This issue brief provides recommendations for federal policymakers to engage with the financial services industry to bring millions of un- and underbanked consumers into the financial mainstream. While as many as 22 million American families are “unbanked,” meaning they lack basic checking or savings accounts, millions more are “underbanked,” meaning they may own accounts but still rely on alternative financial service providers, such as check-cashing outlets. The issue brief is divided into five parts to answer the key questions about this untapped market: 1) Why is an inclusive financial system important? 2) Who are the unbanked and what keeps them out of the financial mainstream? 3) What is the government doing about this problem? 4) How is the private sector responding to the opportunity? and 5) What more can the federal government do to address this problem?
For the complete document, please see the attached PDF version.