Do Credit Unions Serve the Underserved?

Pankaj K. Maskara and Florence Neymotin ()
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Pankaj K. Maskara: Nova Southeastern University
Florence Neymotin: Nova Southeastern University

Eastern Economic Journal, 2021, vol. 47, issue 2, No 2, 184-205

Abstract: Abstract The tax exempt status enjoyed by credit unions is based in part upon such institutions providing financial services to individuals who are traditionally underserved by conventional banking institutions. Rather than relying upon an abstract measure of underserved status, we instead empirically estimate the probability that a household does not have an account with a traditional bank. We then use this information to determine whether individuals with reduced access to banking services are also more likely to belong to credit unions. We find that underserved households are less likely, rather than more likely, to use the services of credit unions.

Keywords: Credit union; Unbanked; Underserved; Financial institutions (search for similar items in EconPapers)
JEL-codes: G20 G21 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41302-020-00183-3

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