Underbanked

A new class of fintech startups is using loan applicants' social networks to determine creditworthiness as the banking industry debates the merits of alternate underwriting methods.

LendUp, which makes subprime consumer loans online and over mobile phones, announced Wednesday that it has raised $50 million in equity funding, plus an additional $100 million in debt financing.

As a recent college graduate, I could have been more engaged with my longer-term financial health had I had today's fintech tools at my disposal.

Several small banks are beginning to offer employer-based loans, a payday loan alternative for under-banked consumers.

Consumer credit is better than ever before, even as Americans households have started levering up. But the big question for banks looking to re-commit to consumer lending is how.

In a speech in New York City, Sanders vowed to remove the ability of the Federal Reserve to pay interest to banks for their excess reserves, turn the credit rating agencies into nonprofits, allow the U.S. Postal Service to offer bank products, and cap ATM fees and interest rates for loans.

Banks have made changes to overdrafts, such as lowering fees offering clearer explanations. They better, as the CFPB will soon offer new rules for overdrafts. Plus, overdraft revenue has declined at many banks. Still unanswered is the question of how to offer short-term credit, if overdrafts disappear.

Dilip Ratha, an economist at the World Bank, shows how the power of a simple remittance sent from one family member to another could be magnified to improve the lives of poor people.

Carver Bancorp in New York, like many community banks, seems to be back on track after surviving the financial crisis. But the company, and CEO Michael Pugh, have an new objective - figuring out how to stay relevant with younger customers.

Developing banking solutions for lower-income consumers means getting to the heart of the financial volatility they face trying to make ends meet.