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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.
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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.