Record Producers – Borealnet http://borealnet.org/ Tue, 22 Nov 2022 02:42:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://borealnet.org/wp-content/uploads/2021/06/icon-3-150x150.png Record Producers – Borealnet http://borealnet.org/ 32 32 SAFE Lending Act: Congressional effort to protect consumers | New https://borealnet.org/safe-lending-act-congressional-effort-to-protect-consumers-new/ Mon, 21 Nov 2022 20:00:00 +0000 https://borealnet.org/safe-lending-act-congressional-effort-to-protect-consumers-new/ U.S. Senator from Oregon Jeff Merkley joined Reps. Suzanne Bonamici (D-OR-01) and Pramila Jayapal (D-WA-07) to introduce the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act Act. The SAFE Lending Act will protect consumers from deceptive and predatory practices, especially in online payday loans. Metro Creative CLogin The SAFE Lending Act will protect consumers […]]]>

U.S. Senator from Oregon Jeff Merkley joined Reps. Suzanne Bonamici (D-OR-01) and Pramila Jayapal (D-WA-07) to introduce the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act Act.






The SAFE Lending Act will protect consumers from deceptive and predatory practices, especially in online payday loans.




The SAFE Lending Act will protect consumers from deceptive and predatory practices that rob working families of wealth by cracking down on some of the worst abuses stemming from the payday loan industry, particularly in online payday loans, according to a Merkley press release.

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Studies show gains versus hunger lost with tax credit ending – The 74 https://borealnet.org/studies-show-gains-versus-hunger-lost-with-tax-credit-ending-the-74/ Fri, 18 Nov 2022 17:03:06 +0000 https://borealnet.org/studies-show-gains-versus-hunger-lost-with-tax-credit-ending-the-74/ Support The 74’s end of year campaign. Each donation will be matched dollar for dollar. An article in the Journal of the American Medical Association in October confirmed previous research that food insecurity increased significantly after the monthly Federal Child Tax Credits expired on January 15, 2022. The study looked at the period between January […]]]>

Support The 74’s end of year campaign. Each donation will be matched dollar for dollar.

An article in the Journal of the American Medical Association in October confirmed previous research that food insecurity increased significantly after the monthly Federal Child Tax Credits expired on January 15, 2022.

The study looked at the period between January and July of this year in a series of national surveys and found an almost 25% increase in food inadequacy, affecting black, Hispanic and Indigenous families the most.

The article published Oct. 21 in JAMA, “Association of the Expiration of Child Tax Credit Advance Payments With Food Insufficiency in US Households,” involved a cross-sectional study of repeated surveys of a nationally representative sample of 592,044 US households.

“The results of this study suggest that loss of monthly payments (child tax credit) was associated with an increased prevalence of households with children in the United States reporting sometimes or often not having enough to eat, a condition associated with adverse health effects across the lifespan,” the paper concludes.

Monthly American Rescue Plan Act (ARPA) Child Advance Tax Credit (CTC) payments were administered to more than 35 million households with children in the United States between July and December 2021. Center figures on Budget and Policy Priorities show the appropriations benefited about 2.37 million children in Ohio. Tax credits were associated with a substantial decrease in food insufficiency, according to the study.

Under ARPA, three major changes to the credit have been enacted for the 2021 tax year: an expansion of eligibility to include families with very low or no income; an increase in credit amounts from a maximum credit of $2,000 per child per year previously to $3,000 per child 6-17 per year and $3,600 per child under 6 per year; and provision for half of the loan in the form of a monthly advance between July and December 2021.

As a result of these changes, about 92% of families with children were eligible to receive $250 to $300 per month per child between July and December 2021, according to the study. National data shows that parents report spending monthly CTC payments on food, utilities, rent, clothing and education costs, according to the article.

These monthly payments expired in January 2022 after the US Congress failed to extend the policy.

In a series of surveys conducted by researchers just before the CTC expired, the unadjusted household food insufficiency was 12.7% among households with children.

In late January and early February 2022, following the first missed monthly CTC payment, 13.6% of households with children reported food insufficiency, rising to 16% in late June and early July 2022.

“Given the well-documented associations between the inability to afford food and poor health outcomes across the lifespan, Congress should consider prompt action to reinstate this policy,” the JAMA article recommended.

These latest findings mirror previous research done by the nonpartisan National Research Group at the Brookings Institution and published in April 2022 in a report titled “The Impacts of the 2021 Expanded Child Tax Credit on Family Employment, Nutrition and financial well-being”.

Brookings researchers said the temporary tax credit expansion “has unprecedented reach” and lifted 3.7 million children out of poverty by December 2021.

“The expanded CTC significantly improved food security and healthy eating among eligible people,” Brookings found.

Moreover, according to this study, about 70% of CTC recipients who were negatively affected by inflation said that the payments helped them better manage rising prices.

Besides increasing food security, other areas Brookings said tax credits help families include statistically significant declines in credit card debt compared to those who were not eligible; reducing reliance on expensive financial services such as payday loans and pawnbrokers, as well as reducing blood plasma sales rates; increased capacity to manage emergency expenses and strengthened family emergency funds; and a significant drop in evictions.

Brookings also found that credit enabled families of color to make significant investments in their children’s long-term educational outcomes. Black, Hispanic and non-white households were more likely to use the credit for child care and education expenses, Brookings found.

South Dakota Searchlight is part of States Newsroom, a grant-supported network of news outlets and a coalition of donors as a 501c(3) public charity. South Dakota Searchlight maintains editorial independence. Contact editor Seth Tupper with any questions: info@southdakotasearchlight.com. Follow South Dakota Searchlight on Facebook and Twitter.


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Payday Loans Add to Your Worries and Conflicts https://borealnet.org/payday-loans-add-to-your-worries-and-conflicts/ Tue, 15 Nov 2022 17:33:36 +0000 https://borealnet.org/payday-loans-add-to-your-worries-and-conflicts/ Become a personal finance expert Subscribe to our three times weekly personal finance newsletter that helps you manage your money better. Digging into financial maneuvers that seem suspicious. Payday loans are predatory products that people in financial difficulty often resort to in a pinch. Also called cash advances, these short-term loans are primarily used to […]]]>
Become a personal finance expert

Subscribe to our three times weekly personal finance newsletter that helps you manage your money better.

Digging into financial maneuvers that seem suspicious.

Payday loans are predatory products that people in financial difficulty often resort to in a pinch. Also called cash advances, these short-term loans are primarily used to cover basic living needs like utilities, car payments, credit card payments, housing, and food.

How are these products predatory? First, average interest rates vary from state to state, but rates are usually so high that borrowers fall into a debt trap. Texas, for example, has the highest average APR of 664% (well above the 36% APR cap defenders have claimed in a number of other states). This means that a borrower who needs $300 to cover their rent would have to pay back $1,992, which is often paid off by taking on more debt.

Second, payday loan ads disproportionately target Black and Latinx populations, and cash advance locations tend to be clustered in low-income areas. Enough said.

So while we strongly advise against payday loans at all costs, here’s what to do if you or someone you know is having trouble escaping this cycle:

  • Get help with debt management through the National Credit Counseling Foundation. (You may have to pay a small fee for the service, but it’ll be money well spent.)
  • Focus on a debt avalanche approach paying off the debt at the highest interest rate first.
  • Connect with your local support group for cash assistance or help paying for groceries.
  • Negotiate your expenses As talk to your landlord if you think you are behind on your rent. Call your credit card companies to see if you can change your payment due date.

It is important to remember that payday loans are the result of societal failures, not individual ones. And both the private and public sectors are working to stamp out the predatory practice: Organizations like the Center for Responsible Lending are working to end predatory lending, and more than 16 states have banned payday lending entirely.-Myriam

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This year, voters circled disconnected politicians https://borealnet.org/this-year-voters-circled-disconnected-politicians/ Fri, 11 Nov 2022 22:19:40 +0000 https://borealnet.org/this-year-voters-circled-disconnected-politicians/ This fall, in the run-up to the midterm elections, a group of Catholic nuns, Protestant ministers and other religious leaders caravanned through South Dakota on what they called a “Love Your Neighbor Tour.” . They stopped at grocery stores, restaurants, senior centers, libraries and other community gathering places to start conversations about health insurance. They […]]]>

This fall, in the run-up to the midterm elections, a group of Catholic nuns, Protestant ministers and other religious leaders caravanned through South Dakota on what they called a “Love Your Neighbor Tour.” .

They stopped at grocery stores, restaurants, senior centers, libraries and other community gathering places to start conversations about health insurance. They heard story after story of family members, friends and neighbors struggling to afford quality health care.

The purpose of this tour: to build support for a ballot initiative to help more South Dakotans get the care they need.

Through such initiatives, citizens can circumvent elected officials who have become disconnected from their constituents.

In this year’s elections, voters in more than 30 states committed to this form of direct democracy. These voters enshrined abortion rights in states like Michigan, funded universal preschool and child care in New Mexico, and clamped down on medical debt in Arizona.

In South Dakota, the “Love Your Neighbor” campaign won big. By a margin of 56 to 44, voters approved a proposal to force their state government to expand eligibility for Medicaid, a move that will help about 42,500 working-class people seek treatment.

These people earn too much to qualify for the state’s existing Medicaid program, but too little to access private insurance through the Affordable Care Act. Since 2010, the federal government has covered 90% of the costs when states expand Medicaid, but political leaders in South Dakota and 11 other states have refused to do so.

This isn’t the first time South Dakotans have used effective strategies of people-to-people organizing and ballot initiatives for the good of their neighbors.

In 2016, a bipartisan coalition with strong support from the faith community won a stunning victory against financial predators, winning 76% support for an election measure to impose a 36% cap on loan interest rates. on salary. Previously, those rates averaged around 600% in South Dakota, trapping many low-income families in a downward spiral of debt.

In this midterm election season, Nebraska offers another inspiring example of citizen action to circumvent out-of-touch politicians.

For 13 years now, Republicans in Congress have blocked efforts to raise the federal minimum wage, leaving it stuck at $7.25 since 2009. Nebraska’s entire congressional delegation — all Republicans — have always opposed the hikes minimum wage. Rep. Adrian Smith, for example, recently attacked President Biden’s $15 federal minimum proposal as “economically harmful.”

Nebraskans see the issue differently.

Voters there approved an increase in the state minimum wage to the same level Biden has proposed — $15 an hour — by 2026. The measure, which was accepted with 58% support, will mean bigger paychecks for about 150,000 Nebraskas.

Election measures like these can send a healthy wake-up call to political leaders who aren’t listening to their constituents. But some special interests, especially those with deep pockets and driven by narrow profit motives, don’t necessarily want ordinary Americans to be heard.

State legislatures across the country have seen a slew of bills aimed at restricting or eliminating the ballot measurement process. According to the Ballot Initiative Strategy Center, the number of such bills increased by 500% between 2017 and 2021. Dozens more were introduced in 2022, including efforts to raise the threshold for passing a measure. voting beyond a simple majority vote.

The purpose of these restrictions? To undermine the will of the people.

At a time when more and more Americans are worried about the future of our democracy, we should applaud the advocates in South Dakota, Nebraska and elsewhere who engage their fellow citizens in the political decisions that affect their lives. .

We need more democracy. Not less.

Sarah Anderson directs the Global Economy Project and co-edits Inequality.org at the Institute for Policy Studies. This editorial was distributed by OtherWords.org.

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Could a personal loan help you pay off more debt by 2023? https://borealnet.org/could-a-personal-loan-help-you-pay-off-more-debt-by-2023/ Wed, 09 Nov 2022 18:00:42 +0000 https://borealnet.org/could-a-personal-loan-help-you-pay-off-more-debt-by-2023/ Image source: Getty Images If you’re hoping to be debt free, you should read this. Key points Paying off debt can be a challenge, and this is especially true if your debt has a high interest rate. A personal loan could help lower the cost of your debt and make repayment easier. If you’re hoping […]]]>

Image source: Getty Images

If you’re hoping to be debt free, you should read this.


Key points

  • Paying off debt can be a challenge, and this is especially true if your debt has a high interest rate.
  • A personal loan could help lower the cost of your debt and make repayment easier.

If you’re hoping to be debt-free by 2023 — or at least reduce your debt significantly — you don’t have long to work on that goal. And, there’s a potential move you could make that could make paying off your balance much easier (depending on your situation). You could take out a personal loan.

Borrowing more money can seem counter-intuitive when trying to get out of debt. But, in some circumstances, it could be exactly the right decision. Here’s why.

How a Personal Loan Could Help You Pay Off Your Debt Faster

Taking out a personal loan could actually help you pay off more of your debt by 2023 if your personal loan is at a lower rate than the debt you are currently trying to pay off.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

You see, if you have high-interest debt (like credit cards), chances are a big chunk of every payment you make will be eaten up by interest. You may be paying very little capital because your financing costs are too high. So all those payments you work hard to send to your creditors may do very little to help you move towards your goal of becoming debt free.

If you can qualify for a low-interest personal loan, you can turn that debt from high-interest to low-interest. For example, instead of paying 17% annual interest on a credit card (or more), you could pay 8% or 10% or whatever rate you can qualify for on your personal loan. You then use the proceeds from your personal loan to pay off that expensive credit card debt.

If, for example, you owe $4,000 on one card and $5,000 on another, a personal loan of $9,000 could free you from both loans. You would only have one debt to pay and at a lower interest rate.

Once you lower your rate, more of your monthly payment should go towards reducing your balance so you can get out of debt faster. This can help you make much more progress on your debt repayment methods over the rest of this year and next year.

Does this decision suit you?

Refinancing your high-interest debt may be the right decision if you can qualify for a new loan at a lower rate and you’re not extending your repayment schedule too much by doing so. You can use your new low-interest personal loan not only to lower credit card rates, but also for any type of expensive debt you have, such as payday loans or medical debt.

You can shop around and find out what rate you can qualify for without affecting your credit score to find out if this approach will work. You’ll also want to make sure you can comfortably make the payments on your new personal loan and that you’re sticking to a budget so you don’t charge your credit cards more after you pay them off.

If you can get a new loan at a low rate and can rely on yourself to be responsible for repayment, there’s no reason not to move forward with this strategy as soon as possible so you can repay. the maximum amount of your debt by 2023.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Grace Victory’s 7 tips to help manage family finances https://borealnet.org/grace-victorys-7-tips-to-help-manage-family-finances/ Sun, 06 Nov 2022 06:51:17 +0000 https://borealnet.org/grace-victorys-7-tips-to-help-manage-family-finances/ As the cost of living weighs heavily on our minds, columnist Grace Victory explores the pressures on parents and her personal tips for budgeting when you have growing offspring. I think it’s fair to say that most of us don’t feel financially secure right now. Whether you’re literally going through every month, a nursing student […]]]>

As the cost of living weighs heavily on our minds, columnist Grace Victory explores the pressures on parents and her personal tips for budgeting when you have growing offspring.

I think it’s fair to say that most of us don’t feel financially secure right now. Whether you’re literally going through every month, a nursing student trying to make ends meet, or a mother trying to get back to work but childcare costs get in the way, the rising cost of living affects us all.

I grew up poor. I grew up knowing about payday loans and child allowance, and I understood from an early age that if I wanted anything out of life, I had to go out into the world and grab it, because nothing was wrong with me. was given.

We lived in an apartment in a housing project, then a housing project, and at 18, after finishing my studies, I chose to work rather than continue my studies. I knew I needed money and had to contribute in some way to my family home, so I said no to college or professional musical theater school (which was really a dream of mine). And while I don’t regret my decision at all, I often wonder if I would have made that choice if my family and I had had financial freedom.

I don’t remember ever being without it, but I do remember my mom budgeting, saving from January to pay for the next Christmas, and never buying anything for herself . I believe my mother sacrificed a lot to make sure my sister and I were clothed and fed, and I will be forever grateful to her. I know all types of family dynamics, but single moms don’t have it easy in any capacity, so I respect those who go it alone.

I started making money from social media in 2015 and since then with each passing year I am earning more and more. It’s no secret that influencers, content creators, and YouTubers earn a substantial sum through ads, paid partnerships, or affiliate links – I’m no different. But I often struggle to know where I am in my identity, because I grew up with very little, and now I have so much.

And it’s not just about having the money to buy things, it’s about the opportunities, convenience, and mental relief that come when your bank account is plentiful. It’s the lack of worry or anxiety that I’m grateful for, because early in my career I struggled to pay my rent, and the level of stress I felt was enough to make me vomit. I saw people online flying business class to Bali while I was sinking deeper into debt.

I am very proud to say that I now have £0 in debt, which is truly amazing, and I have made a life for myself and my children that is different from the life I had as a child. But I’m also becoming more and more aware of our ever-changing world and the fact that money just doesn’t seem to be going as far as it used to – or as far as it should.

I am fully aware that I am speaking from a privileged place here. I am financially stable, earn money regularly and even though I set a budget each month, I know that some months I can be indulgent and provide myself or my family with things we would like. But even I’m a little worried that the energy bills keep going up, the grocer’s apparently going up £20 every week, and the price of petrol too – I could go on! Every aspect of everyday life costs so much, and if I feel this ever-increasing burden, I can’t imagine the stress and anxiety that people less financially privileged experience, including people close to me, like my mother. .

I don’t live a particularly glamorous life, but rarely worrying about money is definitely one of my biggest blessings, but that’s slowly changing, and I have to adapt and change some aspects of how we live in family, for factor in the current state of the UK.

  • I’m tightening my budget even more and making sure I know exactly where each book is going.

  • I do our weekly grocery shopping where there are the best deals or discounts (this week it was Ocado because they had £15 off, plus their usual savings).

  • I cancel subscriptions and apps I no longer use, and unsubscribe from emails so I don’t get tempted to overspend.

  • I buy things like diapers, wipes and toilet paper in bulk because it’s cheaper that way.

  • I usually don’t spend money on clothes (unless it’s maternity leggings because my bump is bigger LOL).

  • I opt for free, discounted or cheap family outings.

  • I check my bank account every other day, just to make sure I know where I am with my spending habits.

These are just a few of the things I do to help relieve the pressure, but at the end of the day, if you don’t have more money coming in than you are taking out, you’re going to struggle. I’m angry and frustrated that so many people are put in horrible situations (especially during the winter), and all because of greedy white men in suits and an absolutely disastrous government – and it’s me who am nice.

I also donate plus size clothing and baby items to charity, toys to local playgroups, and donate food to food banks.


Love Grace x



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OMNIS Wins Halloween Business Idea Pitch Contest https://borealnet.org/omnis-wins-halloween-business-idea-pitch-contest/ Thu, 03 Nov 2022 19:26:03 +0000 https://borealnet.org/omnis-wins-halloween-business-idea-pitch-contest/ Body of the review The fourth annual Halloween pitch competition, hosted by the New Venture Accelerator and the Harbert College of Business, saw 19 teams compete for $5,000 in seed funding, in front of a panel of professional industry judges at the interior of the Broadway Event Space and Theatre. When the scores were tallied, […]]]>

Body of the review

The fourth annual Halloween pitch competition, hosted by the New Venture Accelerator and the Harbert College of Business, saw 19 teams compete for $5,000 in seed funding, in front of a panel of professional industry judges at the interior of the Broadway Event Space and Theatre.

When the scores were tallied, OMNIS came out on top and received $2,000 from the prize pool. OMNIS is a participatory social platform where individuals borrow money through short-term community and peer-to-peer microloans, and where others can borrow money to meet their immediate needs.

Zakariya Veasy, a senior software engineering specialist, founded OMNIS to solve the problem of people with limited credit histories being marginalized by traditional banks and exploited by predatory payday loan companies. “Far too often, the underbanked and unbanked are forced to turn to high-interest payday loans to stay afloat at 400% interest on average,” Veasy said. “The value proposition for OMNIS users is that it builds credit for underserved and neglected demographics. With OMNIS, users build community financial literacy and close generational wealth and credit gaps at across the country.

Other teams that have received funding include:

  • Rodopto, founded by Scott Rowe, uses drones to plant crops that can be converted into renewable diesel fuel and received $1,000.

  • Stretch & Go, founded by Josh Green and Tristin Pettus, is a device providing the critical method for stretching the hamstrings awarded $500

  • BAE, founded by William Murphy and Avery Arasin, is an app that allows students to connect with other students within their own college ecosystem awarded $500

  • AbGlo, founded by Marianne Madsen, Holli Michaels and Courtney Montague, is a fitness device that provides visual feedback to correct lower back posture received the $1,000 Special Category Award provided by the Thomas Walter Center for Technology Management.

The Halloween Business Idea Pitch Contest discovers and rewards early-stage business products, services, or concepts emerging from Auburn University students. Last year’s winner, Room2Room Movers, founded by recent Harbert graduate Brooks Fuller, is currently enjoying significant market success.

Special recognition and appreciation goes to the judges who supported this year’s competition:

  • Sherina Hill, business coach for entrepreneurs

  • Tim Denison, President, GDI LLC

  • Ebony Ruffin, Ruffin Consulting Services

  • Larkin Jones, Alabama Small Business Development Center

  • Ralph Runge, RSquare Consulting, Inc.

  • Jason Wilson, Back Forty Beer

  • Ken Evola, PwC Managing Director, PwC

Comments that competing teams share each year are that, while the prize money is important, ideas and offers of support from alumni, which will help them in their longer-term business planning efforts, are a long way off. the most valuable elements of the experience. It proves once again that the people of Auburn always come back and always give back.

Congratulations to all the teams that participated in the Halloween 2022 pitch contest: Atlas Esports – AbGlo – BAE – Balance Buddy – Bridal Jeans – Drop Out Flags – Flavivirus Resource Center – Gym Rat U – HyperTransport – Kaopetronite – LoLo Baking – Menu Match – OMNIS – Plainsman Financial Consulting – Rodopto – Seat Key – Stretch & Go – Tennis Taps – Your future is today.

NEXT UP: Tiger Cage where startups will compete for $50,000 in seed capital!

Applications to participate in Tiger Cage must be submitted by November 16, with the competition starting on January 27.

To register for Tiger Cage, click here or contact Lou Bifano, Director of the New Venture Accelerator at loubifano@auburn.edu for more information.

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Newest Survey of Unbanked Americans Shows Progress — and Perils https://borealnet.org/newest-survey-of-unbanked-americans-shows-progress-and-perils/ Tue, 01 Nov 2022 10:03:12 +0000 https://borealnet.org/newest-survey-of-unbanked-americans-shows-progress-and-perils/ Fewer and fewer households are turning to predatory financial services and more are accessing banking services. But that progress could already be under threat. On the beaches of New York last summer, prices for homemade fruit juice and the hard liquor cocktail known as the “Nutcracker” peaked at $15 a pop – and vendors were […]]]>

Fewer and fewer households are turning to predatory financial services and more are accessing banking services. But that progress could already be under threat.

On the beaches of New York last summer, prices for homemade fruit juice and the hard liquor cocktail known as the “Nutcracker” peaked at $15 a pop – and vendors were loudly announcing that they were now accepting cash, Venmo, PayPal, Cash App, or Zelle for payment.

It was a sign of the times. In 2021, 46.4% of all households used non-bank online payment services like Venmo, PayPal or Cash App, according to the 2021 National Survey of Unbanked and Underbanked Households. Conducted every two years by the Federal Deposit Insurance Corporation, the most recent edition was released last week.

Households without bank accounts were able to access non-bank online payment services to exchange and even store money directly through each platform or by connecting the services to a prepaid debit card account. Use of prepaid cards was much higher among unbanked households (32.8%) than among banked households (5.7%).

The percentage of unbanked households in the biannual survey, 4.5%, is the lowest since the first edition of the survey in 2009. This percentage represents approximately 5.9 million unbanked households, compared to 7.1 million of unbanked households in the 2019 edition of the FDIC survey. . As in previous editions of the survey, unbanked rates were higher than average among low-income households, less-educated households, black households, Hispanic households, working-age households with disabilities, and single mother households.

This year’s edition of the survey also stands out for restoring its estimate of “underbanked” households – those where at least one person in the household has at least one bank account, but in the past 12 months still used at least one unbanked. banking alternative financial services such as prepaid debit cards, check cashing, money orders, payday loans, auto title loans or pawnshops. Households that have used online payment platforms like PayPal or Venmo and connected them to a bank account are considered fully banked if they have not also used one of these other non-bank alternatives.

Under the Trump administration, the 2019 edition of the FDIC survey excluded any estimate of underbanked households. An estimated 14.1% of US households (about 18.7 million) were “underbanked” in 2021.

The 2021 National Survey of Unbanked and Underbanked Households also included questions to better understand the impact of the COVID-19 pandemic on access to banking services. More than one in three (34.9%) previously unbanked households who recently opened a bank account said receiving a government benefit (such as unemployment benefits or a pandemic stimulus payment) had contributed to opening a bank account since March 2020.

The strength of the labor market in recent years also appears to have had a positive impact on access to banking services – among previously unbanked households who recently started a new job, one in three said the new job had helped when opening a new bank account. The FDIC survey says these findings are consistent with findings from 2013 that showed the most common reason unbanked households opened an account was to receive a direct deposit from a new employer.

The 2021 survey also revealed many variations between metropolitan areas. Burlington, Vermont topped the banked metros, with 95% fully banked banks, meaning 95% of households had a bank account and were not using any of the specified non-bank financial alternatives. In second place, Seattle was 91.1% fully banked, followed by the Twin Cities at 90.8% fully banked.

At the other end of the spectrum, New Orleans was only 73.6% fully banked; Jackson, Mississippi, 72.9% fully banked; and finally Wichita, Kansas, with only 66.6% fully banked.

The study reports significant long-term abandonment of non-banking financial services. Use of check cashing has fallen from 7.9% of households in 2011 to 3.2% in 2021, while use of money orders has fallen from 18.8% to 9.7%. The declines affect different racial and income groups.

In 2013, 7.5% of households used at least one of the non-bank credit products tracked by the survey at that time: rent-to-own services, payday loans, pledge loans, tax-free loans and automobile title loans. But in 2021, the share of households using these same products fell to 4.4%. This decline was particularly pronounced among unbanked households – 18.% used at least one of these non-bank credit products in 2013, but only 9.5% did so in 2021.

But the study also notes that it is not yet clear whether these shifts away from non-bank financial services and in particular non-bank credit are due to greater access to other more conventional banking and credit services, or s they have more or less to do with other factors that are still poorly understood. Part of this could be the more widespread adoption of new technologies for financial services – perhaps another side effect of the COVID-19 pandemic.

But more effective consumer protection, for example, could also promote consumer adoption of less predatory financial services.

“The decline in the use of these non-banking services, particularly during a period of falling unbanked rates, could imply that an increasing number of households meet the needs for financial services within the banking system and benefit from the protections of the consumers and the opportunities the system provides,” says the 2021 FDIC survey.

Some of this consumer protection may soon be undone, at least temporarily.

The 2021 National Survey of Unbanked and Underbanked Households comes at a time when a payday loan industry group is is currently mounting a legal challenge against the Consumer Financial Protection Bureau’s funding structure. The decision could jeopardize the agency’s ability to do all the work that could ensure fewer vulnerable households fall prey to more predatory financial services.

Oscar is Next City’s Senior Economic Justice Correspondent. He previously served as Next City Editor-in-Chief from 2018-2019 and was a Next City Equitable Cities Fellow from 2015-2016. Since 2011, Oscar has covered community development finance, community banking, impact investing, economic development, housing and more for outlets such as Shelterforce, B Magazine, Impact Alpha and Fast Company.

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Global neobanking industry to reach $2 billion market size by 2030 https://borealnet.org/global-neobanking-industry-to-reach-2-billion-market-size-by-2030/ Sat, 29 Oct 2022 04:02:00 +0000 https://borealnet.org/global-neobanking-industry-to-reach-2-billion-market-size-by-2030/ Neobanks will represent a market size of over $2 trillion globally by 2030 and grow at a compound annual rate of 53.4% ​​as digitally savvy users increasingly demand services easy-to-access financial resources, said the Boston Consulting Group. Regulatory changes combined with the massive adoption of the internet and smart technologies will drive the growth of […]]]>

Neobanks will represent a market size of over $2 trillion globally by 2030 and grow at a compound annual rate of 53.4% ​​as digitally savvy users increasingly demand services easy-to-access financial resources, said the Boston Consulting Group.

Regulatory changes combined with the massive adoption of the internet and smart technologies will drive the growth of the sector, according to a report by the management consulting firm.

“The FinTech sector in the GCC is expected to be valued at $3.45 billion by 2026 as a direct result of a boom in digital payments and digital remittances growth rates,” said Bhavya Kumar, Managing Director and associate of BCG.

“As regulators ease barriers to entry, new businesses and established players are looking to capitalize on the demands of a young, highly connected population who want convenient, on-demand access to their finances and are acutely aware of what to expect in terms of sophisticated user experiences.

Often referred to as challenger banks, neobanks are financial service providers that operate solely online and have no physical presence.

They offer digital and mobile-first financial solutions for specific services long associated with traditional institutions such as retail banks, payment providers and international money transfer services, BCG said.

Neobanks are increasingly popular with Gen Z because they serve their needs better than traditional banks.

FinTech start-ups first emerged after the global financial crisis of 2007-2009. The ensuing upheaval in banking regulations and the rise of new technologies have enabled neobanks to disrupt the market with user-friendly services such as faster account opening times, faster peer-to-peer transfers, building up credit and payday loans.

Some traditional financial institutions have responded to the challenge of neobanks, including in the Middle East.

Banks such as Abu Dhabi Commercial Bank, Emirates NBD and Mashreq quickly launched digital operations with Hayyak, Liv and Mashreq Neo, respectively.

There are at least 333 neobanks worldwide, including start-ups and digital-only operations by incumbents, a tracker by The financial brand publication showed.

The number of neobanks has increased by more than 200% since 2015, according to BCG’s FinTech Control Tower report.

The growth of these institutions is driven by the need for on-demand, easy-to-access financial solutions sought by a young and increasingly digitally savvy population, BCG said.

“Traits that have often defined the success of neobanks include digital and mobile-centric services, exceptional user experiences, a lean and agile technology-driven culture, and building brands that users have an emotional connection with,” indicates the report.

More than half of the GCC population is under 30 years old. The region has one of the highest connectivity rates in the world, with more than 90% of its population connected to the internet, far exceeding the global average of 51.4%, according to the research.

It is expected that around two-thirds of the GCC population will have 5G connections by 2026.

This combination makes the region ripe for FinTechs and neobanks to accelerate their growth, according to the report.

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Watch: ADIB unveils first facial recognition service for account openings in UAE

This year, Saudi Arabia licensed three digital banks and 19 fintech companies to provide microfinance, digital insurance and payment services to consumers, BCG said.

There have been regulatory advancements across the GCC, such as the FinTech Hive accelerator at the Dubai International Financial Center, as well as others in Abu Dhabi and Manama in Bahrain, the consultancy said.

“While traditional banks will maintain a strong position in the short term, particularly in terms of corporate banking and retail mortgages, neobanks will gain market share in specific product areas such as payments, loans , buy-now, pay-later, cards and digital wallets, and remittances, targeting specific customer groups such as young tech-savvy people, expatriate populations and women,” the report states. .

Updated: October 29, 2022, 04:00

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How do you prepare for a recession if you are -2- https://borealnet.org/how-do-you-prepare-for-a-recession-if-you-are-2/ Wed, 26 Oct 2022 01:57:00 +0000 https://borealnet.org/how-do-you-prepare-for-a-recession-if-you-are-2/ People should also be aware of the risks of “old-school predatory lending,” Williamson added, including payday loans, auto-title lenders and rent-to-own businesses. Payday lenders in particular tend to settle in communities of color, Williamson said, and are marketed as easy ways to get money. Often these loans come with high rates. “They have an established […]]]>

People should also be aware of the risks of “old-school predatory lending,” Williamson added, including payday loans, auto-title lenders and rent-to-own businesses. Payday lenders in particular tend to settle in communities of color, Williamson said, and are marketed as easy ways to get money. Often these loans come with high rates.

“They have an established presence in the community, and in many ways low-income consumers need to look beyond that to determine if there are other, more sustainable ways to get a small loan,” said Williamson.

When credit becomes harder to come by during a recession as lenders limit borrowing, people will be tempted to turn to abusive products and worse terms because it seems like whatever is available, Friedline said.

Credit card issuers previously reduced credit limits during the COVID-19 pandemic and the Great Recession, a measure that may help them avoid losses from consumers unable to repay debts, according to a June report from Consumer Financial Protection Bureau. However, these discounts can dramatically increase usage, or consumers maxing out their cards, which in turn can lower credit scores and make it even more difficult to borrow.

“People on low incomes are short on money, so you may know you’re being scammed, but what other options do you have?” Friedlin said.

Still, she said to watch out for promises of “a new product you’ve never heard of before that’s positioned as something that’s really going to help you,” like payday advances offered by an employer, which may come with a fee. and have worried some consumer advocates.

Given these vulnerabilities, Friedline added, policymakers could put in place more regulations and consumer protections, like interest rate caps on small loans. “The exploitation that we think is likely to happen doesn’t have to happen,” she said.

Of course, not all forms of support are scams. There are government programs that will help cover or reduce utility bills, for example. Consumers can sign up for Federal Trade Commission email alerts to stay up to date on money-saving tips and scammers taking money.

People can contact the Consumer Financial Protection Bureau with complaints about financial services, Friedline noted. The agency also offers several guides for those looking to buy a home, maintain their financial health in emergencies and disasters, or plan for retirement.

Collins, of the University of Wisconsin-Madison, noted that it helps to keep an open dialogue with family members about the financial situation. It’s normal to feel stressed about your budget, but there’s no point in ignoring the problems.

“The more people can talk about this stuff, whether it’s virtually or with friends and families or others — just so it’s less taboo — that’s important,” Collins said.

-Emma Ockerman

 

(END) Dow Jones Newswire

10-25-22 2157ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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