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COVID-19 CASH HEIST: Unprecedented Banking Rate Despite Pandemic
In a shocking turn of events, nearly 96% of US households were banked in 2021, despite unprecedented economic challenges posed by the COVID-19 pandemic. The latest national survey released by the Federal Deposit Insurance Corporation (FDIC) reveals a record low six million households remain unbanked.
The FDIC’s 2021 National Survey of Unbanked and Underbanked Households found that an estimated 4.5% of US households, or 5.9 million households, lacked a bank or credit union account, the lowest national unbanked rate since the FDIC survey began in 2009. Meanwhile, 14.1% of households, or 18.7 million, were underbanked, meaning they had a bank or credit union account but used nonbank financial products and services.
According to FDIC’s latest biennial survey, approximately 1.2 million more households were banked since 2019. Nearly half of newly banked households that received government payments said these payments contributed to their decision to open an insured bank or credit union account.
“During the pandemic, consumers opened bank accounts to access relief funds and other benefits quickly and securely,” said FDIC Acting Chairman Martin J. Gruenberg. “Safe and affordable bank accounts provide a way to bring more Americans into the banking system and will continue to play an important role in advancing economic inclusion for all Americans.”
The FDIC survey also found that unbanked and underbanked rates remain higher among minorities. In 2021, 2.1% of White households were unbanked, compared with 11.3% of Black households and 9.3% of Hispanic households. While this gap is sizable, it is notably smaller than just two years prior when the unbanked rate in 2019 among White households was 2.5% compared to 13.8% and 12.2% among Black and Hispanic households, respectively.
The FDIC survey has been conducted since 2009, and the results highlight the importance of ensuring consumers who are receiving benefits or starting a new job, two key bankable moments, can easily find and open a bank account that meets their needs.
In conclusion, the COVID-19 pandemic has presented unprecedented economic challenges, but the banking system has shown remarkable resilience. The record low unbanked rate is a testament to the importance of accessible and affordable banking services for all Americans.
Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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