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Today, the Federal Deposit Insurance Corporation (FDIC) hosts its first Economic Inclusion Summit exploring strategies to bring consumers into the financial mainstream. NAWRB CEO & President Desirée Patno and Government Relations Chairwoman Silvia N. Rathell are in attendance, participating in the mission to increase the involvement and impact of disenfranchised American consumers.
The lack of economic inclusion in the U.S. is visible in the FDIC’s 2016 biennial National Survey of Unbanked and Underbanked Households:
- 7 percent of households were unbanked, having no account relationship with an insured institution
- 9 percent of households were underbanked, encompassing households in which a person had a bank account, but still resorted to alternative financial services providers throughout the year
- The survey found that 27 percent of households, or 90 million Americans, were unbanked or underbanked
- The following segments have a higher probability of being unbanked or underbanked
- 42 percent of households with incomes below $30,000 per year
- 49 percent of African American households
- 46 percent of Hispanic households
- 46 percent of households headed by a working-age individual with a disability
Among numerous initiatives, the FDIC introduced the Safe Account Project in 2011, which enrolled consumers in electronic transaction accounts relying on debit cards, without overdraft or nonsufficient funds fees and other restrictive requirements. Participating institutions reported positive results from the project, and the FDIC has continued working to make these accounts more accessible.
A relationship with a financial institution is fundamental to economic wellbeing, allowing consumers to save money, make payments and protect their funds. Through the structure of the Economic Inclusion Summit, which aims at creating dialogue between experts and members of the audience, the FDIC is highlighting real issues and helping originate actionable solutions.
The summit is being webcast live on the FDIC homepage.