15 percent of Canadians are ‘underbanked’ — here’s what that means and why it’s a barrier to equitable recovery
Research shows that 15 percent, or close to five million Canadians, are underbanked, and three percent are completely unbanked, meaning that they have very limited or no access to financial services within the traditional banking sector. Ironically, underbanked individuals often come from low-moderate income backgrounds which put them at a higher need for accessible financial services. However, factors like low credit scores, high credit card fees, and non-sufficient fund fees are major barriers that shut Canadians out from banks. Instances of explicit racism while banking, which include being handcuffed when trying to open a bank account, have further diminished the trust in banks for many Black, Indigenous and people of colour.
The Present and Future of Bank On Account Data: Pilot Results and Prospective Data Collection
Bank On coalitions are locally-led partnerships between local public officials; city, state, and federal government agencies; financial institutions; and community organizations that work together to help improve the financial stability of unbanked and underbanked individuals and families in their communities. The CFE Fund’s Bank On national initiative builds on this grassroots movement, supporting local coalitions with strategic and financial support, as well as by liaising nationally with banking, regulatory, and nonprofit organization partners to expand banking access. This report details the Bank On Data Pilot, which collected and measured quantitative data on 2017 Bank On account usage at four pilot financial institutions with certified accounts: Bank of America, JPMorgan Chase, U.S. Bank, and Wells Fargo.
2017 Bank On Data Pilot: Accessing Local Data
Bank On coalitions are locally-led partnerships between local public officials; city, state, and federal government agencies; financial institutions; and community organizations that work together to help improve the financial stability of unbanked and underbanked individuals and families in their communities. The CFE Fund’s Bank On national initiative builds on this grassroots movement, supporting local coalitions with strategic and financial support, as well as by liaising nationally with banking, regulatory, and nonprofit organization partners to expand banking access. This tool details the 2017 Bank On Data Pilot and includes instructions for accessing the local Bank On data at the city and zip code level.