4 ms·

Post office banking would not be in competition with payday lenders. US Post office banks didn't originate loans. They just offered accounts and basic services.

Post office banking would not be in competition with payday lenders. US Post office banks didn't originate loans. They just offered accounts and basic services. But on a related note, is there any reasonably populated place in the US that is more than 15-20 miles from a bank or credit union? I really doubt it. People are acting like the only reason someone is underbanked is because there aren't enough banks. As a matter of fact, if you're a US citizen, all you need to set up a bank account is a smartphone or computer.

pfranz 6y ago
Reading up on this years ago, some people will cash their paychecks at payday loans. I suspected some of my friends did and I think I tried once and was aghast at the fees and went elsewhere. My understanding is many people don't have a bank account, many banks require you to have an account to cash a check, or they just don't have branches in those neighborhoods. A recent AP article[1] cites 6.5% lacking bank accounts, 16.9% of Black households, and 14% of Hispanic households. Some reasons for not having a bank account are lack of money, unfamiliarity with how banking works, and distrust of institutions. The number of households without bank accounts is dropping, though. [1] https://apnews.com/8b2b93d4e9474c418853e0f20e79aaa8 https://apnews.com/8b2b93d4e9474c418853e0f20e79aaa8
fragmede 6y ago
And a social security number, and pass a credit check, and have money to pay for the account (either directly by paying a monthly fee or through having enough cash - $x0,000 deposited there). A permanent address also really helps too. Those aren't obstacles if you already have them/can pass them, but it's quite difficult if you don't! (which; those that don't aren't the most privileged to begin with.) The unbanked/underbanked aren't usually that way because the bank building is inaccessible (though that can't help), they're that way because of other systemic issues, and having the USPS run an account ledger service to all would help. (The number of places open to those with bad credit isn't zero, but they can't just wander into any Bank of America/Chase/large national bank branch to setup an account.)
- missedthecue 6y ago
  >And a social security number, and pass a credit check, and have money to pay for the account (either directly by paying a monthly fee or through having enough cash - $x0,000 deposited there). A permanent address also really helps too. How would having the USPS open new branches help then? Unless you mean to say that they won't have to abide by the KYC regulations that any other banking institution must work with. That just opens a new can of worms.
  - fragmede 6y ago
    Requiring $30/month from people that don't have $30 keeps them from being banked, and has nothing to do with not selling guns to North Koreans.

pfranz 6y ago

Reading up on this years ago, some people will cash their paychecks at payday loans. I suspected some of my friends did and I think I tried once and was aghast at the fees and went elsewhere. My understanding is many people don't have a bank account, many banks require you to have an account to cash a check, or they just don't have branches in those neighborhoods. A recent AP article[1] cites 6.5% lacking bank accounts, 16.9% of Black households, and 14% of Hispanic households. Some reasons for not having a bank account are lack of money, unfamiliarity with how banking works, and distrust of institutions. The number of households without bank accounts is dropping, though. [1] https://apnews.com/8b2b93d4e9474c418853e0f20e79aaa8 https://apnews.com/8b2b93d4e9474c418853e0f20e79aaa8

fragmede 6y ago

And a social security number, and pass a credit check, and have money to pay for the account (either directly by paying a monthly fee or through having enough cash - $x0,000 deposited there). A permanent address also really helps too. Those aren't obstacles if you already have them/can pass them, but it's quite difficult if you don't! (which; those that don't aren't the most privileged to begin with.) The unbanked/underbanked aren't usually that way because the bank building is inaccessible (though that can't help), they're that way because of other systemic issues, and having the USPS run an account ledger service to all would help. (The number of places open to those with bad credit isn't zero, but they can't just wander into any Bank of America/Chase/large national bank branch to setup an account.)

missedthecue 6y ago
>And a social security number, and pass a credit check, and have money to pay for the account (either directly by paying a monthly fee or through having enough cash - $x0,000 deposited there). A permanent address also really helps too. How would having the USPS open new branches help then? Unless you mean to say that they won't have to abide by the KYC regulations that any other banking institution must work with. That just opens a new can of worms.
- fragmede 6y ago
  Requiring $30/month from people that don't have $30 keeps them from being banked, and has nothing to do with not selling guns to North Koreans.