Equity Data Series: Unbanked & Underbanked

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It is important than people have a safe place to store their money. Households without an account do not have a safe place to store their money, leaving them open to risks of loss from theft or natural disaster.

We used unbanked and underbanked data to identify income inequities in our region. Here’s what we found:

Of Black households 28.9% are underbanked

Of Latinx households 23.1% are underbanked

Of Latinx households 16.3% are unbanked

Of Asian households 15.7% are underbanked

Of Black households 13.9% are unbanked

Of white households 13.4% are underbanked

Of Asian households 2.3% are unbanked

Of white households 2.2% are unbanked

According to the Metropolitan Policy Program at Brookings Institution, the average full-time worker without a bank account may spend $40,000 in fees over the course of his or her lifetime just to cash paychecks. Households without an account do not have a safe place to store their money, leaving them open to risks of loss from theft or natural disaster.
Underbanked households are households that have a bank account but have used alternative financial services—such as payday loans—in the past year.

How United Way Helps 

As a part of United Way of Greater Richmond & Petersburg’s 2020-22 funding cycle, 15 programs at 14 partner agencies supporting income equity are receiving a total of $565,000 in community investments.


HumanKind’s Ways to Work program provides fair-interest vehicle loans and financial literacy education to working individuals with low-incomes and challenging credit histories. Clients are engaged in the program for 2-3 years, over which time they receive ongoing case management to help them build strong financial habits. As a result of the program, individuals build their credit, gain better employment, provide better opportunities to their children, utilize less public assistance and improve their long-term financial stability.

 

From January 1 through December 31, 2020, HumanKind served 619 individuals through the Ways to Work program. 68.5% of individuals served were Black community members.


Thrive Virginia offers financial counseling and education programs designed to help families assess their current household financial situation, including credit, spending and savings and to help them to set realistic financial goals. The program promotes the understanding of their finances, how to budget, how to build credit and savings and how to reduce debt.

 

From January 1 through December 31, 2020, Thrive Virginia served 25 individuals. Nineteen of those served (76%) were Black.


How Can You Help?  

Donate to United Wayof Greater Richmond & Petersburg today. Your donation helps us make equitable income a reality for our region. 

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