The coronavirus pandemic has led to financial losses, destroyed economies, and ruined businesses everywhere in the world.
America is also getting affected by the deadly pandemic. Several Americans are losing their jobs and businesses are making more losses than profit.
According to a report from the Federal Deposit Insurance Corporation, the coronavirus situation will lead to an increase in the amount of unbanked American families.
FDIC revealed that more bank accounts portray a stable and healthy economy.
During the previous recession in America, unbanked households were in a relatively large number. It took years to stabilize the economy, which aided people in being financially funded enough to have a bank account.
The main reason for not having a bank account is deficient assets and minimum wages. The lack of funds leads to losing access to bank accounts. FDIC further showed evidence regarding the horrible situation. The report said that it couldn’t foretell how many people would go unbanked or face financial troubles.
Several complaints to the Consumer Financial Protection Bureau were made from March to July. The complaints suggested that a lot of people were already in deep financial trouble.
Only three percent of white people did not have a bank account. On the other hand, fourteen percent of black families and twelve percent of Hispanic families were unbanked.
CEO of the American Bankers Association set in motion the formation of low-cost bank accounts. He said that access to a bank account helps a lot in saving more and spending less.
People without bank accounts pay more money. They tend to miss out on many opportunities. He also mentioned that a lot of families of people of color were unbanked. He insisted on the importance of banking.
According to a survey held in 2019, new technology and applications were increasing people’s access to their bank accounts. Mobile banking had increased. People also preferred to use PayPal to transfer money instead of in cash.
If the pandemic hadn’t turned the situation upside down, more people would have access to their own bank accounts.