CFPB

The CFPB has finalized a data collection rule for lenders that extend credit to small businesses. The regulations aim to find patterns in small business lending that enhance CRA initiatives and make lending practices more equitable. However, trade groups like the ICBA and the CUNA have concerns that the additional burdens of compliance could impede CFIs’ ability to make as many loans as they do. We explain what CFIs should be aware of as this issue unfolds.

Overdraft fees provided almost $33B in income for financial institutions in 2021. This was especially important in a low-interest rate environment. Yet, consumers are pushing back on these fees and neobanks have responded by providing accounts without these fees. Should community financial institutions eliminate these fees to stay competitive?