A small section of the population has no bank or transaction accounts of any kind. They're called the unbanked, and they rely seriously on cash transactions and alternative financial providers to make their way in the world. There are also more of them annually, according to a recent FDIC survey.
Many not banking
Many people think that an individual or a family absolutely has to have a banking account to be able to financially survive life in these United States. It is not as far-fetched as one might believe, as some people are paid in and conduct all transactions with cash, sometimes for nefarious reasons.
In the past, there have been a ton of mistakes made by the financial system in the country, and that is why a lot of people are just entirely against the system. They only avoid a bank account because they are steering clear of the system.
They are called the "unbanked," according to CNN, and their numbers are increasing. It is estimated that almost 10 million people are now unbanked.
FDIC study finds ranks growing
The unbanked and underbanked, or people who use check cashers and payday loans rather than banks, were both looked at in a Federal Deposit Insurance Corporation study in 2009.
About 9 million people, or 7.7 percent of households in the country, did not have accounts. There was a massive increase to when the survey was updated in 2011 to 8.2 percent of the country, which consists of 10 million households or 17 million adults, according to Businessweek.
There was a study done by Fox Business that showed many people really use other providers for their accounts. Only 88.5 percent of households have a checking account and 69.2 percent have a savings. The extra accounts elsewhere make up the main difference.
Reasons for it
According to CNN, approximately 33 percent of respondents in the FDIC's survey of the unbanked reported not having enough cash on a regular basis to maintain a bank account. A further 21 percent reported neither wanting nor needing a banking account; 7.7 percent reported not wanting to deal with banks and 5.4 percent reported that minimum balances were too high or that charges were too costly, or both.
A further 6.6 percent reported having a negative history with banks or lacked proper identification needed to open an account and 6.4 percent of respondents had an account closed by a bank due to overdrafts or overdue charges.
The unbanked still use other option financial services. In fact, 18 percent said they had used a prepaid card for cash. About 59 percent used a check casher, pawn shop or payday lender in the last year while 12 percent had done it in the last 30 days, according to Fox Business.
Many not banking
Many people think that an individual or a family absolutely has to have a banking account to be able to financially survive life in these United States. It is not as far-fetched as one might believe, as some people are paid in and conduct all transactions with cash, sometimes for nefarious reasons.
In the past, there have been a ton of mistakes made by the financial system in the country, and that is why a lot of people are just entirely against the system. They only avoid a bank account because they are steering clear of the system.
They are called the "unbanked," according to CNN, and their numbers are increasing. It is estimated that almost 10 million people are now unbanked.
FDIC study finds ranks growing
The unbanked and underbanked, or people who use check cashers and payday loans rather than banks, were both looked at in a Federal Deposit Insurance Corporation study in 2009.
About 9 million people, or 7.7 percent of households in the country, did not have accounts. There was a massive increase to when the survey was updated in 2011 to 8.2 percent of the country, which consists of 10 million households or 17 million adults, according to Businessweek.
There was a study done by Fox Business that showed many people really use other providers for their accounts. Only 88.5 percent of households have a checking account and 69.2 percent have a savings. The extra accounts elsewhere make up the main difference.
Reasons for it
According to CNN, approximately 33 percent of respondents in the FDIC's survey of the unbanked reported not having enough cash on a regular basis to maintain a bank account. A further 21 percent reported neither wanting nor needing a banking account; 7.7 percent reported not wanting to deal with banks and 5.4 percent reported that minimum balances were too high or that charges were too costly, or both.
A further 6.6 percent reported having a negative history with banks or lacked proper identification needed to open an account and 6.4 percent of respondents had an account closed by a bank due to overdrafts or overdue charges.
The unbanked still use other option financial services. In fact, 18 percent said they had used a prepaid card for cash. About 59 percent used a check casher, pawn shop or payday lender in the last year while 12 percent had done it in the last 30 days, according to Fox Business.
No comments:
Post a Comment