Who Are the Unbanked?

This paper uses nationally representative survey data from Mexico to compare households with savings accounts in formal financial institutions to their neighbors who do not have such accounts. The survey, which was conducted in 2005, contains infor...

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Bibliographic Details
Main Authors:	Djankov, Simeon, Miranda, Pedro, Seira, Enrique, Sharma, Siddharth
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO BANKING ACCESS TO BANKING SERVICES ACCESS TO BANKS ACCESS TO FINANCIAL SERVICES ACCOUNT HOLDERS ACCOUNTING AFFORDABILITY AGRICULTURAL ACTIVITIES AGRICULTURAL INCOME ANNUAL INCOME BANK ACCESS BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK BRANCHES BANK CUSTOMERS BANK FEES BANK POLICY BANK SERVICES BANKING LEGISLATION BANKING MARKETS BANKING NETWORK BANKING SERVICES BANKS BARRIER BARRIER TO BANKING BEHAVIORAL ECONOMICS BEHAVIORAL TRAITS BOND BORROWING BROKERAGE BUSINESS SCHOOL CALCULATION CHECKS COLLEGE EDUCATION COMMERCIAL BANK COMMERCIAL BANKS CONSUMER CONSUMER DURABLES CONSUMER EXPENDITURES CONSUMPTION EXPENDITURE COOPERATIVES CREDIT ASSOCIATIONS CREDIT COOPERATIVES CREDIT GUARANTEES CREDIT MARKET CREDIT MARKETS CREDIT UNIONS CURRENCY CURRENCY CRISES DEALING WITH BANKS DEBT DEBT FORGIVENESS DEMOGRAPHIC DEMOGRAPHIC CHARACTERISTICS DEPOSIT DEPOSIT ACCOUNTS DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DEVELOPMENT BANK DIRECTED CREDIT DISTRIBUTION OF INCOME DISTRIBUTION OF WEALTH ECONOMIC SHOCKS EDUCATION LEVELS EDUCATIONAL ATTAINMENT EMPLOYEE ENTREPRENEUR ETHNIC NEIGHBORHOOD EXPENDITURE EXPENDITURES FEDERAL RESERVE FEDERAL RESERVE BANK FINANCE CORPORATION FINANCIAL ACCESS FINANCIAL ACCOUNTS FINANCIAL ASSETS FINANCIAL BEHAVIOR FINANCIAL CHOICES FINANCIAL DECISION FINANCIAL EDUCATION FINANCIAL INFORMATION FINANCIAL KNOWLEDGE FINANCIAL LITERACY FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL TRANSACTIONS FIRST ACCOUNT FORM OF COLLATERAL FORMAL FINANCIAL INSTITUTION FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SECTOR FORMAL LOANS FRINGE BANKING HEALTH INSURANCE HIGH INTEREST RATES HIGHER COST FINANCIAL SERVICES HOME OWNERSHIP HOUSEHOLD EXPENDITURE HOUSEHOLD FINANCE HOUSEHOLD INCOME HOUSEHOLD WELFARE HOUSEHOLDS INCOME SHOCKS INFORMAL BANKS INFORMAL FINANCING INFORMAL SAVINGS INITIAL DEPOSIT INITIAL DEPOSITS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT ACCOUNT LACK OF AWARENESS LAWS LEVEL OF ASSETS LEVEL OF EDUCATION LIABILITY LIQUIDITY LOANS FROM FRIENDS LOW INCOME LOW INTEREST RATES LOW-INCOME LOW-INCOME PEOPLE LOWER INCOME LOWER INTEREST RATES LOWER-INCOME COMMUNITIES LOWER-INCOME POPULATION MAINTENANCE FEE MFI MFIS MICRO-FINANCE MICRO-FINANCE INSTITUTION MICROFINANCE MICROFINANCE INSTITUTIONS MINIMUM BALANCES MINIMUM DEPOSIT MINORITY GROUP MUNICIPALITIES OUTREACH PERMANENT JOB PHYSICAL ACCESS PRIVATE SECTOR DEVELOPMENT PROBABILITY PROPENSITY TO SAVE PUBLIC POLICY QUESTIONNAIRE REAL ESTATE REGULATORY ENVIRONMENT REGULATORY OVERSIGHT REMITTANCES REORGANIZATION RURAL BANKS RURAL CREDIT RURAL CREDIT MARKET RURAL CREDIT MARKETS SAVINGS SAVINGS ACCOUNT SAVINGS ACCOUNTS SAVINGS INSTITUTION SAVINGS INSTRUMENTS SECONDARY SCHOOL SELF-EMPLOYMENT SOCIAL BANKING SOURCE OF INCOME TECHNICAL ASSISTANCE TRANSACTION TRANSACTION COSTS TRANSACTIONS COST URBAN POPULATION VALUABLE VARIABLE COSTS WAGE WAGES WELFARE PROGRAM WORTH
Online Access:	http://documents.worldbank.org/curated/en/2008/06/9561338/unbanked http://hdl.handle.net/10986/6666

Description
Summary:	This paper uses nationally representative survey data from Mexico to compare households with savings accounts in formal financial institutions to their neighbors who do not have such accounts. The survey, which was conducted in 2005, contains information on nearly 5,000 households. The findings show that although neighboring banked and unbanked households have similar demographic and occupational profiles, the former are more educated and have markedly greater wealth. The median banked household spends 32 percent more per capita than the median unbanked household, and the median per capita wealth in banked households is 88 percent higher than that in unbanked households. The findings suggest that education levels, wealth, and unobserved household attributes that might be correlated with wealth and education play a major role in explaining who is banked.

Who Are the Unbanked?

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