Refining the Definition of the Unbanked
Abstract
We propose a new way to classify individuals without a bank account, accounting for their actual interest in being banked. Analogous to how unemployment statistics are defined, we differentiate individuals that do not have a bank account and would like to have one (“unbanked”) from individuals that do not have a bank account and are not interested in having one (“out of banking”). Using FDIC data, we show the evolution over time of these new measures and show that the two groups differ in policy-relevant ways. These factors should be considered when designing policies aimed at increasing financial inclusion.
Fields of Study & Subjects
Financial Literacy
Pension
Retirement Analysis
Banking stability
regulation
efficiency
Economic
financial
and policy analysis
Publication details
- Journal / source
- AEA Papers and Proceedings
- Publisher
- American Economic Association
- Volume
- 116
- Pages
- 289–293
- Publication date
- 1 May 2026
- Language
- EN