Mobile Banking for the Unbanked
According to The Economist, about 8% of U.S. households – and nearly one in three whose income is less than $15,000 a year – do not have a bank account. Why is this figure so low for lower-income households? More than half say banking is too expensive – either because maintaining the minimum balance necessary for an account is out of reach or because the fear of unexpected fees is too high.
To remedy this problem and provide a point of entry for financial services to the poor, many have looked to the surge in mobile phones as a possible solution. In fact, the Center for American Progress reports that in nine states and the District of Columbia, cell phones are more common than bank accounts.
See the infographic below from the Center for American Progress to learn more about the possible connection between mobile phones and banking for lower-income households: