By Ruder Ware Alumni
November 2, 2016
On October 20, 2016, the FDIC released a report on the use of the traditional banking system in the United States. According to the report, in 2015, less than 4 percent of Wisconsin households were “unbanked” while nationally the average fell to 7 percent, the lowest percentage on record.
An “unbanked” household is one that includes no members with a checking or savings account.
The FDIC cited several reasons why some households remain unbanked, the most common of which was the cost of maintaining an account, with an estimated 37.8% of individuals citing cost as the main reason underlying their decision not to maintain an account. As one might expect and consistent with past FDIC survey results, the report notes that unbanked and underbanked rates are higher among lower-income households, less-educated households, younger households, minority households, and working-age disabled households.
However, the report also notes that increases in technology have made a marketable difference and will continue to lower the barrier and expand the opportunity for “economic inclusion” and financial literacy to those currently going unbanked.
Read the full FDIC report here.
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