According to a 2019 survey conducted by the Federal Deposit Insurance Corporation (FDIC), approximately 5.4% of U.S. households were unbanked, or had neither bank accounts nor credit union accounts and half of the households attributed their unbanked status to their failure to meet minimum balance requirements set by banks. Blacks and Hispanics are disproportionately affected as the group that used the least amount of bank credit.
Access to capital through credit comes with a concomitant need for a bank or a credit account. Clearly, the unbanked and/or underbanked 5.4% of the U.S. population are deemed as the underserved sector.
In advocating for these underserved groups, the National Diversity Coalition works with both private corporations and the public sector to provide access to all forms of capital to finance small businesses. We partnered with eCredable, a credit rating and reporting outfit, in educating target underserved groups, through its different modules on financial management, credit scoring and loan solutions for CDFIs.