More American households are accessing the banking system. According to an FDIC survey released this month, 96 percent of all U.S. households had bank accounts in 2023. The survey, conducted biennially with the U.S. Census Bureau, found little difference between 2023 and the previous 2021 data, but showed a marked improvement from the 2011 survey results. In 2011, when the number of unbanked households was at its highest level, the survey showed the unbanked rate at 8.3 percent, followed by a gradual drop each reported year to reach a 4.2 percent unbanked rate (5.6 million households) in 2023.
The FDIC noted continued disparities, finding that households that were lower-income, less-educated, Black, Hispanic, American Indian or Alaska Native, working-age households with a disability, households with income that varied from month to month, and single-parent households were more likely to be unbanked. In unbanked households, 2/3rds of them rely on cash, and 1/3 rely on prepaid cards or nonbank online payment systems such as PayPal, Venmo or Cash App. for their financial services, the survey said.
The survey also inquired about the newer Buy Now, Pay Later (BNPL) loans and crypto products. It found that in 2023, 3.9 percent of all households had used BNPL, while 4.8 percent had used crypto. The use of both types of products were higher among banked households than among the unbanked.
Read the full survey here: https://www.fdic.gov/household-survey
