Who are the unbanked and why are they bankless?
The banking system does not include nearly 10 million American households, and in some low-income areas, more than half of the residents don’t have bank accounts. The main demographics of unbanked are households with low or unstable incomes, those in a poorer area of cities with less access to banks, less-educated, younger people, Black and Hispanic people, immigrants, and working-age disabled people. For those with lower incomes, check cashing and other similar services may be less costly than the fees and minimums charged by banks. Many don’t trust banks or don’t understand banking. Some simply don’t have access to a bank due to lack of transportation, inconvenient hours, or they don’t have specific documents that banks require.