Empowering Underbanked Consumers: Financial Inclusion & Trust-Building Strategies
Around 36 million people in North America—about 12% of the population—are considered underbanked. These individuals have bank accounts but lack access to important credit products like credit cards. Despite facing persistent financial disparities that have hindered their progress, they remain motivated: 66% are actively seeking financial education, and 65% want financial institutions to provide helpful solutions.
The underbanked represent a diverse and evolving demographic. They tend to be early adopters of technologies such as artificial intelligence, digital finance platforms, and open banking. Additionally, mental health is a significant concern for them, with financial security being a critical factor in their overall well-being.
Trust plays a vital role in engaging underbanked consumers. While 65% want financial institutions to address financial inequalities, over half feel exploited by the existing financial system.
Approximately 85% of underbanked individuals use debit cards, a much higher proportion than the general population, highlighting a potential entry point for expanding their financial opportunities. Assisting them in transitioning to credit products could open up new avenues for financial inclusion.
Many underbanked people bear considerable responsibilities and often have limited resources stretched thin. This leads to elevated stress and anxiety levels, which is reflected in their prioritization of mental health—nearly half aim to improve their mental well-being in the near term, a rate 39% higher than the broader population.
Financial insecurity among this group often traces back to childhood poverty: 64% grew up in low-income households compared to 46% of the general U.S. population. Yet, they demonstrate strong ambition by pursuing education and career advancement at twice the rate of the average population, with two-thirds actively seeking greater financial knowledge to better manage their circumstances.
Effectively supporting the underbanked requires a customized approach that emphasizes building trust, increasing access, encouraging usage, focusing on health, and providing education. Our Powering Prosperity framework highlights three key subgroups within the underbanked, each with distinct goals and obstacles. Debit card products offer an initial point of engagement, while tailored education and financial tools can help close gaps in literacy and access.
The opportunity is clear: by fostering trust and delivering targeted solutions, we can empower underbanked consumers toward financial stability. This moment presents a chance to redefine financial inclusion and cultivate strong, enduring relationships with this expanding community.
The underbanked represent a diverse and evolving demographic. They tend to be early adopters of technologies such as artificial intelligence, digital finance platforms, and open banking. Additionally, mental health is a significant concern for them, with financial security being a critical factor in their overall well-being.
Trust plays a vital role in engaging underbanked consumers. While 65% want financial institutions to address financial inequalities, over half feel exploited by the existing financial system.
Approximately 85% of underbanked individuals use debit cards, a much higher proportion than the general population, highlighting a potential entry point for expanding their financial opportunities. Assisting them in transitioning to credit products could open up new avenues for financial inclusion.
Many underbanked people bear considerable responsibilities and often have limited resources stretched thin. This leads to elevated stress and anxiety levels, which is reflected in their prioritization of mental health—nearly half aim to improve their mental well-being in the near term, a rate 39% higher than the broader population.
Financial insecurity among this group often traces back to childhood poverty: 64% grew up in low-income households compared to 46% of the general U.S. population. Yet, they demonstrate strong ambition by pursuing education and career advancement at twice the rate of the average population, with two-thirds actively seeking greater financial knowledge to better manage their circumstances.
Effectively supporting the underbanked requires a customized approach that emphasizes building trust, increasing access, encouraging usage, focusing on health, and providing education. Our Powering Prosperity framework highlights three key subgroups within the underbanked, each with distinct goals and obstacles. Debit card products offer an initial point of engagement, while tailored education and financial tools can help close gaps in literacy and access.
The opportunity is clear: by fostering trust and delivering targeted solutions, we can empower underbanked consumers toward financial stability. This moment presents a chance to redefine financial inclusion and cultivate strong, enduring relationships with this expanding community.
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