Smartphone use for mobile banking consumers Source/Shutterstock.

Unbanked and underbanked consumers represent a significant segment of the U.S. consumer market. An estimated 22% of adults are unbanked or underbanked, according to the Federal Reserve – meaning that no one in the household has a checking or savings account at a bank or credit union – and many have no credit and little cash on hand. This could be attributed to barriers such as limited access to traditional financial institutions, poor credit or a lack of awareness about the options available to them. Moreover, many consumers fear rejection when applying for a loan, so they push it off or never get around to applying.

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