How Mobile Banking is Reaching the ‘Underbanked’
Nearly a quarter of total D.C. households are considered “underbanked.” Those families have bank accounts but still regularly use things like check cashers or payday lenders, which can make the cost of accessing money expensive. And many underbanked households in D.C. are black, Hispanic or making less than $30,000 a year.
Turns out that banking from phones could be a way to increase access to financial services. Results from a new Federal Reserve Board survey show that mobile banking is more prevalent among traditionally underbanked groups. For instance, black and Hispanic mobile phone users are much more likely to use mobile banking than their white counterparts, according to the survey.
Mobile phones have also been suggested as a solution to reducing the digital divide that persists in the District. Blacks and Hispanics are already making greater use of mobile broadband than whites.
- Source: Federalreserve
- Via: @nprbusiness
