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23% of low-income Americans are living without a bank account
Even as many Americans go cashless, some don’t have the option to choose that lifestyle.
About 6% of Americans were unbanked in 2023, meaning they’re living without access to any traditional financial services such as savings accounts, credit cards or personal checks, according to data from the Federal Reserve.
This share of the population grows to 23% when only considering people making less than $25,000.
The unbanked are more vulnerable to predatory lending practices and their cash is more at risk, financial experts say. This issue disproportionately affects Black and Hispanic adults, Fed data shows, putting financial institutions and local organizations in a position to build trust within marginalized communities.
“Oftentimes the most vulnerable among us, who need the resources most efficiently, aren’t able to get access,” said Wole Coaxum, CEO of MoCaFi, a fintech company serving the unbanked and underbanked.
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