The Federal Deposit Insurance Corporation reported that in 2019, 5.4% of American households were unbanked, the lowest rate since 2009.

Why should we care?
The FDIC attributes the drop to changes in economic conditions, but suggests the unbanked population will likely rise due to the effects of the pandemic. There were sharp differences among demographic groups. While 2.5% of white households were unbanked, around 14% of Black households, and 12% of Hispanic households were unbanked. Industry watchers, including the American Bankers Association, note that account fees and minimum balance requirements keep many people out of the banking system, and that more banks need to offer accounts with fees under $10 per month. “The record low unbanked rate is not because banking became more affordable, it’s because consumers have more options. High interest savings and free checking accounts have been viral products for consumer fintech startups like Chime and Varo, as well as cross-overs including MoneyLion, Robinhood, Dave, Stash, among others,” said Lindsay Davis, director of intelligence at Caliber Corporate Advisers.