Wanderlust World Wanderlust World According to the Financial Conduct Authority (FCA) and related surveys, approximately 1.2 million UK households were classified as underbanked in 2021.
Definition: Households that have a basic bank account but still rely heavily on alternative financial services—such as payday loans, pawnbrokers, rent-to-own, or cheque-cashing—to meet everyday financial needs.
Key drivers include low income, irregular earnings, poor credit history, digital exclusion, and lack of trust in mainstream banks.
The FCA's Financial Lives Survey provides ongoing monitoring of this metric.