Descubra a diferença crucial entre desbancarizado e sub-bancarizado. Entenda o que significa não ter conta bancária vs. ter acesso inadequado a serviços financeiros e o impacto na inclusão financeira.
Unbanked vs Underbanked: What It Means for Australians
Unbanked vs Underbanked: What It Means for Australians
Defining the Terms: Economics, Banking and Finance
In the world of finance, you often hear the terms ‘unbanked’ and ‘underbanked’, but what do they actually mean? Understanding the unbanked definition and the underbanked definition is key to grasping the full picture of financial inclusion. At a high level, the distinction is about access versus adequacy.
A simple definition is that the unbanked are people who do not have a transactional bank account, like a chequing or savings account, at an insured financial institution. They operate entirely outside the formal banking system, often relying on cash for all their transactions.
The underbanked simple definition, on the other hand, describes individuals who have a basic bank account but still frequently rely on alternative financial services (AFS) to manage their money. These services include things like payday lenders, cheque cashing services, or non-bank money orders, which often come with higher fees.
From a banking perspective, the definitions are quite literal: do you have an account or not? The unbanked definition finance professionals use focuses on the lack of a relationship with a formal banking institution. However, the unbanked definition economics uses is broader, looking at the implications for market participation. Being unbanked or underbanked means being excluded from essential economic activities like building credit, securing loans for homes or businesses, and easily making digital payments, which are crucial in a modern economy like Australia’s in 2026.
Summary
In this guide, you’ll learn the clear difference between being ‘unbanked’ (having no bank account) and ‘underbanked’ (having an account but still needing other costly financial services). We’ll explore why this happens, what it looks like specifically in Australia, and how it impacts people’s ability to participate fully in the economy. You’ll also find answers to common questions about how technology is changing the landscape of financial access.
TLDR
- Unbanked: You have no chequing or savings account at all.
- Underbanked: You have a bank account, but it doesn’t meet all your needs, so you use services like payday loans or cheque cashing.
- Key Difference: It’s about access vs. usage. The unbanked lack access, while the underbanked have access but find it inadequate.
- Australian Context: Very few Aussies are fully unbanked, but many are underbanked, especially in remote, rural, or migrant communities.
- Causes: High fees, distrust in banks, and lack of physical branches are major reasons.
📑 Table of Contents
Unbanked vs Underbanked: Key Differences
While they sound similar, understanding the unbanked underbanked definition requires looking at the nuance between the two. It’s not just a matter of having an account or not; it’s about the quality and utility of that financial access. Financial inclusion exists on a spectrum, not as a simple yes-or-no question.
The primary distinction lies in Access vs. Usage. The unbanked are defined by a complete lack of access to formal banking. This could be due to a lack of necessary identification, a poor credit history that prevents them from opening an account, or simply not having a bank branch nearby. The underbanked, however, have cleared that initial hurdle of access—they have an account. Their issue is one of usage; the products offered by their bank are inadequate for their needs. This might be because of high overdraft fees, slow transaction processing times, or a lack of access to affordable credit.
To make it clearer, here is a direct comparison:
| Feature | Unbanked | Underbanked |
|---|---|---|
| Bank Account Status | None | Has at least one chequing or savings account |
| Primary Barrier | Lack of access (e.g., no ID, no nearby branch) | Inadequate service (e.g., high fees, poor products) |
| Financial Services Used | Cash, informal loans from friends/family | A mix of traditional banking and alternative financial services (payday loans, pawn shops, etc.) |
The Economic Drivers of Financial Exclusion
Why do these categories even exist in a developed economy? The reasons are complex, stemming from a mix of economic, social, and structural factors. Understanding the underbanked definition economics perspective means looking at the market failures and barriers that push people to the financial fringe.
- Cost Barriers
- Many traditional bank accounts come with strings attached. Minimum balance requirements can be impossible for low-income individuals to meet, and steep monthly maintenance or overdraft fees can quickly erode their funds, making a bank account a liability rather than an asset.
- Trust Issues
- A significant portion of the population, often due to past negative experiences or generational distrust, is wary of large financial institutions. Concerns over privacy, hidden fees, and the stability of the banking system can lead people to opt out entirely.
- Physical Barriers
- The rise of so-called “banking deserts” is a major issue, especially in regional and remote Australia. As banks close physical branches to cut costs, entire communities can be left without face-to-face banking services, making it difficult to deposit cash, get advice, or resolve issues.
💡 Key Insight: The underbanked definition (banking) focuses on account ownership, but the economic reality is that an account is useless if it doesn’t provide affordable and accessible ways to save, borrow, and transact.
The Australian Context: Financial Exclusion Down Under
In Australia, the situation is unique. The number of completely “unbanked” individuals is very low, partly because services like Centrelink often require a bank account for payments. However, the number of “underbanked” or otherwise financially excluded people is a significant concern.
Vulnerable groups are disproportionately affected. This includes:
🏡 Remote & Rural Communities
With bank branches closing at an alarming rate, residents in regional towns are often left with limited options, forcing them to travel long distances or rely on more expensive alternatives.
🌏 Recent Migrants
New arrivals may face difficulties providing the necessary documentation to open a bank account or may lack understanding of the Australian banking system, making them susceptible to predatory lenders.
🖤 Indigenous Australians
Particularly in remote communities, a combination of physical distance, digital divide, and culturally inappropriate service delivery creates significant barriers to full financial inclusion.
The challenge for Australia in 2026 and beyond is not just about getting everyone an account, but ensuring that account is a gateway to fair, affordable, and useful financial services.
Frequently Asked Questions (FAQ)
Why is the underbanked definition important in economics?
It’s crucial because it helps economists and policymakers measure the true financial health of a nation. It highlights market failures where traditional banks aren’t serving parts of the population effectively. Identifying the underbanked helps in understanding poverty traps, consumption patterns, and the overall stability and inclusivity of the economy.
What are examples of alternative financial services?
These are financial services that operate outside of traditional insured banks. Common examples in Australia include payday lenders who offer short-term, high-interest loans; pawn shops that provide loans against personal items; cheque cashing outlets that charge a fee to cash a cheque instantly; and non-bank money order services.
Can you be underbanked if you have a savings account?
Yes, absolutely. Being underbanked is not about the type of account you have, but how you use the financial system as a whole. If you have a savings account but still need to use a high-cost payday lender to cover an unexpected expense because you can’t get a small loan from your bank, you fit the definition of underbanked.
How does technology impact the unbanked and underbanked?
Technology is a double-edged sword. On one hand, Fintech and mobile banking (neobanks) are powerful tools for financial inclusion. They are helping to bridge the gap by drastically lowering fees, eliminating minimum balance requirements, and removing the need for physical branches. However, the “digital divide”—a lack of access to reliable internet or the digital literacy to use these tools—remains a significant barrier for some of the most vulnerable, potentially leaving them even further behind.
Written by
Ruby Walker
