Mobile banking is now the primary access point for nearly half of US households with bank accounts, according to the FDIC’s 2023 National Survey of Unbanked and Underbanked Households. The survey found that 48.3 percent of banked households primarily rely on mobile devices for their banking needs, reflecting a nearly nine-fold increase over the past decade.

“The use of bank tellers has fallen by more than half, and the use of online banking has fallen by more than a third,” the survey results noted. “As of 2019, mobile banking was the most prevalent primary method of account access.”

Despite the growth of mobile banking, the survey found that about 19 million households – 14.2% of the country – are still classified as underbanked, a term defined as a household that relies on non-bank financial services despite having a bank account or credit union.

Even though about 96% of households had access to traditional financial accounts in 2023, about 5.6 million households – 4.2% of the total – do not have access to the banking system at all.

The level of unbanked households in 2023 marks a modest decline from the 4.5 percent of households classified as unbanked in the last FDIC survey in 2021 and reflects significant increases in banking access over the past few decades. In 2011, 8.2% of homes – the highest level on record – were classified as unbanked. The FDIC attributes this decline largely to improving socioeconomic conditions, including higher income and education levels.

However, this rosy picture belies the racial disparities in which communities are bankable and which are not. Nearly 10.6 percent of black households, 9.5 percent of Hispanic households, and 12.2 percent of American Indian or Alaska Native households remain unbanked, compared to just 1.9 percent of white households. While these rates have declined in recent years, disparities remain stubbornly difficult to eliminate.

Among black households, the unbanked rate has dropped significantly from 21.4% in 2009 to 10.6% in 2023, yet these households still represent a significant portion of the unbanked and underbanked population. Black households were more than five times more likely to be unbanked, more than twice as likely to be underbanked, twice as likely to use prepaid cards, and more than twice as likely to not having traditional credit scores. Racial banking disparities also existed at every socioeconomic level.

“Among households with incomes between $50,000 and $75,000, 3.5 percent of black households and 4.5 percent of Hispanic households were unbanked,” the survey notes. “compared to 0.8% of white households (at the same income level).”

When asked about barriers to banking, 42.3% of unbanked consumers said they did not have the funds to meet minimum balance requirements, while 15.7% said they did not trust banks. For those who reported not being interested in opening an account, privacy and bank fees were additional deterrents.

“Access to safe and affordable bank accounts is fundamental to consumers being able to participate in and benefit from our nation’s economy,” said FDIC Chairman Martin J. Gruenberg. “This survey reveals that significant disparities in access to banking for minority, lower-income, disabled, and single-parent households still exist and need to be addressed.”