AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Beyond Banks: Trust among the Financially Underserved
AEA Papers and Proceedings
(pp. 299–304)
Abstract
In 2023, over 18 percent of US households were financially underserved. Prior work identifies mistrust in banks as an important factor, but it is unclear whether this mistrust is unique to banks. To address this, we surveyed underserved individuals in the United States. We elicited their levels of trust in various institutions, including banks, government entities, and alternative payment providers. We identify three dominant components of the trust scores: broad-scope trust, concerns about traditional financial institutions, and preference for a physical business presence. We explore how sociodemographic characteristics, including income, age, education, race, and political affiliation, affect these components of trust.Citation
Boel, Paola, Daniela Puzzello, and Peter Zimmerman. 2026. "Beyond Banks: Trust among the Financially Underserved." AEA Papers and Proceedings 116: 299–304. DOI: 10.1257/pandp.20261008Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination