Article: Banking Relationships of Lower-Income Families and the Governmental Trend toward Electronic Payment.(includes related articles)(Statistical Data Included)

In the past three years, the federal government and many states have lowered their costs of administering welfare and benefits programs by expanding the use of electronic payment. These initiatives promise to have their greatest significance, and meet their greatest challenge, among lower-income families, the demographic group with the lowest rate of bank account ownership and the least familiarity with electronic transactions.

Although the payment programs do not require a banking relationship, the move to electronic transfer could change the financial practices of many recipients without a deposit account or with no banking relationship at all. Recipients of ...

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