LOCAL ECONOMIC SNAPSHOT | UNBANKED IN TEXAS

Mainstream banking void
By HANAH CHO
Staff Writer hcho@dallasnews.com

One in 12 U.S. households don’t have an account with an insured, traditional bank. The so-called unbanked population represents 8.2 percent of all households in the U.S., an increase of 821,000 households from two years ago, according to a 2011 survey conducted by the Federal Deposit Insurance Corporation. In Texas, 12.8 percent of the population has no banking relationship, up from 11.7 percent in 2009.

Unbanked in the U.S.
Texas has one of the highest portions of unbanked households in the U.S.

4.5% 4.8% 4.3% 5.7 4.4% 5.8% 3.7% 7.5% 7.8% 2.8% 5.4% 4.4% 7.6% 7.1% 9.5% 7.8 5.3% 4.1% 4.5% 7.7%

New Hampshire 1.9% 3.4% 9.6% 6.1% 8.8% 9.5% 9.9% 10.9% 12.3% 15.1% 10.2% 11.5%

3.7%

4.9% 7% 5.3%

6.6%

5.6% 6.7% 6.6% 9.3% 9.3% Percentage of unbanked households: Less than 3%

11.6%

10.9% 11.5%

Texas 12.8% 5.2% 3.8%

11.5% 7.3% Mississippi 15.1%

3%-6% 6.1%-9% 9.1% - 12% More than 12%

Texas banking status
Besides the unbanked population, Texas also has a high portion of households that are underbanked*. Underbanked 27.2% Fully banked 58.1%

Texas unbanked by race
In the Lone Star State as well as across the country, unbanked households are more prevalent among blacks and Hispanics. Black Hispanic 22.3% 23.6% 4% 3.5%

Texas unbanked by income
More than 50 percent of unbanked Texans have annual incomes less than $30,000. Less than $15,000 38% $15,000-$30,000 20.3% $30,000-$50,000 8.6% $50,000-$75,000 3.6% At least $75,000 .5%

Unbanked in Dallas-Fort Worth
The percentage of D-FW households without traditional banking improved in 2011, from 10.8 percent in 2009. Underbanked 27.5% Fully banked 61.1%

Unbanked 12.8%

Banked but underbanked status unknown 2%

White Other

Unbanked 9.8%

Banked but underbanked status unknown 1.5%

*Underbanked are families that have a bank account but use prepaid cards, payday lenders and other nontraditional services. NOTE: Pie chart percentages do not total 100 because of rounding.
0 5 10 15 20 25

SOURCES: FDIC 2011 National Survey of Unbanked and Underbanked Households

The bottom line
“The Bank on Dallas program opened the door for people to start using financial institutions. Through the hard work of the nonprofits, the banks opened excess of 25,000 accounts here in two years.” Jerry Allen, Dallas councilman, chairman of Bank on Dallas task force “At Neighborhood, we want to bring them into the system affordably, teach them how to build savings, how to use debt responsibly and then how to build their assets for a secure financial future.” ”Dallas is one of several dozen cities and states partnering with banks and nonprofits to bring unbanked families into the financial mainstream and help them build a safety net.”

Carolyn Jordan, senior vice president of retail services and development, Neighborhood Credit Union

Hanah Cho, staff writer, The Dallas Morning News

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