Solo signator: analysis of the minor alone statutes

Abstract

Lack of banking access affects approximately a quarter of the population. It is often the most vulnerable populations that are most likely to be unbanked. Without access to the formal banking system, people turn to alternative financial services (AFS) which are significantly more expensive than the formal alternatives. Granting minors independent access to the formal banking system may be a policy tool which can reduce the number of unbanked adults and adults who frequent AFS. I exploit variation in a set a laws known as the Minor Alone Statutes (MAS) which grant minors independent access to state-chartered banks and credit unions. Results on how the MAS affect account ownership are inconclusive, but the MAS do decrease the probability of young adults with bank accounts frequenting AFS by approximately 10%.