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Underbanked

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Underbanked

Underbanked is a term used to describe individuals or households that have limited access to traditional banking services. This includes those who do not have a bank account, those who have a bank account but rely on alternative financial services, and those who have a bank account but still use alternative financial services. Underbanked individuals and households are often unable to access the full range of financial services offered by traditional banks, such as loans, credit cards, and investment products.

History of the Term

The term โ€œunderbankedโ€ was first used in the early 2000s to describe individuals and households who had limited access to traditional banking services. This term was used to describe those who did not have a bank account, those who had a bank account but relied on alternative financial services, and those who had a bank account but still used alternative financial services. The term was used to highlight the fact that these individuals and households were not able to access the full range of financial services offered by traditional banks.

Since then, the term has been used to describe a wide range of individuals and households who have limited access to traditional banking services. This includes those who are unbanked, those who are underbanked, and those who are overbanked. The term has also been used to describe those who are financially excluded, those who are financially underserved, and those who are financially vulnerable.

Comparisons

Group Access to Banking Services
Unbanked No access
Underbanked Limited access
Overbanked Excessive access

Summary

Underbanked is a term used to describe individuals or households that have limited access to traditional banking services. This includes those who do not have a bank account, those who have a bank account but rely on alternative financial services, and those who have a bank account but still use alternative financial services. Underbanked individuals and households are often unable to access the full range of financial services offered by traditional banks, such as loans, credit cards, and investment products. For more information about this term, you can visit websites such as the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and the Financial Industry Regulatory Authority.

See Also

  • Unbanked
  • Overbanked
  • Financial Exclusion
  • Financial Inclusion
  • Financial Vulnerability
  • Financial Literacy
  • Alternative Financial Services
  • Payday Loans
  • Check Cashing Services
  • Money Transfer Services

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