Overview
Title
Agency Information Collection Activities: Submission for OMB Review; Comment Request
Agencies
ELI5 AI
The FDIC wants to know how families use or don't use banks, so they're asking people about their banking habits. They're trying to make it easier for everyone to use banks and need ideas from the public to make the survey better.
Summary AI
The Federal Deposit Insurance Corporation (FDIC) is inviting public comments on their request to approve a new version of the "Survey of Household Use of Banking and Financial Services." This survey, conducted with the U.S. Census Bureau, collects data on how U.S. households use banking and financial services, including those from nonbank sources. It aims to inform policymakers and help bring unbanked households into the traditional financial system. Comments must be submitted by March 19, 2021, to assist in minimizing the burden of data collection and improving the survey's quality and utility.
Abstract
The FDIC, as part of its obligations under the Paperwork Reduction Act of 1995, invites the general public and other Federal agencies to take this opportunity to comment on the request to approve a new information collections for its seventh biennial survey of households, which has been renamed the Survey of Household Use of Banking and Financial Services ("Household Survey"). This survey was previously named the FDIC National Survey of Unbanked and Underbanked Households and was assigned OMB Control No. 3064-0167. FDIC is seeking a new OMB Control Number for this version of the survey. The Household Survey is scheduled to be conducted in partnership with the U.S. Census Bureau as a supplement to its June 2021 Current Population Survey (CPS). The survey collects information on U.S. households' use of bank accounts and other transaction accounts including prepaid cards, online payment services, nonbank financial transaction services, and bank and nonbank credit. The results of these ongoing surveys will be published in the FDIC's How America Banks reports which help inform policymakers, bankers, and researchers about how households use, or don't use, the banking system. On December 2, 2020, the FDIC requested comment for 60 days on the proposed information collection. No comments were received. The FDIC hereby gives notice of its plan to submit to OMB a request to approve this information collection, and again invites comment on the information collection.
Keywords AI
Sources
AnalysisAI
The recent document from the Federal Deposit Insurance Corporation (FDIC) detailed in the Federal Register outlines a request for public comments on a new survey titled "Survey of Household Use of Banking and Financial Services." This survey, which is conducted with the U.S. Census Bureau, seeks to gather data on how U.S. households interact with both traditional banking and alternative financial services.
General Summary
The FDIC's document invites comments on approving a new version of a survey that tracks how households access and utilize financial services. The survey, which has been renamed and seeks a new official control number, is primarily designed to improve understanding of financial inclusion, particularly with regard to those households that remain unbanked or underbanked. This data is meant to aid policymakers by providing insights into household behaviors and preferences concerning financial services.
Significant Issues and Concerns
Some key issues emerge in the document that warrant attention. Firstly, there is a lack of detailed explanation regarding the estimated total annual burden of 6,000 hours required to complete the survey. Clarification on this would have been beneficial, as it helps to set expectations about the efforts required from respondents and administrators.
Moreover, while the survey aims to capture information about unbanked households, there is not much detail about whether the methodology effectively targets or engages this demographic group. This lack of detail might raise concerns about the data's ability to accurately reflect the behaviors and needs of the "unbanked," thus impacting the reliability of the findings.
Additionally, there is an absence of clear explanation regarding the nonbank financial transactions included in the survey's scope. Without specifying the types of transactions covered, it could create confusion about the breadth and depth of information being captured by the survey.
Another concern involves the document's language, which might be too technical for the general public, potentially limiting broader engagement and understanding. Given its aim to gather public feedback, using clearer, more accessible language could help encourage wider participation.
Impacts on the Public
The document has several potential impacts on the public. Positively, if executed well, it could help policymakers enhance financial services accessibility for people who are typically underserved by traditional banking systems. The survey insights could lead to informed decisions that support financial inclusion, benefiting unbanked and underbanked populations who may gain better access to necessary financial services.
On the negative side, if key issues like survey methodology or public engagement are not adequately addressed, it could result in incomplete or skewed data, which may lead to ineffective policy decisions. Misrepresentation of underserved demographics could further marginalize these groups rather than integrate them more fully into the financial system.
Impacts on Specific Stakeholders
For policymakers and financial institutions, comprehensively understanding household financial behaviors through this survey could guide strategic decisions. Banking institutions might see this as an opportunity to expand their services to previously untapped markets.
However, if the survey fails to achieve accurate representation, especially from those who are truly unbanked, it may result in wasted resources and hinder efforts to address gaps in financial inclusion. Additionally, insufficient diversity in respondent feedback could lead to overlooking the specific needs of different demographic groups, such as low-income families or minority communities, who are often most in need of reliable financial services.
In summary, while the FDIC's initiative genuinely aims to promote financial inclusivity, its success hinges on how well it addresses the noted concerns in methodology, clarity, and public engagement.
Issues
• The document does not provide a detailed breakdown of the estimated total annual burden of 6,000 hours, which could lead to misinterpretation or underestimation of the resources required.
• The effectiveness of the survey in capturing the needs and behaviors of 'unbanked' households is not discussed, leaving questions about whether the methodology is suitable for its stated objectives.
• The document mentions nonbank financial transactions but does not clearly outline the scope and type of these transactions, which might lead to ambiguity in understanding the data collected.
• There is no mention of specific outreach or feedback mechanisms for improving response rates from underrepresented groups, which might affect the survey's comprehensiveness and accuracy.
• The language could be considered overly technical for a general audience, potentially limiting public understanding and engagement with the initiative.
• While the survey supports the FDIC's mission, the document does not provide specifics on how the data collected will directly influence policy or regulatory changes.