Economics major studies financial inclusion deficits following peer-to-peer lending law

An estimated 4.5% of U.S. households (approximately 5.9 million people) were “unbanked” in 2021 meaning they didn’t have a checking or savings account at a bank or credit union. These unbanked rates were higher for households with lower income, less education, and Black and Hispanic residents, among other demographics. For her Independent Study at The College of Wooster, Amanda Iskin ’24 wanted to study the impact of peer-to-peer (P2P) lending on this population. 

“Through coursework and research assistantships, I learned how to formulate research questions, gather and analyze data, and construct compelling arguments.” 

—Amanda Iskin ’24

Working with I.S. mentor, Amayaz Moledina, professor of economics and business economics at the College, Iskin focused on a change in Iowa’s laws that limited access to popular peer-to-peer lending sites. “By comparing what happened in Iowa to similar states,” she said, “I found that after the restriction, people in Iowa were more likely to turn to expensive payday and pawnshop loans, suggesting that peer-to-peer lending was helping people avoid these costly alternatives before the law changed.”

Q: What excites you about your I.S.? 

Iskin: What excites me the most about my I.S. is that it highlights how innovative financial technologies like P2P lending can help individuals traditionally underserved by the banking system to access essential financial services. 

Q: How did Wooster prepare you for designing your project? 

Iskin: Wooster helped me develop a strong understanding of research methods and critical thinking skills. Through coursework and research assistantships, I learned how to formulate research questions, gather and analyze data, and construct compelling arguments. These skills were essential to design and conduct my project.  

Q: In what ways has your relationship with your I.S. mentor supported you throughout this process? 

Iskin was able to present her research not only with the Wooster community, but at two conferences. She is seen here with classmates Rehann Silvanus ’24 and Liam Walker ’24

Iskin: My I.S. mentor, ​​Dr. Moledina, has been my academic advisor since my first year and was essential for my project. He provided invaluable feedback and encouragement from brainstorming to the final stages of revision. Thanks to his support, I had the opportunity to present my I.S. at two conferences, broadening my knowledge and passion for research.

Q: What has I.S. taught you? 

Iskin: Throughout the process, I learned the importance of perseverance and adaptability when facing challenges in the research process. It has also strengthened my time management and organization skills, as I navigated the demands of conducting independent research while juggling other academic and personal commitments.  

“After graduation, I moved to Chicago to work at a consulting firm,” said Iskin. “This opportunity will allow me to gain valuable industry experience before starting a graduate program in economics. I am excited to apply the skills and knowledge I have developed during my I.S. to further my understanding of the financial services world.”

Posted in Independent Study on June 25, 2024.