WASHINGTON, D.C. – The number of U.S. households without a bank account fell significantly in 2015, according to the recent National Survey of Unbanked and Underbanked Households by the Federal Deposit Insurance Corporation (FDIC).
The survey found that 7% of U.S. households were unbanked in 2015, the lowest share in the survey’s history and a decrease from 7.7% in 2013 and 8.2% in 2011. While improving economic conditions during the two years through the 2015 survey account for part of the drop in the unbanked rate, the rate fell further than expected based on economic factors alone.
The decline in the share of unbanked households was broad-based. Unbanked rates among black and Hispanic households, for example, fell about 10%. Households with very low incomes (i.e., less than $15,000 per year) and households headed by individuals without any college education also saw their unbanked rates fall significantly.
“Developing a relationship with a bank helps consumers build assets and create wealth, makes them less susceptible to discriminatory or predatory lending practices, and can provide a financial safety net against unforeseen circumstances,” said FDIC Chairman Martin Gruenberg, in a press release. “The decline in the share of households who do not have a banking relationship is a positive development, and the FDIC will continue working to help ensure households have access to safe, secure, and affordable banking services.”
Use of smartphones to engage in banking activities continues to grow at a rapid pace. Some 9.5% of households reported relying on mobile banking as their primary method for accessing a bank account, up sharply from 5.7% in 2013. Between 2013 and 2015, the proportion of households that used a prepaid card in the past 12 months increased from 7.9% to 9.8%. This growth occurred broadly across socioeconomic and demographic groups. Consistent with results from the 2013 survey, prepaid card use in 2015 was higher among lower-income households, less-educated households, younger households, black households and working-age disabled households.