If you’re like most people visiting this page, you’re probably looking for statistics on AI in banking. We know that it can be hard to find the latest numbers on the subject, and that’s why we’ve put together this list of AI in banking statistics.

You’re looking for some answers, but you can’t find them. You know that AI is transforming the banking industry, but you don’t know how to quantify the change it will make or how quickly it will happen. You want to be able to talk about AI in banking with your coworkers, but the only thing you have to go on are a few outdated articles.

It doesn’t have to be this way. We know how frustrating it can be when there aren’t any good resources out there that help answer your questions about a topic as important as AI in banking. 

So that no matter what question you have about the state of AI in banking, this article can help answer it. If you just want a quick overview of how big this industry is getting, or if you need to get more specific details about what kinds of roles people with a background in math or science tend to gravitate toward when they first enter the field, then we’ve got exactly what you need.

Powerful AI in Banking Statistics To Enthrall You [Editor’s Choice]

• HDFC’s Electronic Virtual Assistant (EVA) has responded to more than 5 million inquiries with at least 85% accuracy.
• AI technologies can potentially provide an additional $1 trillion each year in the value of global banks.
• The global AI in banking market is expected to grow at a CAGR of 32.6% between 2021 and 2030.
• In 2019, North America accounted for 35.3% of the total market size of global AI in banking.
• 63% of investment banks worldwide use machine learning.
• 60% of investment banks around the world use AI in predictive analysis.
• Banks have reported six times more leads collected using chatbots compared to traditional lead generation.
• By 2023, banks are expected to save $7.3 billion in operational costs due to the use of chatbots.
• Artificial intelligence expands loan accessibility, approving 27% more loan applicants and yielding 16% lower interest rates.
• In 2020, around 32% of banks were using artificial intelligence.
• 80% of banks are highly aware of how AI and machine learning can potentially benefit them.

Statistics of AI in Banking in the United States

1. Three-quarters of banks with more than $100 billion in assets report applying AI strategies.

(Business Insider)

One of the roadblocks to AI implementation is the cost. With larger-sized banks, they have more resources available to apply AI strategies to their systems and processes. While 75% of banks with more than $100 billion in assets are currently using AI strategies, only 46% of banks with less than this value in assets are currently implementing it.

2. 80% of banks are highly aware of how AI and machine learning can potentially benefit them.

(Business Insider)

A huge majority of banks worldwide are already beyond aware of the potential benefits of AI implementation. However, there are roadblocks that need tending to. For one, AI and machine learning are not cheap systems. That’s why a majority of banks that can implement AI are those with a high value of assets.

3. In 2020, around 32% of banks were using artificial intelligence.

(Business Wire)

This included the use of AI applications and technologies in voice recognition, image analysis, RPA, and predictive analysis, among others. Banks did this mainly to gain an advantage against their competitors in the market. AI has allowed banks to manage massive volumes of data at faster speeds.

Benefits of AI in Banking Statistics

4. The potential savings banks will get from AI applications is an estimated $447 billion by 2023.

(Insider Intelligence)

Artificial intelligence is shaping the way companies and consumers access and monitor their finances. With this kind of savings, banks are looking for new methods to implement this technology into their products and services, ranging from task automation to fraud detection.

5. By using AI, banks are generating nearly 66% more revenue from mobile banking compared to traditional banking.

(Finextra)

The revenue from mobile banking has increased drastically compared to the time when customers would visit banks physically—all thanks to AI implementation. Nowadays, you can send money to your friend by simply voicing a command through Siri and confirming the transaction via Touch ID.

6. Banks using Big Data analysis to generate their estimated profit have stated an average of 8% increase in revenue and a 10% reduction in costs.

(Finextra)

Applications that use artificial intelligence can gather and analyze huge amounts of data to help improve user experience. Data this huge can then be used in loan approval or fraud detection, among other things.

When it comes to credit cards, AI can help reduce delinquencies, which have risen by 1.4% in the US.

7. 35% of banks stated that data science and AI positively impacted the technologies around remote working and overall security.

(Allied Market Research)

Banks have seen the benefits of AI, particularly during the pandemic when consumer queries increased exponentially. Because of their foreseen benefits, these technological developments are expected to offer lucrative opportunities for the market to expand.

8. Artificial intelligence expands loan accessibility, approving 27% more loan applicants and yielding 16% lower interest rates.

(Datamation)

AI also has a tremendous impact on the lending industry. Lending institutions are now able to approve more loans at record speed.

What does this mean for these companies? Customers are more satisfied, interest rates are lower, and revenue has increased. Where we had to wait days or weeks for a loan to be approved by a lender, nowadays, digital options allow loans to be approved within minutes.

The Application of AI Chatbots in Banking

9. The prediction is that 95% of customer interactions will be supported by AI by 2025.

(Alacriti)

This will come as a result of increased investment in chatbots for customer service as more companies become interested in this AI technology. However, the increase in AI-supported customer interaction has to be effective and relevant.

Otherwise, this could irk customers and decrease customer satisfaction. Some people just prefer to speak to a live human being, after all.

10. The use of chatbots in the banking and health care sectors saves agents four minutes per inquiry compared to traditional call centers.

(Juniper Research)

The study was conducted in 2017, but it’s still applicable today. This time savings translates to monetary savings, particularly to the tune of $0.70 per inquiry.

11. By 2023, banks are expected to save $7.3 billion in operational costs due to the use of chatbots.

(Haptik)

During this year, bank customer service agents are projected to save around 862 million hours, which equates to almost 500,000 working years. The outlook for conversation AI in banking seems promising as it helps banks acquire and serve more customers.

12. Banks have reported six times more leads collected using chatbots compared to traditional lead generation.

(Haptik)

These lead-generation chatbots are embedded on the bank’s mobile app or website to start conversations with customers. Their goal is to find out what the customers want to buy and then pique their interest with various solutions that will appeal to them. The leads are then endorsed to the sales team to complete the sale.

13. By 2027, the revenue share contribution of chatbots is projected to dominate other solutions in global AI in banking.

(Emergen Research)

The revenue share of chatbots is expected to increase at a whopping CAGR of 43.1%. Among all AI solutions applicable to banking, this holds the highest revenue share contribution.

This coincides with the previous statistic that customer service has the highest revenue share contribution when it comes to the usage of AI as well. Chatbots help banks streamline repetitive back-office tasks, so the segment is expected to grow within the forecast period.

In Which Sectors of Banking Is AI Used?

14. 56% of financial companies implemented artificial intelligence in risk management.

(Business Insider)

Artificial intelligence contributes to risk management by being more effective in understanding and mitigating risks. This technology helps banks monitor streams of big data and provide insights in real-time to help protect banks from losses and improve ROI for customers.

15. 52% of financial companies implemented artificial intelligence in revenue generation by coming up with new processes and products.

(Business Insider)

Banks use artificial intelligence to drive up revenue. AI helps finance companies come up with new products to offer to customers and new processes that will build on existing solutions to solve complex problems. This adopted technology also helps banks provide personalized services, which drives up customer satisfaction.

16. 63% of investment banks worldwide use machine learning.

(Statista)

Investment banking is a high-stake industry, and machine learning is used broadly in front, middle, and back offices. Machine learning can be used to increase a firm’s transparency in line with ESG regulations, improve risk management practices, and enable firms to perform better in trading by keeping their finger on the pulse of the market.

17. 60% of investment banks around the world use AI in predictive analysis.

(Statista)

In 2017, the Dutch bank ING launched a tool called Katana. This piece of technology was designed to use predictive analytics in helping traders come up with a price when buying and selling bonds on behalf of their clients. The basis of this analysis was both real-time and historical data.

Dutch bank ING’s use of Katana increased the speed of pricing decisions in around 90% of all trades and reduced the trading cost by at least 25%.

18. Globally, 58% of investment banks use virtual assistants, such as chatbots.

(Statista)

To offset rising costs and declining revenues, investment banks have implemented various artificial intelligence strategies in their processes—one of which is virtual assistants or chatbots.

These computer programs can hold conversations with customers via text or audio. Highly advanced chatbots can hold human-like conversations and are highly efficient and accurate.

19. 45% of investment banks worldwide have implemented robotic process automation.

(Statista)

RPA or robotic process automation requires low investment and not much time to automate manual processes. Despite this, the benefits are massive. RPA can reduce cost and improve efficiency in back-end processes. It also helps provide a controlled and secure environment, which is vital in investment banking.

What Does the Future Hold For AI in Banking?

20. By 2024, the use of online and mobile banking in the US will increase to 72.8% and 58.1%, respectively.

(Insider Intelligence)

Although the transition from traditional banking platforms to digital and mobile banking had already started before the pandemic, it has undoubtedly amplified the transition as lockdowns were implemented globally and more consumers looked for self-service options.

The increased need for online and digital banking is a critical reason why AI implementation needs to be successful in this dynamic industry.

21. The global AI in banking market is expected to grow at a CAGR of 32.6% between 2021 and 2030.

(Business Wire)

In 2020, the global market size of AI in banking was $3.88 billion. By 2030, it’s expected to reach a little over $64 billion in value. This is due to the increased adoption of AI to advance digitization in banks and other financial services companies.

By region, North America held the biggest market share in AI in banking, owing to the fact that the demand for modernization in banks has been increasing as of late.

Global Statistics for AI in Banking

22. In 2019, North America held the largest market share in global AI in banking.

(Emergen Research)

North America accounted for 35.3% of the total market size of global AI in banking. This is expected to continue in the coming years due to banks in the region increasing their focus on enhancing banking processes using advanced technology.

It should be noted that there is also an increasing demand for risk management solutions that are highly effective. Europe is also expected to have significant revenue growth.

23. In 2019, deep learning and machine learning accounted for the biggest market share in AI in banking.

(Emergen Research)

That year, this segment in AI applications accounted for 38.9% of the total market size. Other segments include natural language processing, computer visions, and more.

The machine learning and deep learning segment are anticipated to have the biggest revenue share in the market because of their increasing implementation for risk analysis. It will mainly be used to effectively predict which borrowers are likely to default on their loans.

24. The customer service application of AI is expected to have the biggest revenue share contribution to AI in banking around the world.

(Emergen Research)

By 2027, this application segment of AI is anticipated to reach $56.94 billion in value when it comes to revenue. Other applications include back office, financial advisory, compliance and security, risk management, and others.

However, all these other AI uses fall far behind in value compared to customer service. AI has helped banks provide 24/7 customer service to address customer complaints and queries promptly.

25. AI technologies can potentially provide an additional $1 trillion each year in the value of global banks.

(McKinsey & Company)

Despite knowing this, many banks worldwide struggle to migrate from experimenting with AI for specific processes to scaling it across the organization. They mostly lack a clear AI strategy, which is also attributed to an outdated collaboration strategy between technology and business teams in the banking sector.

26. At the beginning of the COVID-19 pandemic, the use of mobile and digital banking worldwide increased by 20% to 50%.

(McKinsey & Company)

With lockdowns implemented globally as a result of the pandemic that shook the economy of the world, people turned to online options for their banking needs. Globally, an estimated 15% to 45% of consumers want to lessen their branch visits even after the pandemic ends.

This increase in digital options is supported by AI applications, and the increase in demand will also drive up the use of AI applications in various banking processes. It’s safe to say that banks should brace themselves for this change.

Real-Life Successes of Artificial Intelligence in Banking

27. The biggest bank in Denmark, Danske Bank, implemented a deep learning tool for fraud detection that proved 50% more accurate at fraud detection and 60% more effective in reducing false positives.

(Datamation)

In line with the increased accessibility of banking services, fraud became commonplace in banks as well. Machine learning is typically faster than humans when it comes to data point connection, and they’re more accurate too. This attribute helps machine learning be an effective way to combat identity theft and fraud.

The larger the data they process, the more accurate these systems become. So, the more banks use them, the better they become. As more banks implement AI for fraud detection, the occurrence of fraud should decrease significantly.

28. By the time 2020 started, 12.2 million customers of Bank of America were already utilizing Erica, the bank’s chatbot.

(Alacriti)

Along with other financial institutions, Bank of America has been investing in virtual voice assistants or chatbots to improve their customers’ online experience and significantly reduce costs. While some financial services companies hire their own staff to develop their chatbots, others outsource development.

29. HDFC’s Electronic Virtual Assistant (EVA) has responded to more than 5 million inquiries with at least 85% accuracy.

(Haptik)

EVA uses natural language processing to understand user inquiries and respond with appropriate and accurate information fetched from thousands of sources—all in a matter of milliseconds.

The bot has been deployed on Google Assistant, Alexa, and several other platforms.  HDFC’s AI-powered chatbot holds more than 20,000 daily conversations with customers worldwide.

Related Questions (FAQ)

How many banks are using AI?

As artificial intelligence technology grows, more industries and companies are starting to adopt it as they see its advantages in their respective fields. In banking and finance, almost 40% to 50% of providers currently use AI in their processes. They’re taking advantage of technology as they see fit.

How is AI being used in banking?

Artificial intelligence is used in almost every process in the banking sector. It is implemented in risk management, revenue generation, customer experience, fraud detection, monitoring market trends, loan origination, data collection and analysis, regulatory compliance, and more.

How is AI changing the banking sector?

Since its inception and usage, AI has helped in numerous facets of banking. For one, it helps banking and financial service providers streamline their processes, manage customer requests, and make smarter and faster decisions. They also help reduce risks by preventing fraud and money laundering.

What is the future of AI in banking?

Regarding the banking industry, artificial intelligence has a wide array of practical uses. It has already gone beyond something experimental. Banks will continue to use AI to improve products and digitize their processes. By 2023, AI is forecasted to save banks a whopping $447 billion.

What are the challenges of using AI in banking?

In implementing AI technology in banks, a few challenges are involved. For one, legacy banking systems may make it harder for banks to implement AI. Additionally, there’s a shortage of experience and skills to implement AI accurately. Lastly, AI can be quite costly, which can be a hindrance for some.

Conclusion

You now have a ton of information at your fingertips. You know the state of AI in banking and how it is being used across the industry. You’ve learned about many of the statistics on AI in banking, and you can use these to help you make smart decisions about what kind of AI to invest in as a bank or lender.

But if there’s one thing we hope you take away from this post, it’s that this technology is still very new and rapidly changing. There will always be more data to collect, more research to conduct, and new ways for banks to use this technology. As you gain experience with AI in banking, don’t be afraid to experiment with different strategies and find the ones that work best for your business!

We hope you’ve found this information helpful and interesting—if so, please share it with your friends and colleagues who might also be interested in AI in Banking!

If you have any questions or comments about this information, feel free to reach out via email. We always love hearing from you.

How Does Stripe Make Money? Business Model of Stripe

200+ Catchy Bank Slogans and Taglines

Top 3 FREE AI Chatbots for Websites in 2023

231 Financial Advisor Company Names to Acquire New Clients

46 AI Replacing Jobs Statistics To Leave You Speechless

372 Artificial Intelligence (AI) Company Names

Sources

• Alacriti
• Allied Market Research
• Business Insider
• Business Wire
• Datamation
• Emergen Research
• Finextra
• Haptik
• Insider Intelligence
• Juniper Research
• McKinsey & Company
• Statista

We’re sure you’ve been searching for the latest statistics on the benefits of preschool. After all, it’s a topic that can have a major impact on your life, and you want to be armed with the most up-to-date information possible.

And we know how hard it is to find the right statistics. We’ve been there! We’ve spent hours scouring the internet looking for relevant data on this topic, only to be left with a list of statistics that weren’t relevant or weren’t current. And then we had to spend even more time sorting through them all to see if any of them were actually useful.

So we decided to make things easier by collecting all of the most relevant Preschool vs. No Preschool statistics in one place.

Whether you’re a parent looking for some reassurance about whether or not to send your child to preschool, or a teacher who wants some data to back up your argument for more funding in early childhood education, we’ve got you covered. Our list of statistics is easy to digest and broken down by topic so you can find exactly what you need quickly.

We hope this resource helps you make an informed decision about whether or not preschool is right for your child!

Preschool Vs. Non-Preschool Statistics (Editor’s Choice)

We discovered many incredible statistics that show the positive impact of early learning. That said, not all preschool programs can offer the same benefits. Here are some of the most mind-blowing stats we found about the effects of preschool on children.

• 61% of children have a regular child care arrangement.
• 30% of American kids go to private preschools.
• Preschool is associated with lifelong well-being.
• Kids who don’t attend preschool are 25% more likely to drop out of high school.
• At-risk children attending preschool have a 44% higher high school graduation rate.
• Children who attend preschool are a third of a year ahead of other students.
• Preschoolers are 12-14 months ahead of their peers in pre-literacy and language skills.
• Highly trained teachers in early childhood education deliver better results.
• Investing $1 in quality preschool gets the country a potential investment return of $2.50 to $17.
• Spending too much time in preschool can lead to behavioral problems.

As you can see, this topic is much more complicated than we initially thought. Is preschool worth it? Keep on reading if you want to discover the ups and downs of preschool and how it affects children’s lives in the US.

Short-Term and Long-Term Benefits of Preschool Statistics

1. Nearly two-thirds of children have a regular childcare arrangement.

According to Dubs&Dash analysis, there are more than 100 studies suggesting preschool is beneficial. That seems to be driving the number of kids aged 3-6 in childcare up, which grew by 6% in 2012. About 61% of American children have a regular childcare arrangement, and the remaining 39% don’t.

(Dubs&Dash)

2. Preschool doesn’t come cheap.

About two-thirds of children are enrolled in preschool, and 30% go to private childcare centers. These kids get all the benefits from early education, yet this doesn’t come cheap for the family.

Preschool tutoring for a 4-year-old costs about $3,900 in Mississippi and about $11,700 in Massachusetts. Living in more attractive neighborhoods means more expensive preschool centers. Sometimes, the prices go up to a fantastic $39,525 a year.

(Child Aware of America)

3. Preschool makes kids ready to learn and brings other benefits.

Statistics show that less than half or about 48% of kids from low-income families start elementary school ready to learn. This figure is significantly higher at 75% among children from middle-income families. The latter is more likely to send their kids to preschool, where they acquire the skills that enable them to succeed later in life.

The more we research the effects of preschool, the more we learn that there are many early benefits. Some of the most notable ones are:

• Learning from a young age through play positively affects brain development.
• Inspires curiosity in children, which heavily affects academic performance.
• It helps with emotional development and encourages positive self-worth and self-esteem.
• It helps with social development and creates positive behavior.
• Creates a desire to learn past preschool age.
• Leads to better scores on achievement tests.

(Brookings Institution)

4. Preschool is associated with lifelong well-being.

Research revealed a correlation between lifelong well-being and formal schooling, such as preschool and kindergarten.

The study included 115 early childhood programs and measured short-term and long-term outcomes. Some domains included behavior and emotion, cognitive achievement, development, and health. Out of those 115, 102 programs were found to have a lifelong impact on children’s well-being.

(Rand)

Preschool and Children’s Development Statistics

5. Preschool can be crucial for children’s learning and development.

Some studies discovered that children enrolled in high-quality preschool programs have better health, cognitive, and social-emotional outcomes than those not registered. In fact, preschoolers were 12-14 months ahead of their peers in pre-literacy and language skills when they started kindergarten.

In the US, 59% of all 4-year-olds are not attending any preschool program. This includes state preschools, Head Start, or other special education services. This is a concerning percentage because of how many benefits preschoolers have compared to the others.

(ed.gov)

6. Children enrolled in quality childcare show better language and cognitive development.

An interesting study from the early 90s followed 1,000 demographically and ethnically diverse children for the first four years of their life. Children in high-quality non-maternal child care had better language and cognitive development in the first four years of their lives.

In addition, childcare children were more cooperative in the first three years of their lives. This is compared to those enrolled in low-quality programs and those who did not attend any preschool.

(NICHD)

7. Children who spend more time in childcare show more behavioral problems.

It looks like balance is everything, and quality outweighs quantity when it comes to preschool.

Children who spent more hours in non-maternal child care showed more behavior problems in both preschool and kindergarten classrooms than those who spent fewer hours. Moreover, children who attended preschool centers showed more behavior problems than those in other childcare arrangements.

(NICHD)

8. Preschool prepares young children for school.

A report by Rand shows that high-quality preschool programs improve school readiness for all enrolled children. There was no significant difference between part-day or full-day preschool programs and those one or two years long. But there was a substantial difference between children who went to preschool and those that didn’t.

(Rand)

9. Children who attend preschool are a third of a year ahead of other students.

With the help of eight different universities, the Society for Research in Child Development analyzed 84 preschool programs in the US and discovered that children who were enrolled in preschool were at least a third of a year ahead of children who never went to early child care.

The most noticeable difference between the two groups of children was in the reading and math subjects. Moreover, children who went to preschool had higher high school graduation rates and more years of learning.

(Society for Research in Child Development)

10. Preschool children retain a statistical advantage in math and reading skills.

The Abecedarian Project started in the 70s and followed children’s progress for over 40 years. All children were closely monitored from birth till the age of five. Afterward, several follow-up studies were conducted when the children were ages 12, 15, 21, 30, and 35.

As we already mentioned, preschoolers perform at a higher level in math and reading tests than children who never attended preschool.

What is more surprising is that this advantage continues to follow the children till they are adults. In fact, the follow-up studies showed us that children from the Abecedarian Project retained a statistical advantage in math and reading skill, had significantly higher chances to attend a 4-year college, and were less likely to suffer from depression.

(The Carolina Abecedarian Project)

11. Playful learning experiences can lead to building healthy brain connections in toddlers.

According to a paper by the LEGO Foundation, learning through play is crucial for toddlers. All playful experiences create a unique context for rich and supportive learning in early childhood. It is because toddlers experience meaningful social interactions with their caregivers, which helps them build healthy brain connections.

(The LEGO Foundation)

12. Playful education causes deeper learning in children between 3 and 12 years old.

It seems that playful experiences are not only beneficial for toddlers. When learning through play, children between the ages of 3 and 12 learn how to absorb new information through positive emotions such as joy, meaningfulness, and social interactions. That is especially true for preschools that encourage learning through play.

The paper shows us that children can gain a deeper understanding by connecting the concepts and skills they discover with real-world examples. That is why playful experiences lead to richer learning, more opportunities to practice their knowledge, and inspiring new ideas in school or at home.

(The LEGO Foundation)

13. Highly trained teachers in early childhood education deliver better results.

There is no doubt that preschool has a lot of benefits, but things are not as simple as they should be.

Many studies in the past 50 years show a significant difference between the benefits of high-quality preschools compared to the rest. In addition, high-quality preschools usually come with highly trained teachers in early childhood education, which helps children have better results.

In short, children enrolled in high-quality programs experience both temporary and long-lasting benefits from going to preschool. On the other hand, some children enrolled in low-quality programs have a short-term advantage over those who never went to preschool. Yet, they lose the long-term benefits and score the same in many areas as children who never went to preschool.

(Brookings)

14. High-quality preschool leads to high school and college graduation, and career success.

Children who attend high-quality preschools with highly trained teachers grow up to have successful careers. Moreover, the same study shows us that investing in early learning leads to an investment return of $8.60 for every $1 spent. About half of these earnings come from higher profits from children when they grow up.

The potential investment return for every $1 the country gives to quality preschool education is between $2.50 and $17.

(US Department of Education)

At-Risk Children and Preschool Statistics

15. High-quality preschool has the most significant impact on low-income children.

A review of 49 studies on the impact of high-quality early childhood education on low-income children showed that the benefits heavily outweigh the costs.

The assessment measured social and emotional development outcomes, academic performance, crime, and teen births and discovered that these programs have both short-term and long-term benefits for low-income children.

(Washington State Institute for Public Policy)

16. At-risk children attending preschool have a 44% higher high school graduation rate.

The Perry Preschool Project provided high-quality preschool education for 3 and 4 years old African American children who lived in poverty. The Project lasted from 1962 till 1967. About 75% of the children (3-year-olds) attended the program for two years, while the rest (4-year-olds) were there for one year.

A follow-up study was made when the children were at the age of 27. The results showed a 44% higher high school graduation rate. Moreover, almost all children had one full year of schooling more than the rest.

(Perry Preschool Project)

17. At-risk kids enrolled in preschool had 28% fewer chances to develop alcohol or drug problems.

The Chicago Longitudinal Study tracked 1,539 low-income, minority children growing up in poverty neighborhoods in Chicago between 1985 and 1986. Most of the kids were African Americans (93%) and were marked as at-risk because of their social-environmental disadvantages. The children were tracked till they turned 28.

The study showed promising results. The children who went to high-quality preschool had 28% fewer chances of developing alcohol or drug problems. Moreover, they had lower chances of ending up in prison during adulthood. They even had 22% lower chances of being arrested for a felony and 24% more chances to attend a 4-year college.

(Chicago Longitudinal Study)

18. Preschool has a life-long impact on a child’s future.

Not only does preschool have early-life benefits, but it also has significant later-life benefits. Not attending preschool, especially for “at-risk” children, can lead to many issues later on.

Here are some examples:

• 25% more likely to drop out of high school.
• 40% more likely to become a teenager parent.
• 60% more likely not to get a college education.
• 70% more likely to get arrested for violent crimes.

As you can see, one thing leads to another. And they can all often impact someone’s life even before that person becomes an adult.

(Ounce of Prevention)

19. Public pre-K programs may lead to academic struggles in students.

There is no doubt that state-funded preschools, also known as pre-kindergarten (pre-K) programs, are expanding with lightning speed. These programs are specifically designed to provide early childhood education for low-income kids. Until recently, it was believed they were making a difference in these children’s lives.

Unfortunately, based on a study including 2,990 children from low-income families, they performed worse than children who did not attend any preschool. The analyzed data showed that the children had the most substantial adverse effects in sixth grade. They also had higher chances of misbehaving during classes, skipping school, and struggling academically in the following years.

The reasons are still being discussed, but according to similar studies, highly trained teachers in early childhood learning are making the difference. Unfortunately, most pre-K programs do not offer these types of teachers.

(NIH)

20. Enrollment in Head Start shows no impact on language and literacy development.

Unlike most high-quality preschool programs, it seems that Head Start doesn’t have the desired long-term impact on kids.

There were significant differences between the children who went through Head Start and those who didn’t attend any preschool program during their studies. Yet, all impacts disappeared by the time the children reached first grade.

In addition, most children enrolled in Head Start showed little to no retention in vocabulary and literacy.

(ACF)

21. Most positive effects from pre-K are reversed by second grade.

A study including 18,000 children showed that the children who went to preschool were much more prepared for kindergarten than the rest. That said, all results seemed reversed when the children reached second grade. Compared to the children who went to pre-K, those who never attended any preschool program were ahead.

(Brookings)

22. Preschool can’t make up for the effects of poverty.

Despite all the benefits of preschool, it still cannot nullify all the negative impacts of poverty. A study by The American Federation of Teachers shows that kids living in poverty have a 30-million-word gap by the age of 3. Moreover, the vocabulary these kids learn is often negative, like prohibitions instead of affirmations.

The results haven’t been the best. Even with an additional effort from preschool professionals dedicated to growing the number of words children from low-income families have. This led to the conclusion that preschool isn’t enough even though it has benefits for the kids’ overall development.

(AFT)

Conclusion

It’s clear that the impact of preschool is far-reaching. It affects everything from how well students do in school to their likelihood of getting into college to how likely they are to get married, have children, and live long lives. These statistics show us just how important early education really is—and what we can do about it.

The more you know about the benefits of preschool, the more likely you are to send your child. And the more likely you are to send your child, the better their chances are of living a healthy and happy life! So make sure to share this article with anyone whose opinion matters to you—and if they aren’t convinced yet, keep sharing until they get it.

We hope this article has given you some food for thought about the benefits of preschool and encouraged you to push for more funding for quality early childhood education programs. If you want more information on this topic, feel free to reach out!

473 Preschool Slogans To Help Convince Parents

413 Preschool Name Ideas To Make Moms Smile

Sources

• Dubs&Dash
• Child Aware of America
• Brookings Institution
• Rand
• ed.gov
• NICHD
• Rand
• Ounce of Prevention
• Society for Research in Child Development
• The Carolina Abecedarian Project
• The LEGO Foundation, Brookings
• U.S. Department of Education
• Washington State Institute for Public Policy
• Perry Preschool Project
• Chicago Longitudinal Study
• NIH
• ACF
• Brookings
• AFT

You’ve got a lot on your plate. You’re trying to figure out how to make ends meet, how to pay for your kids’ college education, and how to feed yourself and your family.

We know that feeling—and we know what it’s like to go searching for the latest statistics on food insecurity only to come away empty-handed. That’s why we’ve created this list of food insecurity statistics for you. These numbers will help you understand the scope of the problem and get equipped with the knowledge you need to fight against it.

You can use these statistics in a number of ways: share them with friends and family who might not be as familiar with food insecurity as you are; use them when talking with legislators about why they should support legislation that helps low-income families, or even just keep them handy whenever someone asks you what they can do to help end hunger in America (because there’s always someone who wants to know).

Global Food Insecurity Statistics

1. 83 countries experienced significant food insecurity during the pandemic

(World Bank)

While the causes of food insecurity are diverse, many researchers agree the pandemic has played a significant role in the increasing number of people going hungry around the world today.

According to phone surveys conducted by the World Bank throughout the first two years of the pandemic, around 83 countries were suffering. These countries had a significant number of people running out of food, or reducing food consumption during the pandemic.

According to the World bank, this is a worrying discovery, as reduced consumption of nutritional food could threaten serious health issues, and reduce the development of young children.

2. The number of people affected by hunger worldwide increased to 9.9% in 2020

(FAO)

Annual reports from the Food and Agriculture Organization of the United Nations highlighted a growing prevalence of food insecurity and hunger around the world in recent years. Though world hunger statistics remained largely unchanged between the years 2014 and 2019, the prevalence of “undernourished” individuals increased to 9.9% in 2020 (up from 8.4% in 2019).

According to the 2020 SOFI report, it’s estimated somewhere between 720 and 811 million people worldwide struggled with food insecurity in 2020. What’s more, approximately 118 million more people were dealing with hunger and malnutrition in 2020 compared to 2019.

The researchers behind the report suggest around 660 million people will still be dealing with hunger in 2030, thanks in part to the lasting effects the pandemic has had on the global food security landscape. This number is equal to double the current population of the US.

3. 9% of the world’s population are “severely” food insecure

(Our World in Data)

Research conducted by “Our World in Data” highlights significant problems with food insecurity throughout the world today. According to a report published in 2018, approximately 9.2% of the world’s population was defined as “severely food insecure.” In other words, these people had inadequate access to sufficient quantities of food.

The region with the highest levels of food insecurity, according to the study, was sub-Saharan Africa, where around one-third of all residents are severely insecure.

On a wider scale, the charts from 2018 found around 697 million people were severely food insecure, with more than half of those living with food insecurity located in Asia and 40% in Africa. Only around 10% of severely food insecure individuals were located in Oceania, Europe, and the Americas.

4. Food Insecurity is most prevalent in Asia as of 2020

(FAO)

The FAO (Food and Agriculture Organization) SOFI report for 2021 found the problems of food insecurity are growing particularly significantly in the Asian landscape. Of the approximately 768 million people defined as “undernourished” in the world today, 418 million live in Asia.

Comparatively, around 282 undernourished people live in Africa, and a further 60 million are located in Latin America and the Caribbean.

5. One in four people are moderately food insecure

(Our World in Data)

Levels of “food insecurity” in regions around the world are often measured according to severity. Those with “moderate food insecurity” generally worry more about the ability to access or afford a nutritious and healthy diet. Around one in four people worldwide are suffering from moderate levels of food insecurity as of 2017.

Interestingly, Our World in Data found food insecurity is a major issue across all regions, though numbers are greater in Africa and South Asia. Even high-income areas around the world had some instances of food insecurity to report.

6. Global food insecurity rose more in 2020 than in the previous five years combined

(FAO)

According to the Food and Agriculture Organization, the presence of food insecurity issues has been steadily rising for some time now, since around 2014. However, the estimated increase seen in 2020 was particularly dramatic, equalling the previous five years of growth combined.

In 2020, Nearly 1 in 3 people throughout the world didn’t have access to adequate food for a range of reasons, from pandemic restrictions to supply chain issues. This is equal to an increase of around 320 million people without the right access to food compared to the year before.

Food insecurity issues defined as either “moderate” or “severe” is now estimated to affect more than 30% of the world’s population.

7. Globally, 1 in 10 people don’t have enough food to eat

(Action Against Hunger)

According to a report from Action Against Hunger, inspired by the UN Hunger Report, globally, 1 in 10 people do not have access to enough food to eat. What’s more, 3.1 billion people cannot afford a nutritious and healthy diet. The problem is particularly severe among children.

The report notes around 2.3 million children currently die every year as a result of malnutrition. What’s more, 75% of malnourished children do not get the treatment they need. Thanks to the influence of the pandemic, this problem could worsen in the months to come.

Action Against Hunger notes around 10,000 more children under the age of five could die as a result of food insecurity and malnutrition following the pandemic.

8. 70% of high-income countries are experiencing food price inflation

(World Bank)

A report issued by World Bank notes the causes of food insecurity around the world are often varied and not only linked to the rise of the global pandemic. As of June 2022, the Agricultural Price Index rose around 34% higher than the average price in January 2021.

Domestic price inflation is also increasing around the world. Approximately 70% of higher-income countries are experiencing significant food price inflation. The problem only gets worse among lower-income countries. 89% of lower-middle income countries are facing food price inflations, compared to around 94% of low-income countries.

Over the coming months, the World Bank predicts it will become increasingly difficult for famers to access fertilizers, thanks to the war in Ukraine, which will further damage food production in various regions. What’s more, 18 countries have implemented a total of 31 food export policies since the start of the war in Ukraine.

9. Global hunger levels reached their highest point in 2021

(Global Report on Food Crises)

Globally, the presence of hunger throughout countries around the world is rising. As of 2021, the Global Report on Food Crises revealed almost 193 million people were defined as “acutely food insecure.” This was an increase of around 40 million more people than the previously recorded high introduced in 2020.

According to the World Bank, insecurity, conflict, and the global pandemic are all factors increasing food insecurity. The FAO and WFP have also warned that acute levels of food insecurity might worsen within at least 20 countries from June to September 2022.

Food Insecurity Among Children

10. Between 2019 and 2020, 10.8% of children lived in households facing food insecurity

(CDC)

The national health interview survey conducted by the CDC revealed some troubling news about the impact of food insecurity levels on children. According to the report, between the years 2019 and 2020, around 10.8% of all children in the US between the ages of 0 and 17 had experienced food insecurity issues within 30 days of the report.

The number of children experiencing food insecurity was much higher for black and Hispanic children at 18.8% and 15.7%, respectively, compared to white children at 6.5%. Additionally, children with disabilities were more likely to be affected by food insecurity.

Around 19.3% of children with disabilities were dealing with households, compared to only 9.8% of children without a disability. Family characteristics such as the number of children in the household and family structure were also associated with risk levels.

11. Children living in larger central metropolitan areas are more likely to be food insecure

(CDC)

A report conducted by the CDC into the impact of food insecurity on the lives of children found children in certain areas of the US were more likely to suffer from food insecurity.

The children in the survey located in larger central metropolitan areas were the most likely to have food insecurity issues, at 13.2%. Comparatively, food insecurity issues are faced by around 7.4% of children in fringe metro areas and 10.5% of children in smaller metropolitan areas.

Notably, the report also revealed that children with only one parent were more likely to experience food insecurity. Around 19.9% of children with only one parent lived in a food insecure household, compared to 7.7% of children with both parents.

Additionally, the number of children experiencing food insecurity increased with the number of children present in the household. 9.4% of children in homes with fewer than three children experienced food insecurity, compared to 13% of children in households with more than three children.

12. More than 200,000 children skipped meals because of food insecurity in the UK

(Food Foundation)

Food Foundation reports demonstrating the severity of food insecurity within the UK indicate that some households are cutting down on food and skipping meals on a regular basis. The report found around 5 million people in the UK living in households with children had experienced food insecurity within a month of pandemic lockdowns.

According to the report, parents have struggled significantly with shielding more than 2 million children from food insecurity, and around 200,000 children had been forced to skip meals because their families couldn’t access enough food in the pandemic.

The report suggests part of the problem comes from lack of access to food for children unable to attend school and eat free school meals. At the same time, 17% of parents in NHS worker families had been forced to skip meals or have smaller meals than usual due to food insecurity. A further 9% of these individuals said they haven’t eaten for a full day due to lack of food access.

Food Insecurity Trends and Challenges

13. Healthy food is out of reach for around 3 billion people

(FAO)

Notably, the FAO also found certain kinds of food are more inaccessible than others to regions all over the globe. According to the 2021 report, the higher cost of healthy diets, combined with significant levels of income inequality has prevented around 3 billion people from accessing healthy food.

Though the number of people unable to eat healthy food is slightly lower than it was in 2017, the FAO believes it will increase following the pandemic. Despite this, the FAO also notes that switching public communities towards a healthier diet would contribute significantly to reducing climate change and health costs by 2030.

14. Black and Latino households are affected heavily by food insecurity

(USDA)

Reports on rising levels of food insecurity across the US conducted by the USDA government website found around 38 million Americans were living in households struggling with food insecurity in 2020. However, some households were experiencing more problems than others.

For instance, black (21.7%) and Latin (17.2%) households were more likely to be impacted by issues with food insecurity than white households. Food insecurity rates for these homes during 2020 were triple that of white households for black homes, and double for Latin homes.

Notably, the food insecurity rate was also found to be significantly higher in the South of America (12.3%), followed closely by the Midwest, then the West and Northeast.

15. Food insecurity more than doubled during the pandemic for Americans

(North-western University)

Before the pandemic, approximately 10.5% of all US households were dealing with food insecurity issues, according to a USDA government report in 2020. However, when the pandemic hit, the problem worsened significantly. One estimate given by researchers at Northwestern University suggested food insecurity more than doubled due to the economic issues of the crisis.

Around 23% of homes were considered to be affected by food insecurity during 2020. Additionally, further reports from the Brookings Institution found 27.5% of households with children were food insecure. This meant around 13.9 million children were struggling with a lack of access to food.

16. Around 6% of people live in a “food desert”

(USDA)

While there are many factors that can potentially contribute to food insecurity in the world today, the USDA notes that the location of families can be particularly significant. Around 19 million people, or around 6% of the US population, are currently living in “food deserts.” This basically means it’s more difficult for them to access food than the average population.

What’s more, for people living in food deserts, food can be costlier. People in low-income communities can struggle to afford nutritious foods in these areas more than most. For instance, in food deserts, people can pay up to 5% more for simple products like milk.

Notably, according to Feeding America, while food deserts only make up around 63% of counties in the country, they’re responsible for around 87% of counties with the highest food insecurity rates.

17. Conflict is driving food insecurity levels up

(Global Food Crisis Report)

According to the Global Food Crisis report, approximately 193 million people across 53 countries are experiencing levels of “acute food insecurity” as of 2021. The report suggests there are a number of factors increasing food insecurity levels around the globe, including the rising “conflict” levels across communities.

Around 139 million people in approximately 24 countries and territories have been driven into food insecurity issues by conflict. This is an increase from approximately 99 million people in 2020. Even before the war in Ukraine, food insecurity levels were rising. However, the Global Food Crisis report suggests issues prompted by the war, such as a rising cost of fuel, fertilizer, and wheat are making matters significantly worse.

The study also suggests that increased stress on food systems, prompted in part by the Russian and Ukraine war could lead to around 323 million people experiencing acute levels of hunger by the end of 2022. Out of around 55 countries with food crisis levels, 36 were previously dependent on Russian and Ukrainian experts for over 10% of wheat imports in 2021.

18. 40 million people are facing emergency levels of hunger

(World Food Program)

As of 2021, the WFP (World Food Program) estimates around 238 million people are either already acutely food insecure or at high risk of becoming “food insecure.” Almost 40 million people across 36 countries were defined by the report to be facing “emergency” hunger levels.

Of critical concern within the report are the just under half a million people facing starvation and death across four countries: Yemen, South Sudan, Madagascar, and Ethiopia.

Notably, the report also highlighted those high levels of food insecurity are more common in some parts of the world than others. Around 70% of the people facing crisis levels of food insecurity in 2021 were living in 10 specific countries. These countries included Sudan, Pakistan, Ethiopia, The Democratic Republic of Congo, and Afghanistan.

Food Insecurity in the US and Canada Statistics

19. 89.5% of US households were food secure in 2020

(USDA GOV)

A report issued by the USDA Government website in 2020 found around 89.5% (116.35 million) of US households had a reasonable level of food security, whereas 10.5% (13.8 million) of US households were food insecure. Also, 6.6% (8.6 million) of households had very low food security, and 3.9% (5.1 million) had low food security.

While 14.8% of households with children were influenced by food insecurity, in 7.2% of those homes, only adults struggled with disrupted eating. Overall, 38.3 million US individuals experienced food insecurity issues, and 9.4 million adults had significant food insecurity problems.

20. In 2020, 9.6% of Canadians reported some level of food insecurity

(Canadian Community Health Survey)

Food insecurity issues are facing consumers in locations all around the world. According to a cross-sectional Canadian Community Health Survey collecting information between September and December 2020, the pandemic had a significant impact on food insecurity levels in Canada.

According to the report, which looked at the responses of 26,831 respondents over the age of 12, around 9.6% of all Canadians experienced some manner of food insecurity. This is actually slightly lower than the estimate predicted of around 12.6% in 2017 and 2018.

During the second wave of the pandemic, around 1 in 10 Canadians over the age of 12 reported an experience of food insecurity in their household within the previous12 months.

21. 1 in 8 Americans reduced food spending to pay for healthcare in 2021

(Gallup)

Notably, food insecurity can be heightened by an increased need to invest money in other areas of life, according to studies. According to a report conducted by the West Health-Gallup brand, around 46 million Americans feel they’re unable to afford quality health care.

Around 1 in 8 Americans, or 12% in total said they had actually reduced their spending on food to pay for healthcare and treatment. Among the people who were earning less than $24,000 per year in the survey, around 25% were cutting back on food to manage healthcare costs.

Among low-income households, it was also common to cut back on utility spending to have more money left aside for care.

22. Households with children in the US have a higher rate of food insecurity

(USDA GOV)

According to a report from the USDA Gov website in 2020, households with children experience food insecurity more often. Rates of food insecurity among families with youngsters were around 14.8% compared to only 8.8% for families without children.

Married couples were generally more able to avoid food insecurity in households with children. What’s more, food insecurity was more common in certain areas. Non-metropolitan areas ranked at 11.6% compared to metropolitan areas at 12.7%.

Rates were particularly high in the south at 12.3%, compared with the Northeast at 9.3% and Midwest at 9.5%.

23. Households with single mothers had the highest levels of food insecurity in the US

(USDA GOV)

According to the USDA study on food security in 2020, households with children headed by a single female had the highest levels of “very low” food security, at 8.2%. Issues were also more significant for men living on their own (5.7%) and women living on their own (5.1%).

From a cultural perspective, households with people who were black, non-Hispanic (8%), and Hispanics (5%), also had a higher rate of very low food security than the national average. Additionally, households with incomes significantly lower (185%) than the poverty line experienced increased levels of food insecurity.

24. 84% of the counties in America where children struggle most with food insecurity are rural

(Save the Children)

According to “Save the Children,” throughout America, a significant portion of the children suffering most with food insecurity and hunger are living in rural and high-poverty locations. 84% of the counties where the most children experience food insecurity are high-poverty rural areas.

Among over 2,600 counties assessed, the counties ranked lowest overall were mostly considered “poor”, “rural”, and concentrated in the south. The highest food insecurity rate in the nation was in Louisiana, East Carroll Parish, according to the report. Here, around 40% of children struggled with hunger, similar to the rates in Peru and Bangladesh. North Dakota, Slope County had the lowest child hunger rates at only 6%.

Food Insecurity in the UK Statistics

25. Nearly 6 million adults struggled to get enough food between September 2020 and February 2021 in the UK

(Environment, Food, and Rural Affairs)

Despite being one of the richest countries in the world, the UK also has some of the highest food poverty rates among any European country. Around 6 million adults and 1.7 million children were unable to access enough food to eat between the months of September 2020 and February 2021, according to the Environment, Food, and Rural Affairs Committee

Follow up research into food insecurity in the UK has found the issue may be getting worse. Around 7.3 million adults and 2.6 million children were suffering from food poverty by the month of April in 2022, according to information from the Food Foundation.

At the same time, around 1 in 6 people in the UK used a food bank in March of 2022, indicating an increase in the number of citizens turning towards alternative sources of food.

26. 9% of Scottish adults experienced food insecurity during 2018

(Food.gov)

A report by Food.gov found approximately 9% of adults in Scotland had experienced food insecurity within the 12 months between 2017 and 2018. According to the report, these adults were worried they would run out of food either as a result of lack of money, or an inability to access food.

The study also found around 6% of all adults surveyed had eaten less than they should have because they were worried about being able to afford enough food. Around 3% of adults in the survey said they had run out of food entirely in the previous 12 months.

27. 7.3 million adults in the UK went without food in 2022

(The Food Foundation)

Data released by the Food Foundation in 2022 found a 57% jump in the number of UK households reducing their food intake or missing meals entirely. In April of 2022, 7.3 million adults said they had gone without food, or were unable to access food within the last month. Of this sample, 2.6 million households were also home to children.

The Food Foundation predicts continued increases in food insecurity are likely throughout the UK in the coming months, as a result of increasing National Insurance payments and Energy bills. 12.8% of households had smaller meals than usual in the report due to food affordability. A further 8.8% of adults said they haven’t eaten despite being hungry.

A total of 4.6% of households (equalling around 2.4 million adults) said they had not eaten for a full day because they couldn’t afford food.

28. In 1 of 6 local authorities in the UK, hunger rates are above 150% higher than the national average.

(University of Sheffield)

Studies conducted by the University of Sheffield indicate in one out of every 6 local authorities, the rates of hunger in the UK are over one and a half times greater than the national average. What’s more, in one in every ten local authorities, the rate of hunger is double the national average.

According to data gathered by the University of Sheffield, during January 2021, around 4.2% of adults around the UK reported they had been hungry or unable to eat at least once during the previous month. The data gathered by the research team found local authorities within Humber and Yorkshire were in the top 20% of the areas with the largest number of adults going hungry.

The number of adults going hungry in the UK is lowest within the East of England. Overall, the areas hit worse by higher levels of food insecurity included Wycombe, where about 14% of people were estimated to be hungry, and 30% had low access to food. This region was followed by Hull, where 13% of people were estimated to be hungry, and 1 in 5 struggled with access to food.

Conclusion

This is a tough topic, and as you can see from the statistics above, it affects hundreds of millions of people across the world.

We hope that these food insecurity stats have helped you better understand the scope of this problem, and we encourage you to do what you can to help those in need. You can start by donating food and other items to your local food bank or pantry, volunteering your time there, or even helping to raise awareness about food insecurity by sharing this article with others.

You might even consider starting a community garden in your area!

The key is to get involved and make a difference!

If you have any questions or comments about the statistics in this article, please let us know, and we will respond as soon as possible!

1221 Food Business Name Ideas That Nobody Can Resist

25 Functional Food Statistics To Get You Buzzed About Eating Healthy

507 Food Truck Name Ideas That Will Make You Hungry

Sources

• Action Against Hunger
• Canadian Community Health Survey
• CDC
• Environment, Food, and Rural Affairs
• FAO
• Food.gov
• Gallup
• Global Food Crisis Report
• Global Report on Food Crises
• North-western University
• Our World in Data
• Save the Children
• The Food Foundation
• UNICEF
• University of Sheffield
• USDA
• USDA
• USDA
• World Bank
• World Bank
• World Food Program