SMS Reduces Overdrafts by Up to 19%

This is a United Kingdom news story, published by Phys Org, that relates primarily to Jeroen Nieboer news.

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Overdraft Alerts

Phys Org

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Automatic text message alerts would potentially result in UK banking customer savings up to $300 million

Summary

Nutrition label

91% Informative

A study published in the Journal of Finance on December 26, 2024 found that automatically enrolling United Kingdom banking customers into text message alerts reduced overdrafts and unpaid item charges by 4-to-19% resulting in an annual , nationwide potential consumer savings range of nearly $213 million to approximately $300 million at today 's exchange rate.

The study indicated that low-income customers, frequent over drafters, and financially vulnerable consumers—who policymakers most want to assist—can significantly benefit from text alerts.

In addition to Grubb , the research team included Darragh Kelly , a senior apps growth manager at Google Ireland ; Jeroen Nieboer , a London School of Economics fellow and a data science and machine learning manager at Deliveroo , a British online food delivery company; Matthew Osborne , an associate professor of marketing at University of Toronto .

VR Score

Informative language

Neutral language

Article tone

formal

Language

English

Language complexity

Offensive language

not offensive

Hate speech

not hateful