Corps Finances: The Problems of Unbanked and Underbanked

Barriers to banking are highlighted in results of an FDIC survey published earlier this year, with implications for corpsMixed Cash by Stopnlook, Flickr Creative Commons members and the communities they serve.

An important gateway to building financial assets is having a checking and savings account at a bank or credit union. People without an account at a mainstream financial institution are less likely to own a home or other significant assets, and more likely to pay higher transaction fees for cashing their paychecks, taking out small loans, and remitting money to family members in other countries. Also without an account to deposit money in, cash can be more easily stolen, lost (as in a house fire), and spent.

Meet the unbanked and underbanked members of the community. According to the FDIC, “unbanked” refers to people Continue reading