Reaching the Unbanked and Underbanked: What Financial Marketers Need to Know
Financial inclusion remains one of the most significant challenges and opportunities facing banks, credit unions, fintechs, and other financial institutions. Despite widespread access to financial services, 4.2% of U.S. households (approximately 5.9 million) remain completely unbanked, while another 14.2% (roughly 19 million households) are underbanked, relying on alternative financial services options to meet their needs.
These aren’t small numbers, and they represent a substantial market opportunity for financial institutions willing to understand and address the unique barriers these consumers face. More importantly, serving these populations isn’t just good business; it’s essential to building a more equitable financial system.
Recent research from Mastercard, the Federal Reserve, and the Partnership for Financial Equity reveals critical insights about who these consumers are, how they currently manage their finances, and what prevents them from fully participating in traditional banking. For financial services marketers, understanding these dynamics is crucial to developing products, messaging, and strategies that can genuinely meet these consumers where they are.
We’ve compiled key findings about both unbanked and underbanked consumers—their demographics, behaviors, pain points, and what they’re looking for from financial institutions. Whether your organization is exploring how to better serve these segments or looking to expand your customer base in meaningful ways, these insights provide a foundation for building more inclusive and effective marketing strategies.
Key Insights:
Nearly 25 million households represent significant opportunity: 4.2% of U.S. households are unbanked and 14.2% are underbanked, disproportionately affecting lower-income, Black, Hispanic, American Indian or Alaska Native populations, people with disabilities, and single-parent households.
They’re digitally engaged and financially active: 71% of unbanked households use online payment services to manage core financial transactions, while underbanked consumers access accounts via mobile banking at even higher rates than fully banked populations.
Alternative services have become banking systems: Both segments rely heavily on prepaid debit cards, payment apps (Venmo, PayPal, CashApp), check-cashing services, payday loans, and money orders to manage their financial lives.
Trust and transparency are non-negotiable: The Partnership for Financial Equity emphasizes that trust requires transparent products, fair treatment, and community partnerships—and 65% of underbanked consumers are actively seeking solutions from financial institutions.
Success demands action beyond marketing messaging: Effective strategies require certified accounts with no fees, improved transparency, pathways for those with negative banking histories, physical presence in underserved communities, and authentic partnerships with community organizations.
