Definition of Underbanked
Under-banked generally refers to a situation in which a firm has insufficient access to banking expertise for its purposes. For example, in the event that a company wishes to do an 'initial public offer' (IPO) it will require a full suite of banking and brokerage facilities in order that it optimises the chances for the IPO to be successful. Similarly, as a business grows it will generally need to take on more banks as advisors to handle each of the challenges that arise from an increase in business size and performance.