Reaching the Un-Banked and Under-Banked
The Fannie Mae Foundation estimates that 10 percent of American households are un-banked, totaling 23-56 million adults. BearingPoint estimates the under-banked population could be an additional 45 million people. It is estimated that the un- and under-banked population spends at least $10.9 billion a year on fees and charges to alternative financial service providers (AFS).
Credit unions are strategically well positioned to offer reasonably priced, basic financial services — such as check cashing, money orders, and most importantly, savings accounts — to help families who are currently un-banked or under-banked build savings and improve credit risk profiles. Reasonably priced short-term loan products with a savings component provide sensible alternatives to payday loans in a way that helps families manage their short-term credit needs and build a savings cushion for emergencies. In addition, financial literacy helps individuals build their first small assets and may also enhance trust, loyalty, and member retention for credit unions.
DFI wants to encourage credit unions in their strategic business planning process to consider including a specific outreach to un-banked and under-banked individuals and families that will provide alternatives to high cost and often predatory financial products. Below you will find resources and information for reaching out to the un-banked and the under-banked.
Free DVD of Northwest Regional Conference on Reaching Unbanked People
On March 27, 2007, DFI along with several federal agencies presented the Northwest Regional Conference on Reaching Unbanked People. Representatives of some of the most innovative financial institutions and organizations spoke about ways to reach underserved consumers in the Northwest.
The conference was video taped and is available on DVD free of charge. Request a free DVD copy.
Division of Credit Unions Conferences on Reaching Un-Banked and Under-Banked
The Division of Credit Unions, the National Credit Union Administration, and the Washington Credit Union League recently sponsored conferences on reaching the un-banked and under-banked. The conferences were repeated on three dates and in three locations across the state.
Below you will find presentation files used during the conferences.
- Reaching the Un-banked and Under-banked - Linda Jekel, Division of Credit Unions (PPT)
- Regulatory Barriers - Elizabeth A. Habring, NCUA (PPT)
- Underserved Areas in Washington - Annette Moore, NCUA (PPT)
- Serving the Unbanked - WCUL (PPT)
Resources
- Access to Banking for Immigrants - Washington State Data (PDF)*
- Unbanked to Homeowner: Improving Financial Services for Low-Income Customers (PDF)*
- Guide to Building Products and Strategies for Underbanked Markets (PDF)*
* This document is a PDF file, and you will need Adobe Acrobat Reader to view it. If you don't already have Acrobat Reader installed on your computer, you may download it for free from Adobe.
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