ARLINGTON, Va. (June 1, 2023)—After the Federal Reserve issued its new Economic Well-Being of U.S. Households in 2022 report last week, based on results from the 2022 Survey of Household Economics and Decisionmaking (SHED) fielded in October 2022, Online Lenders Alliance Executive Director Andrew Duke issued the following statement:
“The latest data from the Federal Reserve demonstrates in no uncertain terms that consumers continue to need available and reliable credit options when financial needs arise—all at a time when many lenders are reporting that they are restricting credit to more consumers. While consumers’ self-reported financial well-being will ebb and flow based on their personal situations and the national economic climate, it is critical that they are empowered with viable options to help them make the best choice for their unique financial needs.”
Among the report’s findings:
- The share of adults who reported that they would cover a $400 emergency expense using cash or its equivalent was 63 percent—down five percentage points from its high in 2021. 13 percent of adults said they would be unable to pay the expense by any method, which was slightly higher than in the last survey.
- Self-reported financial well-being fell sharply and was among the lowest observed since 2016.
- Overall financial well-being declined markedly over the prior year. 73 percent of adults were doing at least okay financially in 2022, down 5 percentage points from 2021.
- The share of adults who said they were worse off financially than a year earlier rose to 35 percent, the highest level since the question was first asked in 2014.
The full report is available here.
About The Online Lenders Alliance
The Online Lenders Alliance (OLA) is the first trade association in FinTech. OLA is focused on credit inclusion, bringing together a diverse group of innovative companies who share a common goal: to serve hardworking Americans who deserve access to trustworthy credit. Our members are entrepreneurs, publicly-traded companies, lenders, credit bureaus, advertisers, lead generators, compliance professionals, and software developers who are leveraging technology to responsibly improve consumers’ financial health. Consumer protection is our top priority and OLA members abide by a rigorous set of Best Practices to ensure consumers are fully informed and fairly treated. For more information, please visit www.onlinelendersalliance.org.
