Literature Review on the Unbanked and Underbanked in the United States
Commissioned by the Institute for Consumer Money Management (ICMM)
Deadline: March 31, 2026
Overview
The Institute for Consumer Money Management (ICMM)* invites proposals to conduct a comprehensive literature review on individuals in the United States who are unbanked or underbanked. ICMM seeks to deepen the field’s understanding of the drivers, consequences, and potential solutions related to limited engagement with mainstream financial services.
The review should synthesize both basic and applied research, identify conceptual and empirical gaps, and offer a forward-looking framework to guide future data collection and intervention design.
Purpose of the Review
ICMM seeks to understand what is known — and what remains unknown — about the unbanked and underbanked population in the United States. The review should address the following core questions:
1. Why does being unbanked matter?
- What harms or disadvantages arise for individuals, households, and society?
- What typical uses of banking (e.g., payments, savings, credit, identity verification, financial planning, notary services) do unbanked individuals lack or substitute for? Which of these uses cause the greatest problems?
2. How should “unbanked” and “underbanked” be conceptualized?
- Is banking status best understood as a binary or as a continuum?
- What definitions, typologies, or conceptual models exist?
- How should “underbanked” be defined, and what degrees or patterns of partial banking engagement are recognized, have been studied, and, though unstudied, should be studied?
3. What portion of the U.S. population is unbanked or underbanked?
- Summaries should draw from the highest-quality national datasets (e.g., FDIC, Census, CFPB, academic studies).
4. What are the correlates and potential causes of being unbanked?
The review should examine correlational and causal evidence, including interaction effects and intersectional patterns. Noting that some of the following are likely not yet studied, relevant domains include:
Demographic and socioeconomic factors
- Income and wealth (including parents’ income and wealth)
- Gender
- Age and life-course stage
- Race and ethnicity
- Immigration status
- Education (including parents’ education)
- Marital status and household structure
- Number of dependents
Employment and labor market factors
- Employment status (full-time, part-time, gig, informal/underground)
- Job stability and volatility
- Cash-based occupations
- Access to employer-based financial benefits
Geographic and structural factors
- Rural vs. urban location
- Neighborhood poverty and segregation
- Proximity to banks and credit unions
- Local banking market concentration
- Transportation access
- Broadband and digital infrastructure
Financial behavior and capability
- Financial literacy and numeracy
- Past negative banking experiences
- Credit score and debt burden
- Use of alternative financial services (AFS)
- Risk tolerance and financial confidence
- Trust in financial institutions
Technology and digital access
- Smartphone ownership
- Digital literacy
- Comfort with online banking
- Data plan affordability
- Cybersecurity concerns
Psychological and social factors
- Perceived discrimination
- Cultural norms around cash vs. digital money
- Social networks and peer influence
- Financial stress and avoidance behaviors
- Parents’ and other family members’ banking experiences
Policy and program exposure
- Exposure to financial education programs
- Eligibility for and participation in public benefits
- Access to municipal ID programs
- Presence of CDFIs and community banks
Other correlates and causes that have been or need to be studied
5. What are the effects of being unbanked?
- Financial, social, and economic impacts
- Effects on mobility, stability, and resilience
- Impacts on communities and the broader economy
6. What strategies and alternatives do the unbanked use? And how effective and what are the consequences of these strategies?
- Cash-based systems
- Prepaid cards
- Check cashers and money orders
- Informal financial networks
- Digital-only alternatives
- High interest rate sources of credit
- Illegal financial organizations and arrangements
- Effectiveness and consequences of these strategies
7. What efforts have been made to increase banking access?
- Public, nonprofit, and private-sector initiatives
- Evaluations of effectiveness, including quality of evaluations
- Barriers to adoption, with special attention to barriers that may most readily alleviated
8. What additional efforts have been suggested or might be tried?
- Innovations in product design
- Policy reforms
- Behavioral interventions
- Technology-enabled solutions
- Community-based approaches
9. Gaps in the Literature
The review should identify:
- Areas lacking causal evidence
- Populations understudied
- Missing variables
- Outdated assumptions
- Opportunities for new data collection
10. Conceptual Model
The review should propose a synthesized conceptual framework that:
- Reflects the continuum of banking engagement
- Integrates demographic, behavioral, structural, cultural and psychological factors
- Highlights leverage points for intervention
Scope and Expectations
The review:
- Should draw on both published and high-quality unpublished sources.
- Should rely on rigorous empirical studies, credible datasets, and authoritative statements.
- Is expected to be 20–30 double-spaced pages, exclusive of references and appendices.
- Should be submitted as a first draft within six months of proposal acceptance.
- Will be compensated with $10,000 upon submission of the first draft and $10,000 upon acceptance of the final draft.
- Will become the property of ICMM but may be published by the author in whole or in part with acknowledgement of ICMM’s support.
Proposal Requirements
Proposals should be 3–5 pages, double spaced, exclusive of CV or résumé, and should include:
1. Research Approach and Sources
- Indices, databases, and major sources to be used
- Approach to assessing study quality
- Methods for synthesizing findings across disciplines
2. Definition of High-Quality Research
- Criteria for rigor, credibility, and relevance, including sample characteristics and research design preferences
- Approach to distinguishing correlation from causation
3. Conceptual and Analytical Plan
- How the researcher will address the categories listed above in #4
- Plan for identifying gaps and proposing a conceptual model
4. Qualifications
- Summary of relevant knowledge, experience, and prior work
5. Submission Details
- Proposals should be sent electronically to rreeves@icmmnc.org
- Proposals must be submitted by March 31, 2026
- Questions may be directed to Dr. Rebecca Rayburn-Reeves at rreeves@icmmnc.org
*ICMM Mission and Vision
Mission: To support research that promotes financial security for low- to moderate-income (LMI) consumers.
Vision: To become a leading evidence-based organization that advances financial literacy and financial wellbeing in our local community and nationwide.
