[PDF] Analyzing Bank Overdraft Fees With Big Data eBook

Author : Xiao Liu
Publisher :
Page : 54 pages
File Size : 50,23 MB
Release : 2020
Category :
ISBN :

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In 2012, consumers paid $32 billion in overdraft fees, representing the single largest source of revenue for banks from demand deposit accounts during this period. Owing to consumer attrition caused by overdraft fees and potential government regulations to reform these fees, financial institutions have become motivated to investigate their overdraft fee structures. Banks need to balance the revenue generated from overdraft fees with consumer dissatisfaction and potential churn caused by these fees. However, no empirical research has been conducted to explain consumer responses to overdraft fees or to evaluate alternative pricing strategies associated with these fees. In this research, we propose a dynamic structural model with consumer monitoring costs and dissatisfaction associated with overdraft fees. We apply the model to an enterprise-level data set of more than 500,000 accounts with a history of 450 days, providing a total of 200 million transactions. We find that consumers heavily discount the future and potentially overdraw because of impulsive spending. However, we also find that high monitoring costs hinder consumers' effort to track their balance accurately; consequently, consumers may overdraw because of rational inattention. The large data set is necessary because of the infrequent nature of overdrafts; however, it also engenders computational challenges, which we address by using parallel computing techniques. Our policy simulations show that alternative pricing strategies may increase bank revenue and improve consumer welfare. Fixed bill schedules and overdraft waiver programs may also enhance social welfare. This paper explains consumer responses to overdraft fees and evaluates alternative pricing strategies associated with these fees.

Author : Oz Shy
Publisher :
Page : 0 pages
File Size : 42,29 MB
Release : 2022
Category :
ISBN :

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Banks impose a variety of account fees, and credit card issuers impose a variety of fees related to card usage. Using detailed data from a 2021 representative diary survey of US consumers, we investigate whether lower-income consumers and Black consumers are more likely to pay bank account or credit card fees, and how payment behavior varies depending on paying such fees. We find that the probability of paying several types of bank account and credit card fees is correlated with consumers' demographic attributes and payment behavior. The percentage of Black consumers who pay overdraft or low-balance fees on their bank accounts or pay late fees or cash-advance fees on their credit cards is higher than the percentage of White consumers who pay those fees. We find that lower-income consumers were significantly more likely to pay overdraft fees, and Black consumers were significantly more likely to pay any bank account fee when we hold income and account balances constant in the regressions. However, when controlling for income, we find that the race effect was smaller than in the summary statistics.

Author : Eliezer Geisler
Publisher : Springer Nature
Page : 228 pages
File Size : 11,96 MB
Release : 2022-09-02
Category : Business & Economics
ISBN : 3030437183

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This book explores the role that data analysis plays in the managerial decision-making process. The author presents the notion of "beyond analytics," which proposes that through data collection managers evaluate patterns in business processes through models of cognitive representation, framing and modeling, and knowledge creation in businesses. The book focuses on how the massive amounts of business data can be reduced to manageable volumes, thus allowing managers to make informed decisions. Further, it relates beyond analytics to HR aspects of the business and succession planning. This book will inform organizational behavioral theorists how the management of data impacts the decision-making process in organizations.

Author : Board of Governors of the Federal Reserve System
Publisher :
Page : 0 pages
File Size : 40,10 MB
Release : 2002
Category : Banks and Banking
ISBN : 9780894991967

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Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Author : Philip O'Regan
Publisher : Routledge
Page : 639 pages
File Size : 36,94 MB
Release : 2015-10-16
Category : Business & Economics
ISBN : 1317906675

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The accounting landscape shifted following the era of global financial crisis and accounting information continues to play a vital role. Philip O’Regan’s authoritative textbook provides readers with the tools and techniques to fruitfully analyse accounting and financial data. Updated to reflect changes in corporate governance, regulatory frameworks and new forms of IFRS, the text continues to shed light on the growing emphasis placed on the role of accounting information in formulating financial strategy. Features which add value to this third edition of Financial Information Analysis include case studies in every chapter with numerous supporting articles from the major financial presses, questions for review, and a comprehensive companion website. This essential textbook is core reading for advanced undergraduate and postgraduate students of finance and accounting.

Author : Lisa Servon
Publisher : Houghton Mifflin Harcourt
Page : 264 pages
File Size : 18,44 MB
Release : 2017-01-10
Category : Social Science
ISBN : 0544611187

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Why Americans are fleeing our broken banking system: “Startling and absorbing…Required reading for fans of muckraking authors like Barbara Ehrenreich.”—Publishers Weekly (starred review) What do an undocumented immigrant in the South Bronx, a high-net-worth entrepreneur, and a twentysomething graduate student have in common? All three are victims of our dysfunctional mainstream bank and credit system. Nearly half of all Americans live from paycheck to paycheck, and income volatility has doubled over the past thirty years. Banks, with their high monthly fees and overdraft charges, are gouging their lower- and middle-income customers while serving only the wealthiest Americans. Lisa Servon delivers a stunning indictment of America’s banks, together with eye-opening dispatches from inside a range of banking alternatives that have sprung up to fill the void. She works as a teller at RiteCheck, a check-cashing business in the South Bronx, and as a payday lender in Oakland. She looks closely at the workings of a tanda, an informal lending club. And she delivers engaging, hopeful portraits of the entrepreneurs reacting to the unbanking of America by designing systems to creatively serve those outside the one percent. “Valuable evidence on the fragility of the personal economies of most Americans these days.”—Kirkus Reviews “An intelligent plea for financial justice…[An] excellent book.”—The Christian Science Monitor

Author : Terri Friedline
Publisher : Oxford University Press
Page : 272 pages
File Size : 13,81 MB
Release : 2020-11-06
Category : Social Science
ISBN : 0190944153

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Can grassroots social movements impact the financial system? Technological advancements are poised to completely transform the financial system, and soon it will be unrecognizable. Banks are increasingly using financial technologies ("fintech") to deliver products and services and maximize their profits. Technology enthusiasts and consumer advocates laude the field for its potential to expand access to banking and finance. However, if history is any indication, fintech stands to reinforce digital forms of redlining and enable banks' continued racialized exploitation of Black and Brown communities. Banking on a Revolution takes the perspective that the financial system needs a revolution-not the impending revolution driven by technology. Studying the various ways the financial system bolsters whites by exploiting and marginalizing Black and Brown communities, Terri Friedline challenges the optimistic belief that fintech can expand access to banking and finance. Friedline applies the lens of financialized racial neoliberal capitalism to demonstrate the financial system's inherent racism, and explores examples from student loan debt, corporate landlords, community benefits agreements, and banking and payday lending. Banking on a Revolution is deeply rooted in theory and research, and it presents new interpretations of the climate crisis, student loan debt, and community benefits agreements and their relationships to the financial system. The book makes a compelling case for a revolutionized financial system that centers the needs, experiences, and perspectives of those it has historically excluded, marginalized, and exploited.

Author : Introbooks
Publisher :
Page : 50 pages
File Size : 38,24 MB
Release : 2020-04-07
Category :
ISBN :

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In these highly competitive times and with so many technological advancements, it is impossible for any industry to remain isolated and untouched by innovations. In this era of digital economy, the banking sector cannot exist and operate without the various digital tools offered by the ever new innovations happening in the field of Artificial Intelligence (AI) and its sub-set technologies. New technologies have enabled incredible progression in the finance industry. Artificial Intelligence (AI) and Machine Learning (ML) have provided the investors and customers with more innovative tools, new types of financial products and a new potential for growth.According to Cathy Bessant (the Chief Operations and Technology Officer, Bank of America), AI is not just a technology discussion. It is also a discussion about data and how it is used and protected. She says, "In a world focused on using AI in new ways, we're focused on using it wisely and responsibly."

Author : John Macintyre
Publisher : Springer Nature
Page : 1169 pages
File Size : 34,31 MB
Release : 2021-10-27
Category : Computers
ISBN : 3030895084

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This book presents the proceedings of the 2020 2nd International Conference on Machine Learning and Big Data Analytics for IoT Security and Privacy (SPIoT-2021), online conference, on 30 October 2021. It provides comprehensive coverage of the latest advances and trends in information technology, science and engineering, addressing a number of broad themes, including novel machine learning and big data analytics methods for IoT security, data mining and statistical modelling for the secure IoT and machine learning-based security detecting protocols, which inspire the development of IoT security and privacy technologies. The contributions cover a wide range of topics: analytics and machine learning applications to IoT security; data-based metrics and risk assessment approaches for IoT; data confidentiality and privacy in IoT; and authentication and access control for data usage in IoT. Outlining promising future research directions, the book is a valuable resource for students, researchers and professionals and provides a useful reference guide for newcomers to the IoT security and privacy field.

Author : Mr.Tobias Adrian
Publisher : International Monetary Fund
Page : 20 pages
File Size : 44,59 MB
Release : 2019-07-15
Category : Business & Economics
ISBN : 1498324908

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This paper marks the launch of a new IMF series, Fintech Notes. Building on years of IMF staff work, it will explore pressing topics in the digital economy and be issued periodically. The series will carry work by IMF staff and will seek to provide insight into the intersection of technology and the global economy. The Rise of Digital Money analyses how technology companies are stepping up competition to large banks and credit card companies. Digital forms of money are increasingly in the wallets of consumers as well as in the minds of policymakers. Cash and bank deposits are battling with so-called e-money, electronically stored monetary value denominated in, and pegged to, a currency like the euro or the dollar. This paper identifies the benefits and risks and highlights regulatory issues that are likely to emerge with a broader adoption of stablecoins. The paper also highlights the risks associated with e-money: potential creation of new monopolies; threats to weaker currencies; concerns about consumer protection and financial stability; and the risk of fostering illegal activities, among others.