Unbanked
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 importance of check-cashing businesses to the unbanked: Racial/ethnic differences
www.mitpressjournals.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 …
www.mitpressjournals.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 …
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 …
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 …
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 …
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 …
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 …
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 …
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 …
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Q&A About Unbanked
Who are unbanked persons?
Criminals, older people, and extremely poor individuals are examples of unbanked persons.
Why did most of these people remain unbanked?
Many remain unbanked because they lack the necessary documentation or collateral required by banks as well as due to their distance from banks or other financial institutions.
Where do most of these unbanked individuals live?
Most of these individuals live in developing countries where there is less infrastructure for banks and other financial institutions.
What does the term "unbanked" mean?
Unbanked refers to people who do not use banks or banking institutions in any capacity.
How many adults were estimated to be unbanked in 218?
It was estimated that about 1.7 billion adults lacked a bank account in 218.
Why might older people be unbanked?
They may have a deep distrust of all financial institutions and therefore do not use them.
Who are underbanked?
Underbanked individuals have limited or no access to banking products and services even though they have an account at a formal financial institution.
What does financial inclusion refer to?
Financial inclusion refers to the availability and equality of opportunities to access financial services.
Who is typically unbanked?
Those who are unbanked typically include women, poor people in rural areas, and those who face discrimination.
Why might extremely poor individuals be unbanked?
Because they try to survive their day-to-day lives without using banks.
Why might criminals be unbanked?
Because law enforcement officials can track their actions in their accounts.