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Michigan State University Federal Credit Union is partnering with Debbie, a Miami-based fintech that helps consumers break free of delinquency and correct bad spending habits, to strengthen its financial education tools and build its deposit base.

The director of the Consumer Financial Protection Bureau told a fintech audience Thursday that banks need to make it easier for consumers to switch accounts, and should make lending decisions with less reliance on credit scores.

The de novo institution is offering treasury management and depository services to the fragmented nail-and-beauty segment. Management has hopes this will bolster its relationship banking and liquidity.

The financial institution has released a series of new products in response to a slew of competitors pursuing corporate treasury management clients.

The Florida lender hired corporate bankers in New York City who had previously worked at First Republic Bank, which collapsed last week.

Speaking before the International Swaps and Derivatives Association's annual meeting, Treasury Undersecretary for Domestic Finance Nellie Liang said liquidity and interest rate risk in the banking sector is being managed, but said fears of risk mounting in the nonbank sector are a source of concern.

The Federal Reserve Board governor said adopting policies on climate change are not necessary and risk hurting the central bank's credibility.

The Federal Deposit Insurance Corp. board voted 3-2 to propose a special assessment of 0.125% on banks with uninsured deposits over $5 billion.

House Financial Services Committee's Oversight and Investigations Subcommittee Republicans tried to pin down the Government Accountability Office on Federal Reserve criticisms, while Democrats stressed debt ceiling worries.

While the central bank's reverse-repurchase facility generally works to stabilize the financial system, under certain circumstances it would spark a rapid flow of deposits out of banks. A growth cap would prevent that problem.

"I think it's going to get worse for banks — more regulations, more rules and more requirements,'' JPMorgan Chase CEO Jamie Dimon said in a Bloomberg Television interview from Paris on Thursday.

The warning from the state's chief financial officer comes after a new law was passed banning banks from holding public funds if they use social and political factors in lending decisions.

Democrats and Republicans each said the other party's position on ESG investing carries additional costs for states.

Card balances fell by 1.5% in the first quarter from the previous three months, according to data released by TransUnion. Balances remain near a record high and are up 19% from a year earlier.

The California bank says the drop occurred last week after a news report that the lender was in talks with potential investors.

Lenders used the firm's software in nearly a quarter of originations in the second half of last year, up from 14% over the same period in 2021.

The North Carolina company, which acquired the remains of Silicon Valley Bank in late March, is now taking steps to shore up its deposit base. Those efforts, which follow outflows tied to Silicon Valley Bank customers, include paying higher rates at its nationwide online bank.

The House Financial Services Committee's Subcommittee on Financial Institutions and Monetary Policy released a number of discussion drafts that would increase transparency requirements at the Federal Deposit Insurance Corp. and the Federal Reserve.

The credit card company believes that its Prism subsidiary will better serve other financial services companies as an independent firm.

The move cancels the fee Fannie Mae and Freddie Mac would have imposed on certain loans for which the borrower's total debt exceeded 40%.