How Effective is Lifeline Banking in Assisting the 'Unbanked'?
6 Pages Posted: 3 Jul 2007
Date Written: June 1998
Many consumers who lack checking accounts are paying relatively high costs to access the nation's payments system. Legislation aimed at opening the system to these unbanked individuals has centered on requiring commercial banks to offer low-cost 'lifeline' accounts. But will cost savings alone motivate these consumers to access the payments system through banks?
Keywords: lifeline, banking, unbanked, check cashing
JEL Classification: G2, G28, G21
Suggested Citation: Suggested Citation