Ninety-six percent of U.S. households were banked last year, according to an FDIC survey.
According to the survey, 4 percent of households didn’t have a bank or credit union account. Single-parent, disabled, Black, Hispanic, less-educated and lower-income households were disproportionately unbanked. Two-thirds of unbanked households relied entirely on cash, according to the report, while one-third used a combination of prepaid cards or nonbank online payment services. Fourteen percent of households were underbanked last year, meaning they had a bank or credit union account but mainly used nonbank products and services.
“Access to safe, affordable bank accounts is fundamental for consumers to be able to participate in and benefit from our nation’s economy,” said FDIC Chair Martin Gruenberg. “This survey reveals that significant disparities in access to the banking system for minority, lower income, disabled, and single-parent households still exist and need to be addressed.”
According to the report, the number of unbanked Americans reached a record high of 8.2 percent in 2011, falling by nearly half to 4.2 percent last year. The FDIC and U.S. Census Bureau have conducted the biennial survey since 2009.
Other report findings included:
- Nearly half of banked households used mobile banking as the primary way to access their accounts. That number has increased nearly ninefold over the past decade, while the use of bank tellers fell more than 50 percent and the use of online banking dropped more than one-third.
- Seventy-six percent of households had a credit card last year, while one-in-six households didn’t have access to mainstream credit, down from 20 percent in 2017.
- The use of PayPal, Venmo and Cash App increased between 2021 and 2023, while the use of general purpose reloadable prepaid cards fell.
- Four percent of households used ‘buy now, pay later’ in the past 12 months.
- Five percent used crypto or digital assets to store and transfer money last year. Ninety-three percent held the products as an investment, while only 4 percent used them as payment.
American Bankers Association President and CEO Rob Nichols said the report reflected well on the banking industry, noting most Americans live near multiple bank branches. Banks have also invested in technology to allow customers to access their account from anywhere, he added.
“Our industry has worked in close collaboration with a range of stakeholders to expand access to banking services, and those important efforts will continue to ensure that everyone in the country — regardless of their socioeconomic status — can enjoy the safety, security and opportunities that come with a bank account,” Nichols said.
