What you need to know
The un- and underbanked are more vulnerable to economic uncertainty, and the COVID-19 pandemic will have made it much more difficult for many of these folks to make ends meet. Further compounding matters, Hispanic and Black consumers are both more likely to be un- and underbanked and more likely to suffer worse health outcomes from COVID-19. Banks and financial brands that say “we’re all in this together” now have a golden opportunity to help make a real difference.
Key issues covered in this Report
The impact of COVID-19 on un- and underbanked consumers
Ramifications of a COVID-19-induced recession
Rationale for being unbanked
Financial challenges, attitudes, and behaviors of the un- and underbanked
Writing for this Report was completed on August 5, 2020.
Definition
For the purposes of this Report, Mintel has used the following definitions for the un- and underbanked, which comport with those established by the FDIC (Federal Deposit Insurance Corporation):
Unbanked: those individuals who do not have a bank account
Underbanked: individuals who have an account at an insured institution, but also obtained one of the following financial products from an non-bank provider in the past 12 months:
money orders
check cashing
international remittances
payday loans
refund anticipation loans
pawn shop loans
auto title loans.
