Imagine that you are being carried out to sea and you begin to drown​

You begin to panic and gasp for air​

You start to lose buoyancy

At this very moment, surviving is the only thing on your mind

Soon, you begin to run out of stamina, air, and hope

You no longer have the energy to propel yourself to the surface

You start to sink to the bottom with any last hope of someone coming to save you

No one knows that you are out at sea​

No one is coming to save you​

Being unbanked may feel like drowning.

Often, our initial reaction to drowning is to panic.

However, when taught the right techniques, we are able to stay afloat on the surface.

When drowning, you should be focused on remaining calm and
relaxed while taking big inhales and quick exhales in order to stay afloat.

You should not panic, flail, or hyperventilate. This will cause your body to
run out of energy quickly and become heavier as there is less air in you.

Just like those who drown, the unbanked lack the knowledge and tools to stay afloat.

And the longer they go without the proper solutions, the deeper they sink into debt.

It is not necessarily the unbanks fault that they continue to live in financial scarcity.

Most large banks choose not to help them, so the unbanked are left to use predatory banking services.

There are also empathy and knowledge gaps between the unbanked and the banked populations.

Help us bridge the gap by diving deeper and learning more.

Dive!

Terminology

Banked

Owns a bank account and mostly uses mainstream financial services.

Underbanked

Owns a bank account but goes outside of their bank for financial services.

Unbanked

Does not own a bank account and solely uses alternative financial services.

Why people remain unbanked...

  • Insufficient funds to open and maintain an account
  • Lack of trust in banks
  • Banks do not offer the services they need
  • Cannot access financial institutions
  • Do not need an account
  • Less privacy when using a bank
  • Bank fees are too high and unpredictable
  • Lack of necessary documentation

Types of banking

Mainstream

Financial systems regulated by government entities.

  • Commercial/Retail banks
  • Credit unions
  • Mutual banks

Alternative/Fringe

Financial services not regulated by government entities.

  • Check cashing
  • Payday loans
  • Pawn shops

Pros

  • Safe and secure
  • Avg. interest rate on loans = 6%-36%
  • Many financial options

Cons

  • Wide range of fees
  • Need good credit for loan
  • Inconvenient hours and locations

Pros

  • Receive paychecks early
  • Quick and easy short-term loans
  • Offer loans to those with no/bad credit

Cons

  • Avg. interest rate on loans = 300% - 600%
  • $4 -$8 check cashing fee
  • Uses personal items as collateral

Now that you have more of an understanding, you may float back up. 

Float