FDIC: Mississippi "Bankless" Tops 16 Percent

By: The Associated Press
By: The Associated Press

Federal banking regulators say 16.4 percent of Mississippi households, or 184,000, don't have a bank account or access to banking services.

Mississippi's 16.4 percent "unbanked" figure is double the national average of 7.7 percent in the report released Wednesday by the Federal Deposit Insurance Corporation.

A total of 282,000 households, or 25.2 percent, are considered "under-banked," meaning they have a bank account of some sort but also use payday loans, check-cashing services and other costly alternatives to traditional banks. That compares to about 18 percent nationally.

The FDIC says black residents, non-homeowners and households that earn less than $30,000 annually are more unlikely to have a checking or savings account in Mississippi.

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  • by Payday Lending Rep Location: Alexandria, VA on Dec 4, 2009 at 02:03 PM
    This story missed a few key points. The fact is that 43 million U.S. adults live in households that, although they have bank accounts, occasionally use alternative financial services when it meets their needs. Payday lenders and the other providers of financial services exist because of the demand for their services and the ability to offer these services more effectively than banks. To try and meet that demand, the FDIC launched a program to develop payday lending alternatives. While touted as a success, the products offered have different terms and different price structures than payday loans, and based on current customer use, are in limited demand. Banks simply cannot offer traditional payday loans profitably to their customers. The FDIC mistakenly characterizes as “underbanked” any household that has a bank account but used an alternative financial service, such as a payday loan. Findings show that customers use payday loans for multiple reasons, including convenience.
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