Demographic Analysis of Unbanked Individuals

Household Income

• In the U.S., the majority of the unbanked population skew towards poorer households. 25.7 percent of households that do not operate any banking accounts earn less than $15,000 per annum. 12.3 percent of unbanked households earn between $15,000 - $30,000 per annum, while 5.1 percent earn between $50,000 - $75,000 per annum.

Education

• The majority of the unbanked Americans also skew towards adults with little or no college education. 22.4 percent of adults without a banking account do not possess a high school diploma. For 9.4 percent of such individuals, a high school diploma is their highest qualification. 5.1 percent possess some college education, while only 1.3 percent possess a college degree.

Race/Ethnicity

• The unbanked population in the U.S. skew heavily towards Black Americans and Hispanics. 16.9 percent of Black Americans do not operate a banking account. 14 percent of Hispanics are also not included in the financial service sector. On the other hand, only 2.5 percent of Asians, and 3 percent of White Americans do not own a banking account.

Gender

• There is an equal proportion of male to female unbanked adults in the United States. According to the World Bank, there's no gap between male and female ownership of banking accounts in the US.

Age

• According to the latest statistics provided by the FDIC, 10 percent of individuals between the ages of 15 -24 do not own a banking account. Similarly, 8.5 percent of individuals between the ages of 25 -34; 7.8 percent of individuals between the ages of 45 -54; and 6.9 percent of individuals between the ages of 54 -64 do not operate a banking account in the U.S.

Geography

• A significant proportion of unbanked individuals reside in the south-eastern region of the U.S. The states with the highest proportion of unbanked adults include Texas, Louisiana, New Mexico, Oklahoma, and Mississippi.