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The Accounts of the Unbanked and Underbanked

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Abstract

We conducted focus groups with financially underserved Americans to learn more about how they manage their money. We spoke with 36 unbanked and underbanked individuals in Houston, Texas, and Cleveland, Ohio, about how they make and receive payments, the challenges they encounter in managing their finances, and how these experiences shape their views of financial service providers. While several participants described negative experiences with bank fees and concerns about security vulnerabilities, they acknowledged that alternative financial service providers were not always adequate substitutes.

Suggested Citation

  • Paola Boel & Geena Panzitta & Daniela Puzzello & Peter Zimmerman, 2026. "The Accounts of the Unbanked and Underbanked," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2026(02), pages 1-14, February.
    • Handle: RePEc:fip:fedcec:102796
    DOI: 10.26509/frbc-ec-202602
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    References listed on IDEAS

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    1. Ying Lei Toh, 2021. "Prepaid Cards: An Inadequate Solution for Digital Payments Inclusion," Economic Review, Federal Reserve Bank of Kansas City, vol. 106(no.4), October.
    2. Vicki L. Bogan & Sarah E. Wolfolds, 2022. "Intersectionality and Financial Inclusion in the United States," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 43-47, May.
    3. Paola Boel & Peter Zimmerman, 2022. "Unbanked in America: A Review of the Literature," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2022(07), pages 1-10, May.
    4. Emily Cuddy & Fumiko Hayashi, 2014. "General purpose reloadable prepaid cards : penetration, use, fees and fraud risks," Research Working Paper RWP 14-1, Federal Reserve Bank of Kansas City.
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