Intersectionality and Financial Inclusion in the United States

Abstract

Recent estimates indicate approximately 8.4 million US households are unbanked with an additional 24.2 million US households classified as underbanked. We focus on intersectionality, specifically the intersection of race and gender, to better understand the probability of being unbanked and underbanked in the US. Additionally, we look at drivers of this financial exclusion. We find Black women are significantly more likely than Black men or any other group to be unbanked or to be underbanked. Further, we find limited wealth is more frequently cited by Black women as the main reason why they do not engage with the banking system.