2011 FDIC National Survey of Unbanked and Underbanked Households Keith Ernst Consumer Federation of America Financial Services Conference Washington, DC.

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Presentation transcript:

2011 FDIC National Survey of Unbanked and Underbanked Households Keith Ernst Consumer Federation of America Financial Services Conference Washington, DC November 29, 2012

Terminology Unbanked: No one in the household has an insured checking or savings account. Underbanked: While the household has a checking or savings account, it also relied on alternative financial services in the last 12 months. 2

3 Introduction Primary focus –Banking status and alternative financial services use Strength in numbers –CPS affords detailed state and local results New insights –Account type & AFS timing

Economic Inclusion 4 Inclusive Banks Safe Savings and Transaction Accounts Constructive Credit Options Household & Community Success Confidence Strong System

5 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

6 Banking Status

7 Account Ownership

8 Timing of AFS Use * *

9 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

10 Unbanked by State

11 Previous Banking Status

12 Banking Status of Select Groups Select Demographic Groups Percent Unbanked Percent Underbanked Percent Fully Banked All households Blacks Hispanics Foreign-born noncitizens Unemployed householder Income below $15, Unmarried female family households Under age 24 householder

13 Income Distribution Unbanked Underbanked Fully Banked

14 Household Type UnbankedUnderbanked Fully Banked

15 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

16 Accounts by Income

17 Account Opening Plans

18 Account Opening Motivation

19 Overall Results Banking Status Results Account Ownership Results AFS & Prepaid Debit Results

20 Changes in AFS Use

Past 30 Days AFS Use 21

22 Select AFS Use in Prior 30 Days

23 Prepaid Debit Use by Banking Status

24 Closing Thoughts Understanding segments better might increase the efficacy of economic inclusion strategies The previously banked are more likely to want to open an account Having a bank account does not guarantee long term participation in the banking system

25 economicinclusion.gov