Definition

The unbanked are adults who do not have their own bank accounts. Along with the underbanked, they may rely on alternative financial services for their financial needs, where these are available.

What is 'Unbanked'

A slang term for people who do not use banks or banking institutions in any capacity. Unbanked persons generally pay for things in cash or else purchase money orders. Unbanked persons also typically do not have insurance, pensions or any other type of professional money-related services.

Explaining 'Unbanked'

People can choose to be unbanked for many reasons. Criminals avoid using financial institutions because law enforcement officials can track their actions in their accounts. Older people who survived the Great Depression may have a deep distrust of all financial institutions and therefore do not use them. Extremely poor individuals may also have no need for the banking system as they try to survive their day-to-day lives.

Further Reading

The unbanked: evidence from Indonesia
academic.oup.com [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …

Can mobile phones really work to extend banking services to the unbanked? Empirical lessons from selected Sub-Saharan Africa countries
worldscholars.org [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …

How effective is lifeline banking in assisting the'unbanked'?
papers.ssrn.com [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …

Blockchain entrepreneurship opportunity in the practices of the unbanked
www.sciencedirect.com [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …

Banking the unbanked: What do 255 million new bank accounts reveal about financial access?
papers.ssrn.com [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …

'All data is credit data': Constituting the unbanked
journals.sagepub.com [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …

Banking unbanked immigrants through remittances
ideas.repec.org [PDF]
… the targeting of low income, previously unbanked indivduals, make it an important case for … new light on the channels through which access to finance for low-income individuals promotes economic development, namely by fostering the survival and creation of informal …