Bank overdraft fees have been on the rise for many years as income volatility rises and more Americans live paycheck-to-paycheck. Federal bank regulators have done little to help American families, failing to speed up America’s payment system to address one of the many root causes of overdrafts (slow deposit times) while giving a thumbs-up to banks who choose to increase profits at the expense of those living on the financial edge. A few banks and financial technology firms are choosing a different path, creating new products designed to help consumers avoid overdraft, attacking the problem of why it is so expensive to be poor.
On July 15, Brookings engaged in an in-depth conversation with these banks, financial technology firms, and consumer advocates to explore alternatives to overdraft. Industry and consumer voices analyzed whether new technology and products can meet people’s needs for financial flexibility in a more fair and efficient manner.
Viewers submitted questions for speakers by emailing email@example.com or via Twitter using #Overdraft.