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13. Services for the unbanked and underbanked. <br />Public Comment: One commenter expressed support for the inclusion of services to <br />increase banking access as an allowable expense under SLFRF. The commenter recommended <br />that states be encouraged to offer opportunities for consumers to open safe and affordable <br />accounts capable of receiving direct payments. The commenter emphasized that allowing <br />unbanked and underbanked households to receive funds securely through no -fee, direct deposit <br />will help connect or reconnect consumers to the mainstream financial system. <br />Background: Banking inequities can make it difficult for unbanked or underbanked <br />households to access housing, jobs, and other important economic opportunities. Being unbanked <br />or underbanked can also make it challenging for households to apply for and receive financial <br />assistance, including services like pandemic emergency housing assistance. <br />Safe, affordable, and accessible financial services play a critical role in assisting <br />households in the United States in managing income volatility and cash flow shortages.172 <br />Currently, over 5 percent of families, or 7 million households are "unbanked," meaning they do <br />not have a bank account.173 Low-income households, non -white households, and households <br />with individuals with disabilities were even more likely to be unbanked. In 2019, 16 percent of <br />Native American households, 14 percent of Black households, and 12 percent of Hispanic <br />households were unbanked, compared to 2.5 percent of white households. Additionally, <br />underbanked households those that have a bank account but rely on alternative financial <br />services, such as money orders, payday loans, and check cashing services— account for 16 <br />172 Federal Deposit Insurance Corporation, FDIC National Survey of Unbanked and Underbanked Households <br />(2015), https://www.fdic.gov/householdsurvey/2015/2015execsumm.pdf. <br />173 Federal Deposit Insurance Corporation, How America Banks: Household Use of Banking and <br />Financial Services 2019 FDIC Survey, https://www.fdic.gov/analysis/household-survey/2019report.pdf. <br />114 <br />