Without a doubt about Fin Tech Alternatives to Short-Term Small-Dollar Credit

Without a doubt about Fin Tech Alternatives to Short-Term Small-Dollar Credit

Abstract

The main focus with this paper is considered the most promising option to the present short-term, small-dollar credit (“STSDC”) system serving low-income working families — the rapidly growing U.S. financial technology pc pc software — or “FinTech” — industry.

The paper starts by reviewing research that is previous the underlying causes of interest in STSDC — payday advances, automobile title loans, bank overdraft protection and comparable financial loans — by low-income working families. The writer covers proof that increasing degrees of month-to-month earnings volatility are producing a brand new pair of liquidity administration issues for families, and documents the undesirable effect that reliance on STSDC for liquidity help is wearing working families, their communities, their companies in addition to economy in general. Continue reading “Without a doubt about Fin Tech Alternatives to Short-Term Small-Dollar Credit”