Unbanked is defined as a collective term for people who do not or cannot use banking services and therefore, have little or no access to financial services.
There are many reasons why a person may be unbanked including:
- After experiencing a banking crisis, they may have a distrust of the banking system.
- Some individuals don’t have enough money to meet the minimum requirements of a bank.
- Illegal immigrants may not have the paperwork needed to open a bank account.
- A small group of the unbanked are criminals who are trying to avoid the attention of law enforcement.
Some cryptocurrencies aim to help the unbanked by allowing them to store, use, and transfer their money with very few requirements.