I speak about overdraft charges lots. I dislike the product as banks have been incomes billions from their most weak clients. 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 offered higher choices for shoppers. 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. At the moment, we realized that overdraft price income in 2023 was down 25% at JPMorgan Chase, Wells Fargo and Financial institution of America. The full continues 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 supply a higher different to overdraft charges.
Whereas we gained’t get to zero any time quickly, we’ll proceed to see diminished overdraft income at giant banks, which is a good factor for shoppers.
Featured
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.
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