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Published On: Thu, Dec 20th, 2018

Two Million People Worldwide Still Don’t Have a Bank Account

A bank account is something most of us take for granted. It’s an everyday essential helping us to receive funds, as well as make payments and save towards special occasions. However, surprisingly, there are still a staggering two billion people who do not have a bank account worldwide.

While the number is gradually falling, it is still surprising in this day and age to see so many people still don’t have an account. So, how do they survive without one and do you really need a bank account to get by?

photo/ Rudy and Peter Skitterians

Why are so many people still without an account?

Unsurprisingly, the majority of people who do not have a bank account reside in developing countries. However, there are still a significant number of people in developed countries, such as the UK and US, who don’t have one.

There are a number of reasons for this. The majority who don’t have an account give the reason of not having enough money to put into one. Just 4% of those without an account claim they don’t actually need one. Other reasons include they use a family members account, the accounts are too expensive, and they don’t have the required documents to open one.

How do people manage without an account?

So, how do these people manage without an account? Well, largely those in developing countries rely upon cash payments. They pay their bills in cash and get paid in cash for the work that they do.

In more developed countries however, very few businesses and suppliers accept cash payments. It is also rare for an employer to pay via cash. So, in this instance, people often need to rely upon family member bank accounts.

Technology helping to break barriers   

Although two billion people without a bank account is shocking in this day and age, it is gradually improving. Approximately 69% of adults have an account, up from 62% in 2014 and 51% in 2011.

Thanks to technology, it’s never been easier to open up a bank account. Companies such as Think Money, even offer accounts for those with a bad credit history. They don’t carry out a credit check, so those with poor credit histories will still be able to get the bank account they need.

Overall, as technology advances, the number of people with bank accounts is gradually increasing. Online and mobile banking solutions are ideal for those who cannot get to a local bank and there are specialist accounts for those with bad credit.

About the Author:

Rupesh Singh is freelance writer and founder of moneyoutline.com You can follow him on Google + & Facebook.

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About the Author

- Rupesh Singh is freelance writer and founder of moneyoutline.com You can follow him on Google + & Facebook.

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