A survey by the Center for Social Impact and NAB reveals that almost one in five Australians don't have access to basic financial services.

This means they don't have at least two of the following: a basic bank account, a credit card, or basic home and car insurance.

Experts blame it on the cost of living. According to the survey, to enjoy these bank services, an Aussie would have to shell out an average of at least $1,700 a year.

People are obviously coasting along with difficulty.

"We're wealthy on average, but the average, I think, is misleading," NAB personal banking head Gavin Slater told News Limited.

He said that in reality, there is a big disconnect between the earning capacity of average Aussies and their living expenditures. "There are a lot of people earning a relatively low wage and the cost of living has increased," he said.

This scenario has given birth to the existence of payday lenders.

Payday lenders are those that offer short term loans unbound by any financial regulations. Since they do not follow prescribed banking standards, they can charge as much as 600 percent interest rate per annum.

Mr. Slater particularly noted the case of the youth and the "working poor." This segment of society is typically employed as casual workers earning between $20,000 and $25,000 per annum. With a low annual income and inability to enjoy basic bank services, they instead turn to payday lenders for financial support.

"The fact that there is a demand out there for it in Australia shows that the mainstream banking system is failing these people," Mr Slater said.

How to make mainstream banking more accessible to the majority of the population now becomes the biggest challenge for the country's financial system.

At present, figures are relatively high to maintain a basic transaction account, a credit card and basic home and car insurance.

According to the survey, an Aussie would need to spend at least $1,739 a year to avail the three most basic financial services.

Last year, it cost around $85 in monthly fees to maintain a basic bank account. This amount, a slight decrease from previous year's $88, included the cost of ATM withdrawals from foreign ATMS.

To maintain a basic credit card last year, it would cost about $711. This expense includes card fees and the projected interest on typical running balance. The amount of $711 is also lower than the previous year's $808. This is because the fees imposed for going over the limit have been terminated.

Among the three financial services, insurance remains as the most expensive to avail for families. Last year, average cost of basic home and car insurance was pegged at $943 per annum. This is the only financial service that marked an increase from $898 the previous year.

Survey shows that Australians are now spending an average of $627 a year on comprehensive car insurance. This does not include compulsory third party coverage. The amount marks an increase of 5.1 percent from previous year.

Meanwhile, basic home insurance also increased by 8.9 percent last year compared to 2011. Those who availed this type of insurance paid at least $316 in 2012.

According to the survey, 17.7 of the Australian adult population were "financially excluded" last year, meaning no access to basic financial services. This was a sharp increase of 14.7 percent from 2008 before the worldwide financial crisis.