Mobile access: How credit unions can effectively reach underbanked

Almost 70 million Americans are currently outside, or at least not fully in, the U.S. financial system. Of those Americans, 51 million are underbanked—meaning they supplement their traditional bank accounts with alternative financial services such as payday loans and money orders.

To help community financial institutions (FIs) better connect with the underbanked, a recent Federal Deposit Insurance Corporation (FDIC) report suggests mobile banking apps may be the way to go. The FDIC found 75 percent of underbanked Americans have access to smartphones, making them prime targets for mobile banking options.

Based on its research, the FDIC determined six ways mobile banking helps FIs better meet the financial needs of the underbanked:

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