A few years ago, I attended a meeting held by a couple of Texas state agencies regarding the ability of the insurance and banking sectors to recover from some sort of cyber disruption. One of the concerns raised in that meeting was the impact on the "unbanked" - those individuals who did not utilize banks in any fashion.
Policymakers have generally believed the unbanked are poorer citizens who cannot afford a bank account. Monthly fees and transaction fees take up a large portion of what little savings they have, and, as a result, they opt not to have a checking account. Of course, these same individuals often incur significant transaction costs when frequenting "check cashing" stores or payday loan companies.
An article posted today at reason.com challenges some of the notions we have about the unbanked or underbanked. For example:
There's a lot to glean and ponder in the article on multiple public policy fronts. I'd like to focus on just one of those fronts here - namely, what can we take from this information in the effort to create a culture of preparedness?
I'd like to posit three thoughts with you:
Here's where I tell you what I think about things I think about.