CHERRY HILL, N.J., Aug. 19, 2021 /PRNewswire/ -- TD Bank,
America's Most Convenient Bank®, today released
the results of its annual Money Matters survey, revealing a
systemic savings issue among the underbanked and unbanked
communities.
This year's survey, which targeted the underbanked and unbanked,
found that despite a recovering economy, Americans are still
struggling to save or maintain a strong financial standing, with
only 11% of underbanked respondents having a savings account. The
term unbanked describes individuals who do not use banks or credit
unions for their financial transactions and do not have a checking
nor savings account. Underbanked consumers have either a
checking or savings account, but also rely heavily on alternative
financial services.
More than half of underbanked and unbanked respondents (54% and
52%, respectively) said that they save/put aside less than
$50 a month. Among this segment,
one-half of the underbanked (48%) and unbanked (53%) do not have
enough savings to cover three weeks of living expenses, with just
one in five (21%) of those consumers able to fund $1,000 or more on short notice.
In addition to the financial challenges to afford basic needs,
just over one-quarter (26%) of the unbanked admit that they do not
have any means to pay for emergency expenses. When it comes to
accessing emergency funds, the average underbanked American uses
credit cards (58%, vs. 43% among the unbanked) and, more recently,
stimulus checks (74% vs. 55%).
"While the pandemic has prompted many Americans to reevaluate
their savings, we continue to see the greatest challenges impacting
populations that do not have access to mainstream financial
services and products," said Alissa Van
Volkom, Head of Consumer Deposits, Products and Payments at
TD Bank. "Maintaining a healthy savings is key to preparing for
unexpected hardships, which reinforces the need for more accessible
and inclusive account offerings and resources that support
long-term financial wellness."
Social Media Emerges as a Potential Source for Financial
Advice
From a change in work lifestyle to cutting down unnecessary
expenses, the pandemic forced many individuals to re-evaluate and
reprioritize how they deal with money.
Despite the belief that the pandemic urged more
money-consciousness, the unbanked community still did not seek out
external advice amid lifestyle and financial challenges. In fact,
many underbanked (36%) and unbanked (44%) respondents shared that
they do not receive financial advice. For those who did, the
primary channel was from friends or family (27% and 25%,
respectively).
On the other hand, social media proved to be an emerging source
for financial advice, with more than one-in-four respondents (29%)
from both underbanked and unbanked groups stating they are open to
receiving advice via this channel.
Hidden Fees Remain a Top Concern
Despite banks shifting to help consumers during COVID-19,
including waiving fees and suspending some monthly payments, fees
remain top of mind among underbanked and unbanked communities.
Nearly one-half of unbanked respondents cited high fees and hidden
fees as their primary concerns (48% and 40%, respectively).
"The importance of a safe and affordable banking account has
never been clearer than during the pandemic – but fear of fees can
keep consumers from accessing mainstream financial products," said
Jonathan Mintz, President and Chief
Executive Officer of the Cities for Financial Empowerment Fund. "We
created the Bank On National Account Standards with this
in mind, requiring low monthly costs and no overdraft or
insufficient fund fees – and we are thrilled to Bank On certify TD
Bank's TD Essential Banking account."
Supporting TD Customers
TD Bank recently launched TD Essential Banking, a low-cost,
no-overdraft-fee deposit account. Customers are able to bank with
no minimum daily balance requirements. This account is designed to
meet the needs of more customers, in more communities, by providing
additional affordable access to mainstream financial services. For
more information on TD's Essential Banking account, please visit
our website.
In addition to the new account offering, TD Bank made changes to
its overdraft policy. All TD deposit account customers will benefit
from these updates, which went into effect at the beginning of
August.
To best support customers, TD Bank is also expanding its suite
of financial education tools, offering accessible and customized
resources across a variety of important topics. This includes the
addition of new content to the TD Bank Learning Center, which
offers tools, resources and learning modules for managing money and
reaching financial goals, including a student budget calculator and
budget worksheet. TD will also incorporate financial education into
its customer onboarding and retention programming, with plans to
partner with TD customer service representatives to identify
specific needs and deliver targeted resources to customers via SMS
text message and other communication channels.
Survey Methodology
The study was conducted among a representative group of 1,002
respondents, 500 Underbanked and 502 Unbanked across the United States from July 16-22, 2021. The unbanked describes
individuals who do not use banks or credit unions for their
financial transactions and have neither a checking nor savings
account. Underbanked consumers have either a checking or
savings account, but also rely on alternative financial
services. The survey was hosted by global research company
MARU/Matchbox.
About MARU/Matchbox
Maru is a world leading CX and
Insights Software & Advisory Services company. Maru was founded
to disrupt the data and insight delivery industry with a
combination of Software & Advisory Services delivering data in
real-time via a unique service model. Maru helps its clients make
informed decisions in near real-time by combining proprietorial
software, deep industry experience and access to the best minds in
research. Maru's flexible service model means our clients can
choose to self-serve our Software directly to create, launch and
analyze projects; or choose to utilize our Software with
knowledgeable support from insights experts. Maru successfully
delivers major national and international CX and CEM programs for
Enterprise organizations.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest
banks in the U.S., providing more than 9.5 million customers with a
full range of retail, small business and commercial banking
products and services at more than 1,220 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle financing and
dealer commercial services through TD Auto Finance. TD Bank is
headquartered in Cherry Hill, N.J.
To learn more, visit www.td.com/us. Find TD Bank on Facebook at
www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US
and www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com/us.
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SOURCE TD Bank