New paths to progress: Making financial success accessible for underbanked consumers

A staggering 36 million North American consumers — 12% of the population — are underbanked, navigating their financial lives with a bank account but without access to essential credit tools like credit cards. Longstanding financial inequities have limited their growth, yet they remain driven, with 66% seeking financial knowledge and 65% looking to financial institutions for solutions.

Underbanked consumers are a diverse and dynamic group. They are early adopters of technology, embracing AI, digital finance, and open banking solutions. Mental health is also a priority, with financial stability playing a crucial role in their well-being.

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Building trust is key for underbanked consumers as 65% would like financial institutions to help address financial inequities, yet more than half also feel taken advantage of by the financial system.

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About 85% of underbanked consumers rely on debit cards, a significantly higher rate than the general population, presenting a unique opportunity for financial growth. By helping this underserved group transition to credit, we can facilitate new possibilities for financial access.

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Underbanked individuals carry significant responsibilities. Many have fewer resources that need to stretch farther. Stress and anxiety weigh on them, which is why underbanked consumers prioritize their mental health more than most, and nearly half have a near-term personal goal to improve their mental health (39% higher than the total population).

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The financial uncertainty for some underbanked consumers stems from childhoods of poverty — 64% lived in households of low socioeconomic brackets as children, vs. 46% among the total U.S. However, they are pursuing education and professional growth at rates two times higher than the general population, and two out of three are seeking more financial knowledge to gain control over their personal situation.

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Addressing their needs requires a tailored approach focused on trust, access, usage, health and education. Through our Powering Prosperity framework, we have identified three key personas within the underbanked segment, each with unique aspirations and challenges. Debit products provide an entry point for engagement, while education and personalized financial tools can help bridge gaps in financial literacy and access.

The opportunity is clear: By fostering trust and offering targeted solutions, we can empower underbanked consumers to achieve financial stability. Now is the time to reshape financial inclusion and build lasting relationships with this growing audience.