Fintech Nexus E-newsletter (February 9, 2024): Overdraft charges on the prime three banks down 25%

I speak about overdraft charges loads. I dislike the product as banks have been incomes billions from their most susceptible clients. It is usually the realm the place fintech has had a dramatic affect.

Again in 2019, I wrote in regards to the motion in direction of no overdraft charges as fintech firms offered higher choices for shoppers. This was years earlier than the CFPB put overdraft charges of their crosshairs.

The affect is now being felt on the nation’s largest banks. As we speak, we discovered that overdraft payment income in 2023 was down 25% at JPMorgan Chase, Wells Fargo and Financial institution of America. The entire remains to be $2.2 billion which is an excessive amount of however change like this doesn’t occur rapidly.

If and when the CFPB’s new overdraft guidelines come into impact this quantity will cut back dramatically. In the meantime, fintech firms proceed to supply a higher various to overdraft charges.

Whereas we gained’t get to zero any time quickly, we’ll proceed to see decreased overdraft income at giant banks, which is a good factor for shoppers.

Featured

> Massive banks have drastically minimize overdraft charges, however clients nonetheless paid $2.2 billion final yr

Overdraft income is on the decline, however latest filings present that JPMorgan Chase and Wells Fargo stay by far the most important turbines of the controversial charges.

From Fintech Nexus

> Beem companions with TruStage to supply extra monetary safety in case of lined job loss

By Craig Ellingson

Beem is partnering with U.S. insurance coverage, funding and expertise supplier TruStage to supply the latter’s Cost Guard Insurance coverage as an extra layer of economic safety for its members.

> Affirm produced one other strong earnings report; the market needed extra

By Fintech Nexus Workers

Affirm produced a strong earnings report with 48% income development and the corporate now has greater than 17 million lively clients

Podcast

> Luke Voiles, CEO of Pipe, on the optimum option to method small enterprise lending

The CEO of Pipe, Luke Voiles, discusses the fintech method to small enterprise lending and why it’s so vital to be in… Pay attention Right here.

Additionally Making Information

To sponsor our newsletters and attain 275,000 fintech lovers along with your message, contact us right here.