2011 FDIC National Survey of Unbanked and Underbanked

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

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 www. economicinclusion. gov 3

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

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

Banking Status www. economicinclusion. gov 6

Account Ownership 7 www. economicinclusion. gov

Timing of AFS Use * * 8

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

Unbanked by State www. economicinclusion. gov 10

Previous Banking Status www. economicinclusion. gov 11

Banking Status of Select Groups Select Demographic Groups Percent Fully Percent Unbanked Underbanked Banked All households 8. 2 20. 1 68. 3 Blacks 21. 4 33. 9 41. 6 Hispanics 20. 1 28. 6 48. 7 Foreign-born noncitizens 22. 2 28. 9 45. 8 Unemployed householder 22. 5 28. 0 47. 5 Income below $15, 000 28. 2 21. 6 47. 6 Unmarried female family households 19. 1 29. 5 48. 4 Under age 24 householder 17. 4 31. 0 49. 7 www. economicinclusion. gov 12

Income Distribution Unbanked Underbanked Fully Banked 13

Household Type Unbanked Underbanked Fully Banked 14 www. economicinclusion. gov

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

Accounts by Income www. economicinclusion. gov 16

Account Opening Plans 17 www. economicinclusion. gov

Account Opening Motivation www. economicinclusion. gov 18

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

Changes in AFS Use 20 www. economicinclusion. gov

Past 30 Days AFS Use www. economicinclusion. gov 21

Select AFS Use in Prior 30 Days www. economicinclusion. gov 22

Prepaid Debit Use by Banking Status www. economicinclusion. gov 23

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 www. economicinclusion. gov 24

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