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The underbanked are people who are unsatisfied with the current service their receive from their bank. Many of the underbanked find it difficult to access credit cards and their current account overdraft facility has been reduced or removed all together. Largest proportion of underbanked people belong to a "squeezed" middle-class. The underbanked are strongly dependant on Secondary Banking services finance and associated with disadvantaged from the Primary Banking service providers.

The underbanked are a distinct group from the unbanked, who are characterized by having no banking facilities at all.[1]


Small countries have less banking provision than large countries even allowing for the smaller size of their economies.[2]


There are many microfinance initiatives such as the Grameen Bank which aim to improve the provision of banking and financial services to poor communities.


  1. ^ Retsinas, Nicolas Paul; Belsky, Eric S. (2005). Building assets, building credit: creating wealth in low-income communities. Brookings Institution Press. p. 299. ISBN 978-0-8157-7409-9. 
  2. ^ Hanson, James A.; Honohan, Patrick; Majnoni, Giovanni (2003). Globalization and National Financial Systems. World Bank Publications. p. 91. ISBN 978-0-8213-5208-3. 


Further reading[edit]

  1. ^ http://www.publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/612/61204.htm