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The Fed defines the “unbanked” as people who have no checking or savings account with a bank or credit union.
The word describes 22.3 percent of Coloradans who tend to be lower income and young. They may live paycheck to paycheck due to limited, unstable income; have had past negative experiences with banks; find retailers easier to use than banks; and have an immediate need for cash, notes the Denver Business Journal.
Such “consumers are finding checking and savings accounts less relevant to their financial lives, but research shows that access to safe and affordable bank services is a key step in achieving personal financial stability,” says Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, in a statement.
One place they may find some stability is Wal-Mart, which has partnered with financial services companies to offer money transfers, check cashing, bill payments, refillable pre-paid debit cards that act like credit cards, and other perks, reports Fortune.