As of last year, 40% of adults age 18+ are personally unbanked. Notably, this represents an increase of 13% from 2005 and an increase of 9% from 2009, which suggests that more and more people are either unserved by traditional banking institutions or are finding competitive alternatives to traditional banking, according to “Unbanked and Underbanked Consumers in the U.S., 3rd Edition,” a report by market research publisher Packaged Facts.
The report reveals that the tendency to self-identify as unbanked strongly increases as household income decreases. More than half of adults with household incomes under
Young Millennial adults ages 18-24 are among the most likely to now seek alternatives to traditional banking, as the percentage of those who self-identity as unbanked has grown 25% between 2005-2013. Packaged Facts attributes the increase to recession-driven unemployment and wage trends that have disproportionately affected younger entrants to the job market, with diminished job prospects and wage issues dampening need for bank accounts. However, it also suggests that a generational shift away from traditional banking relationships among Millennials may be underway, as these young consumers adapt to newer forms of alternative banking, led by the likes of “non-bank” funding accounts (i.e. PayPal) and reloadable prepaid cards.
For more information on “Unbanked and Underbanked Consumers in the U.S., 3rd Edition,” please visit http://www.MarketResearch.com or http://www.packagedfacts.com/redirect.asp?progid=86001&productid=7546427.
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