What is Underbanked?
A person is underbanked when he or she does not participate in the banking system very much and instead relies on the use of
In the securities world, underbanked can also that the underwriter of a security is unable to get more financial institutions to join the syndicate.
How Does Underbanked Work?
For example, let's assume John Doe is poor and does not trust banks. He cannot afford the monthly fees of a checking account, and so he uses savings account, and maybe a debit or credit card, but he chooses not to have those things. He is underbanked.and cashiers' checks from the local bank to pay his bills. John Doe could operate more efficiently with a checking account, a