CFED Assets & Opportunity Scorecard
Percentage of households that have a checking and/or a savings account and have used non-bank money orders, non-bank check cashing services, non-bank remittances, payday loans, rent-to-own services, pawn shops, or refund anticipation loans (RALs) in the past 12 months, 2011.
This measure describes the percentage of households that have a mainstream account but use alternative and often costly financial services for basic transaction and credit needs. Approximately 79% of underbanked households use non-bank money orders, while 31% use check cashing services, meaning they spend a significant amount on services for which most Americans pay little to nothing. Underbanked households are also more prone to loss or theft and face challenges in building credit and achieving financial security compared to banked households. Overall, use of alternative financial services has become more prevalent since 2009, with larger proportions of households of different ages, education levels, race/ethnicity and family type all reporting greater use of alternative financial services. When combined with the rate of unbanked households, this measure can paint a broad picture of which states have more households that are financially underserved.
For more information on the underbanked, see the Center for Financial Services Innovation, FDIC's economicinclusion.gov and joinbankon.org, where you can also find estimates of the underbanked at the local level.
2011 FDIC National Survey of Unbanked and Underbanked Households. Washington, DC: Federal Deposit Insurance Corporation, 2012.