EconPapers    
Economics at your fingertips  
 

Which Types of Unbanked Households Are More (or Less) Likely to Open a Bank Account?

Fumiko Hayashi, Aditi Routh and Ying Lei Toh

No RWP 23-08, Research Working Paper from Federal Reserve Bank of Kansas City

Abstract: Using multi-year survey data, we conduct a regression model analysis to examine which types of unbanked households are more likely to open a bank account and which types are less likely. We proxy for households’ likelihood of opening a bank account using their prior banking status and interest in having a bank account. Unbanked households who previously had a bank account and are interested in having a bank account are more likely to open an account. These households tend to be more educated, to be native-born, to use alternative financial services, and to have access to digital technology. In contrast, households who never had a bank account and are uninterested in a bank account are less likely to open an account. These households tend to be less educated, to be of a racial minority, to be foreign born, to lack access to digital technology, and to rely heavily on cash. Moreover, they tend to distrust banks. Advancing financial inclusion for this group will require strategies to increase their trust in the financial services industry.

Keywords: unbanked consumers; financial services; racial equity (search for similar items in EconPapers)
JEL-codes: D12 G21 G23 G41 (search for similar items in EconPapers)
Pages: 43
Date: 2023-06-20
New Economics Papers: this item is included in nep-fle and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.kansascityfed.org/Research%20Working%2 ... 8hayashirouthtoh.pdf Full Text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedkrw:96698

Ordering information: This working paper can be ordered from

DOI: 10.18651/RWP2023-08

Access Statistics for this paper

More papers in Research Working Paper from Federal Reserve Bank of Kansas City Contact information at EDIRC.
Bibliographic data for series maintained by Zach Kastens ().

 
Page updated 2025-03-30
Handle: RePEc:fip:fedkrw:96698