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Education, Partnerships Help Credit Unions Engage With the Unbanked

CUs' flexibility in serving lower income members is critical to engaging people who would otherwise miss out on mainstream financial services.

By Nirit Rubenstein | May 08, 2020 at 09:00 AM
Cash advance store front Store front offering high interest loans and quick cash. Source: Shutterstock

While being underbanked or unbanked is less of an issue today than it was in previous years, the United States still has its fair share of people who fall into these categories. According to the FDIC, as many as one in four Americans lack sufficient access to services typically offered by credit unions and retail banks, and 7% of Americans do not even have their own bank accounts.

People in these categories may have good reasons for bypassing traditional financial services, but doing so is more expensive over the long-term. Data from the Wharton School of Business showed that fees from cashing checks alone cost an average of $108 per year, or as much as $40,000 over the course of an individual’s life.

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