Listen now | The Popping of the BaaS Bubble & What's Next for Bank-Fintech Partnerships| Fintech Business Weekly
Listen now | CFPB's Abrupt Reversal on 1033, Senate Advances GENIUS Bill| Fintech Business Weekly
One criticism of overdraft credit is that the fees seem borne disproportionately by low-income, Black, and Hispanic households. To investigate this concern, we surveyed around 1,000 households about their overdraft activity. Like critics, we find that these groups do tend to overdraft more often. However, when we control for respondents’ credit scores along with their socioeconomic characteristics, we discover that only their credit score predicts overdraft activity. While it’s not altog...| Liberty Street Economics