The “unbanked” are people who do not use any banking services at all. They are the group who do not have any checking accounts, debit cards, savings accounts, etc. While the “underbanked”, are people usually with either checking accounts or savings accounts, but rarely use the banking financial services.
According to a survey conducted by FDIC, when the unbanked are asked why they don’t have bank accounts, their common response is: “do not have enough money to keep an account” and “bank account fees are too high”. As for the underbanked, they usually sway to the side where it is more convenient; that is the alternative financial services, or what we call fintech.
Both may have different terms, but they unite in one thing — finding convenience in the financial services offered by fintech companies. Still, the underbanked may have a slight advantage over the unbanked because of some reasons, but, that’s why fintech is here. The case of the unbanked can be put at ease — just trust fintech.
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“Fintech: Financial Technology Research Guide: Unbanked & Underbanked.” Research Guides, https://guides.loc.gov/fintech/21st-century/unbanked-underbanked#:~:text=An%20%E2%80%9Cunbanked%E2%80%9D%20person%20is%20someone,alternative%20financial%20services%20(AFS).
Unbanked vs Underbanked: How do they differ in 1000 characters was originally published in Piccopay Pte. Ltd. on Medium, where people are continuing the conversation by highlighting and responding to this story.