63% of Americans live paycheck to paycheck, and many use overdrafting as a way to borrow money. The average overdraft fee is $35, even for overdrawing by a few dollars. For this reason, overdraft fees are effectively enormous interest on funds that could be buffered by overdraft protection.
Building overdraft protection features requires sophisticated cashflow and risk analysis in order to:
- Accurately predict the likelihood of overdrafts
- Provide the correct amount of protection while ensuring that the user will be able to repay
- Help the user track their cashflows including spending habits, bills, and expected income and inflows