In 2023, the proportion of American households without a bank account fell to 4.2%, or roughly 5.6 million households, marking the lowest rate recorded since the Federal Deposit Insurance Corporation (FDIC) began tracking this data in 2009. This information comes from the FDIC’s annual National Survey of Unbanked Americans and Underbanked Households, which gathered data from nearly 30,000 households in June 2023.
The report highlighted a significant reduction in the number of unbanked minority households—by about 50% since 2011—yet these rates are still notably higher among families with lower incomes, less education, and those that are Black, Hispanic, disabled, or led by a single parent. Despite the improvements, unbanked rates for minority groups continue to be substantially higher compared to White households.
Key Takeaways
- Lowest Unbanked Rate on Record: In 2023, the percentage of unbanked U.S. households dropped to 4.2%, the lowest since the FDIC began tracking in 2009. This represents about 5.6 million households, reflecting a consistent decline over the past decade.
- Persistent Disparities Among Minority Groups: While the overall unbanked rate has decreased, significant gaps remain. Unbanked rates are higher among Black (10.6%), Hispanic (9.5%), and American Indian/Alaska Native (12.2%) households compared to White households (1.9%).
- Economic and Educational Factors Impact Access: Lower-income households, those with less education, and households with disabled members are more likely to be unbanked. For example, 21.8% of households earning below $15,000 and 19.7% without a high school diploma need banking access.
- Growing Role of Mobile Banking and Digital Finance: Mobile banking use has surged, with nearly half (48.3%) of banked households using it as their primary method. Additionally, trends in cryptocurrency and Buy Now, Pay Later (BNPL) services reflect evolving household financial behaviors.
Unbanked Americans – Trends and Disparities in U.S. Banking Access and Financial Services
In 2023, only 4.2% of U.S. households, approximately 5.6 million, did not have a bank or credit union account, a slight decrease from 4.5% in 2021 and a significant drop from 8.2% in 2011. This decline follows the economic impact of the 2008-2009 financial crisis.
Tracking these figures helps ensure more Americans access banking services and affordable credit, which, according to some federal officials, supports a stronger, fairer economy.
Jeffrey Weinstein, a senior research economist at the FDIC, noted that although progress has been made, improvement is still needed, especially in specific population segments.
In 2023, disparities in banking access among different ethnic groups persisted: 10.6% of Black households, 9.5% of Hispanic households, and 12.2% of American Indian or Alaska Native households were unbanked, compared to 1.9% of White households. Despite a significant reduction since 2009, the rates for minority groups are still markedly higher.
Unbanked rates are also elevated in lower-income households, those with less education, those with disabilities, households with fluctuating monthly incomes, and single-parent households. For example, in 2023, 21.8% of households earning below $15,000 were unbanked, compared to just 0.7% of households earning at least $75,000. Households with a disabled working-age member had an unbanked rate of 11.2%, higher than the 3.7% rate for households without a disabled member.
Among households without a high school diploma, 19.7% were unbanked, compared to 0.8% among those with a college degree.
The latest FDIC report has identified new trends in Americans’ use of banking services. The report found that 48.3% of households with bank accounts use mobile banking to access their accounts, an increase from the last survey. Over the last ten years, the number of U.S. households that use mobile banking has increased almost ninefold.
Additionally, the percentage of households that prefer using bank tellers for their primary banking needs has slightly increased since 2021.
The FDIC report indicates that 76.4% of households possess a credit card, making it the most commonly used mainstream credit product. Conversely, 15.7% of households lack access to mainstream credit, often because they lack a credit score with national credit reporting agencies, which complicates obtaining credit when needed.
For the first time, the survey included data on Buy Now, Pay Later short-term loans, with 3.9% of households using this option. Additionally, 4.8% of U.S. households engaged with cryptocurrencies or digital assets in the past year, with 92.6% holding these assets as investments and only 4.4% using them for payments. It was more frequent for households earning $50,000 or more annually to hold cryptocurrency as an investment. Conversely, households earning less than $50,000 were more likely to use cryptocurrency to send or receive money.
Conclusion
The decline in unbanked American households to a record low of 4.2% in 2023 reflects significant progress in expanding financial access. However, persistent disparities among minority and lower-income groups remain a challenge, highlighting the need for targeted efforts to close these gaps. Economic factors, education levels, and disabilities substantially affect banking accessibility.
The increasing adoption of digital banking, cryptocurrency, and alternative financial tools underscores the evolving landscape of personal finance. Continued monitoring and policy interventions are essential to ensure equitable access and foster a more inclusive financial system for all Americans.
