To be underbanked means to have a bank account but still rely heavily on alternative financial services outside the traditional banking system to manage finances. Underbanked individuals or households use services like payday loans, check-cashing services, money orders, and prepaid debit cards because they have limited access to or find conventional banking services inconvenient or insufficient for their needs. This often occurs due to barriers such as cost, location, language, or credit requirements. The underbanked are different from the unbanked, who do not have any bank account at all. Underbanked people may face financial exclusion despite having some level of banking access, leading them to use costly and sometimes risky financial alternatives. This situation is more common among lower-income, less educated, and minority groups, who may also experience more difficulties in obtaining traditional credit or banking services.