I discuss overdraft charges lots. I dislike the product as banks have been incomes billions from their most susceptible prospects. It’s also the realm the place fintech has had a dramatic impression.
Again in 2019, I wrote in regards to the motion in the direction of no overdraft charges as fintech corporations supplied higher choices for customers. This was years earlier than the CFPB put overdraft charges of their crosshairs.
The impression is now being felt on the nation’s largest banks. Right now, we discovered that overdraft payment income in 2023 was down 25% at JPMorgan Chase, Wells Fargo and Financial institution of America. The whole remains to be $2.2 billion which is an excessive amount of however change like this doesn’t occur shortly.
If and when the CFPB’s new overdraft guidelines come into impact this quantity will cut back dramatically. In the meantime, fintech corporations proceed to offer a higher various to overdraft charges.
Whereas we gained’t get to zero any time quickly, we are going to proceed to see decreased overdraft income at massive banks, which is a good factor for customers.
Overdraft income is on the decline, however current filings present that JPMorgan Chase and Wells Fargo stay by far the biggest mills of the controversial charges.
By Craig Ellingson
By Fintech Nexus Employees
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