Beyond Banks: Trust among the Financially Underserved

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.