PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Banking Going Postal

PaymentsJournal by PaymentsJournal
August 9, 2018
in Analysts Coverage
0
branch banking

branch banking

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Not having access to banking services – i.e., being “unbanked” – can be expensive. For those unbanked who rely on payday loans, the interest rates can be very high, costing individuals and families a large percentage of their annual income. A recent two cents blog discusses a solution to the problem that has been proposed by U.S. Senator Kirsten Gillibrand.

“New York Senator Kirsten Gillibrand has unveiled legislation offering one solution to the problem: requiring U.S. postal offices to offer basic financial services to customers, including checking accounts, interest-bearing savings accounts and short-term loans.”

A history lesson in a recent American Banker article reminds us that the U.S. post office offering savings accounts is not a new idea. A U.S. postal savings account program ran from 1911 to 1967, when it was dropped due to the lack of deposits.

Bringing back this program could provide some relief for those paying high interest on payday loans but would likely meet resistance politically. As pointed out in the two cents blog:

“It won’t be an easy win for Gillibrand – payday lenders are powerful in Washington (just ask Mick Mulvaney, the director of the Consumer Financial Protection Bureau). But it’s one solution to a serious financial problem worth considering.”

Overview by Ryan McEndarfer Editor-in-chief at PaymentsJournal.com

Tags: Banking
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023
    mule. real-time

    Early Detection of Mule Activity Requires Real-Time Solutions

    May 22, 2023
    embedded finance, ecommerce

    How Retailers Can Enter the World of Embedded Finance Confidently 

    May 19, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Brightwell: