Cryptocurrency and Financial Services Among Underbanked Households

Underbanked Households and Cryptocurrency Usage

American households that utilize services like check cashing and payday loans are more inclined to own cryptocurrencies compared to those with access to traditional banking. This trend is highlighted in a government report from the U.S. Federal Deposit Insurance Corporation (FDIC). The report focuses on "underbanked" and "unbanked" households, which have limited or no access to conventional banking services.

Survey Insights on Banking Access

The FDIC's survey, conducted in June 2023, involved 30,000 households. It revealed that the proportion of "unbanked" households, those without checking or savings accounts, has significantly decreased since 2011, now representing 4.2% or 5.6 million households. However, disparities persist among various demographic groups, particularly among Black, Hispanic, Native American, Alaska Native, and single-parent households, as well as those with disabled working-age members.

Cryptocurrency and Digital Currencies

Among the underbanked, 14.2% of U.S. households, or 19 million, were identified as such, with more than 6% holding digital currencies. This is a notable figure compared to 4.8% of households with full traditional banking access.

Buy-Now-Pay-Later Services and Payment Challenges

The survey also highlighted the usage of buy-now-pay-later (BNPL) services, with nearly one in 10 underbanked households using these options. This compares to just 3% of fully banked households. A significant portion, nearly 13% of BNPL users, reported missed or late payments, a figure that escalated to over 20% among the underbanked.

Understanding these financial trends is crucial for addressing the needs and challenges faced by underbanked households and improving their access to financial services.