Survey: Minorities more likely to rely on non-bank services

According to USA Today, minorities are more likely to be unbanked or underbanked compared to non-minority groups. The news source notes that in January 2009, approximately 54 percent of black households and 43.3 percent of Hispanics were either unbanked or underbanked, compared to 25.6 percent of U.S. households, according to a survey by the Federal Deposit Insurance Corporation (FDIC). In addition, African Americans are more likely to be short term borrowers, and these individuals typically pay back $800 for a $300 loan. In California, minorities represent 56 percent of short term borrowers, but make up just 35 percent of the population, according to the media outlet. A similar issue is prevalent in Indiana, according to In Context. A 2009 survey conducted by the FDIC found that amongst households with at least one bank account holder, 31.7 percent of minority homeowners relied on non-bank services, compared to 14.5 percent of white residents. The news source also states that well over half of all minority households in Indiana - 57.8 percent - partly or completely relied on financial services from non-bank institutions, compared to only 19 percent of white households.