.

Nearly a third, 30%, of federal student loan borrowers say they've gone without food or medicine because of their monthly bills.

That grim finding comes from a new survey by the Consumer Financial Protection Bureau, conducted between October 2023 and January 2024, and including more than 3,000 responses from people with an active or recently active student loan account.

Read more at CNBC

Advanced Account Validation: The Key to Payment Optimization 

With ACH payments processing over 31.5 billion transactions valued at $80.1 trillion in 2023, the importance of bank account validation cannot be overstated.  

For many organizations, the focus on validation may stem from a need to comply with Nacha regulations. While compliance is essential, businesses that view account validation solely as a regulatory obligation are missing out on the broader benefits that come with a more strategic approach. Fraudsters are becoming more sophisticated and basic validation methods may not be enough to protect against these evolving threats.  

By leveraging advanced account validation technologies, organizations can not only meet compliance requirements but also drive significant business value through enhanced fraud prevention, improved decision-making, and operational efficiencies. 

Read more at PaymentsJournal

Growth of renter households outpaced those choosing to own: Report

(NewsNation) — The number of renter households in the U.S. is growing at triple the rate of homeowner households as home costs outpace rent increases, according to Redfin. 

The number of renter households rose to a record 45.6 million, increasing 2.7% on an annual basis in the third quarter. Homeowner households grew to 86.9 million, a 0.9% increase.

Your paycheck may be larger in 2025, even if you don’t get a raise

“The median asking rent was up 0.6 percent year over year in September, but rents have remained largely flat for the past two years—becoming more affordable as wages grew at around 4 percent,” the report found.

NewsNation affiliate “The Hill” reported that swing-state voters experienced an outside housing cost burden. Housing prices in counties in Sun Belt Battleground states have doubled over the last five years, Washington Post analysis found.

Read more at NEWS NATION

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How States Can Help Workers Boost Their Financial Security: NCSL.ORG

As the population ages and the workforce evolves, portable benefits, paid leave and retirement savings programs show promise.

States face a range of short- and long-term challenges that are affecting the financial security of American workers.

In addition to stagnant wages and the rising cost of living, many workers lack access to important workplace benefits, including health care, paid leave and retirement savings. “An aging population and the rise of gig workers have added new challenges to states still struggling to recover from the pandemic,” says John Scott of The Pew Charitable Trusts. Scott, who directs Pew’s Retirement Savings Project, partnered with NCSL in August to host a preconference on financial security and the workforce at NCSL’s 2024 Legislative Summit in Louisville, Ky.

The half-day preconference provided a forum for policymakers to discuss retirement savings initiatives, portable benefits for gig workers, and paid leave and caregiving policies. Experts from AARP, the Aspen Institute, the American Retirement Association, the Shipt delivery service company, and legislators from both Washington and Utah provided a wealth of knowledge and expertise for attendees as they tackle these issues and explore the feasibility of legislative solutions in their states.

Read more at National Conference of State Legislatures

How the U.S. Financial Inclusion Strategy Might Impact Your Finances

The Treasury has set objectives for improving America's financial services – here’s what you need to know.

Key Takeaways

• The U.S. Department of the Treasury financial inclusion strategy outlines five objectives for improving financial literacy and wellness for Americans, especially in underserved communities.
• These goals serve as a guideline for government agencies and financial institutions, but time will tell how they translate into action.
• You can use the objectives outlined by the Treasury to set your own financial goals.
• On Oct. 29, 2024, the U.S. Department of the Treasury published its National Strategy for Financial Inclusion.

This government-led initiative is designed to promote access to affordable and appropriate financial services for all people, and particularly underserved or marginalized communities.

The NSFI encourages innovation in digital banking, enhances financial literacy, supports the development of microfinance institutions and seeks to create a regulatory environment that fosters competition and safeguards consumers.

Read more at MONEY.USNEWS.COM