What is Fringe Banking?

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What is fringe banking?

Rounding it up

  • Fringe banking is payday loan shops, pawn shops, and any other financial institution that charges much higher-than-average rates of interest on their services.

  • They prey on the financially excluded, who are largely low-income communities that do not have access to mainstream banking institutions.

  • Fortunately, there have been efforts to rectify financial exclusion, like Toronto’s “Banker Ladies.”

  • For systemic improvements, the government must work with the banking community and credit unions to develop solutions to serve the marginalized population.

5 min read

Sukaina Jamil
#banking#fringe banking#payday loan#discrimination

Sukaina Jamil

Sukaina Jamil is a freelance writer and communications specialist. She has previously written and worked for The Book and Periodical Council, Review of Journalism and Kaleidoscope.

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