News
Rate cap debate sidesteps big unknowns in credit card pricing
12+ hour, 57+ min ago (1316+ words) WASHINGTON " President Donald Trump's headline-grabbing ultimatum for a 10% interest rate cap on credit cards failed to materialize by his self-imposed deadline of January 20th." Last week, during a stump speech in Iowa, Trump didn't mention credit cards or rate caps. Meanwhile,…...
Loyalty coalitions are balance-sheet risks masquerading as marketing
4+ day, 13+ hour ago (292+ words) Whether a coalition works or fails largely depends on three structural decisions: settlement timing, breakage modeling and arbitrage prevention. Airlines and hotel chains are taking advantage of the banking-as-a-service model and favorable debit interchange regulations offered to bank issuers with…...
Restricting industrial loan charters would be bad for the economy
3+ week, 6+ day ago (486+ words) A food-truck operator, a hometown car dealership, and a woman-owned neighborhood bakery seeking to grow their business and achieve their American dream choose an industrial bank as their financial partner. For small manufacturers, gig workers, hair salons and thousands more…...
Lending to nonbanks is booming. Will it last in 2026?
1+ mon, 1+ day ago (1488+ words) The sector made up roughly 40% of all U.S. bank loan growth since January, according to Federal Reserve Board data, analyzed by American Banker. Julie Solar, group credit officer for North America Financial Institutions at Fitch Ratings, said the risks of private…...
CFPB: Earned wage access is not credit
1+ mon, 1+ week ago (743+ words) The Consumer Financial Protection Bureau weighed in again as to whether earned wage access should be considered credit under the Truth in Lending Act in a new advisory opinion Monday, and formally rescinded a 2024 proposed interpretive rule that would have…...
Despite a tough year, SBA's popularity with lenders endures
1+ mon, 2+ week ago (992+ words) Despite a choppy year that included a fee hike, a spike in problem loans and a 43-day government shutdown, the Small Business Administration continues to attract banks." Several banks have announced plans this year to enter SBA lending or expand…...
BNPL growing as charge-offs and late fees decline: CFPB
1+ mon, 3+ week ago (785+ words) A new data spotlight report from the Consumer Financial Protection Bureau examining Pay in 4 buy now/pay later loans is offering validation for an industry that has faced criticism as point-of-sale installment lending becomes more ubiquitous." Data was collected from…...
Lenders say consumer credit conditions dipped in 3Q: Report
1+ mon, 3+ week ago (924+ words) Business conditions for consumer credit firms deteriorated during the third quarter of this year, as borrowers wrestled with higher prices, a largely static labor market and general uncertainty about the direction of the U.S. economy, according to a recent survey of…...
Regulatory proposals would loosen the ties between credit and payments
2+ mon, 1+ week ago (940+ words) There's an old joke about the bank robber who, when asked why he robbed banks, answered: "Because that's where the money is." The same can be said for why banks handle our payments " it's where our money is usually kept,…...
FICO upgrades its cashflow-powered score with real-time data
2+ mon, 1+ week ago (823+ words) FICO is bringing a real-time cashflow data upgrade to its UltraFICO score through a partnership with the data aggregator Plaid. The credit score reporting company is releasing the upgrade as credit bureaus and fintech companies pivot towards including cashflow underwriting…...