Consumers who left their brick and mortar banks during the recession have no desire to go back to them now. These “unbanked” people have found a better, less fee-filled way to manage personal finances than traditional banks. Enterprises TV explains where the unbanked went.
Many disenfranchised former bank customers avoid the big name banks and instead choose to manage personal finances with prepaid debit cards. While it may not seem the most cost-efficient way to go, prepaid cards offer some of the same benefits of a standard checking account at major bank: direct deposit of paycheck, limited number of paper checks can be written per month, cash withdrawal at POS terminals such as those in grocery stores.
Other sources the unbanked turn to are online banks such as USAA, Ally and other like them. There are no local branches for the bank customer to make a cash or check deposit. Online bank customers can use mobile deposits or one of the many locations in communities around the country to make a deposit. Cash withdrawals can be taken at POS terminals or from standard ATM machines. Some online financial institutions credit the foreign ATM fees back at the end of the month.
The Enterprises TV show notes that credit unions are also where some unbanked consumers tend to trust their money since they are not run by CEOs with million dollar salaries. The unbanked have found better, more cost-efficient and consumer-friendly financial corporations than the brick and mortar option on the street corner.