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Special Report: Unbanked and Underbanked
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Unbanked and Underbanked
Presentations and Conferences
Presentation by John M. Reich, Director, Office of Thrift Supervision, at the 2nd Annual Underbanked Financial Services Forum, sponsored by the Center for Financial Services Innovation, June 12, 2007, Dallas.
His comments:
While estimates on the number of Americans who are unbanked or underbanked vary, the Federal Reserve has estimated that up to 10 percent of American families are unbanked. A January 2007 study based on U.S. Census data indicates that:
- 14 percent of U.S. born white families are unbanked, compared to
- 46 percent of U.S. born black families;
- 34 percent of U.S. born Hispanic families; and
- 34 percent of U.S. born families of other racial groups.
Among immigrant groups, 53 percent of Mexican immigrant families were unbanked, compared to 37 percent of other Latin American immigrant families, 20 percent of Asian immigrant families and 17 percent of European immigrant families.
Such data highlight the presence of a significant emerging market for financial services that financial institutions are increasingly pursuing – as evidenced by the growing percentage of minorities who are purchasing their own homes. >>more
"Tapping the UnBanked Market" Symposium, sponsored by FDIC, November 5, 2003.
Overview:
An estimated 10 million American households are "unbanked" or "underbanked" -- they do not have accounts at banks and other mainstream financial institutions. Unfortunately, as a result, these cash consumers pay excessive fees for basic financial services, are susceptible to high-cost predatory lenders, or have difficulties buying a home or otherwise acquiring assets. To help increase awareness of these problems, to promote practical solutions, and to explain the benefits of bringing the unbanked into mainstream financial services, the FDIC hosted a symposium at the National Press Club in Washington, D.C., on November 5, 2003. The topic of the symposium was "Tapping the Unbanked Market: Helping People Enter the Financial Mainstream." The symposium dealt with attracting and retaining customers from the unbanked population, and ways to form meaningful partnerships in the community. >>more
Underbanked Financial Services Forum, sponsored by Center for Financial Services Innovation, June 2006. (The 2007 Forum was held last month in Dallas).
2006 Overview:
Increasingly, the financial services industry is considering the potential of underbanked consumers, as demonstrated by the sold out crowd of over 400 attendees at the Underbanked Financial Services Forum, held in June 2006 and produced by CFSI and SourceMedia. The diverse audience, with representation from banks, credit unions, check cashers, vendors and nonprofits, came together to discuss opportunities, trade notes and find partners for reaching out to underbanked markets. The resonating themes from the Forum are detailed in this paper. In addition, the paper examines how a post-conference survey of participants yielded new insights into the perceived opportunities and challenges in serving the market. Taken together, the learnings and survey findings should help shape the work and discussions going forward regarding the opportunity to serve the underbanked. >>more