ACCI Conference 2017

Bank account ownership varies considerably across the U.S. In particular, the FDIC (2016) estimates that 18 percent of black households and 16 percent of Hispanic households were “unbanked” in 2015, compared to 3 percent among white non-Hispanic households. This study identifies the key factors contributing to the racial and ethnic disparities in bank account ownership. Specifically, we examine the role of economic circumstances such as income, employment and wealth; other demographic characteristics such as age and household structure; supply-side factors such as geographic proximity to bank branches; and the influence of the communities in which households reside. Our findings will be relevant to policymakers and organizations whose mission is to encourage and support bank account ownership, especially to minority families.