Our focus this weekend is on underbanked and unbanked individuals defined as such:
Underbanked: are people, businesses, or geographic areas with insufficient access to banks, or mainstream financial services normally offered by retail banks. These populations may have a strong reliance on non-traditional forms of finance and banking. They may use cash, wire transfers, cashiers checks, money-orders, lay-a-way, payday lenders, rent-to-own, micro-loans, loan sharks, and pawnbrokers to name a few ways to operate in the economy. Why? Some reasons why a person may be underbanked: language barrier (ex: immigrants, migrant workers), unable to access facilities due to distance/geographic (ex: elderly, rural areas), uncomfortable using technology to bank (internet, mobile, ATM)
Unbanked: are adults who do not have their own bank account. Much like the underbanked, they may rely on alternative financial services. Unbanked person exist around the world in every country, this is not a third world or developing country issue. In the U.S.A. there exist places where over 40% of residents are unbanked. The majority are American-born while a growing number are immigrants where the two groups have low income as a commonality and lack the minimum balance to open checking and savings accounts.