Underbanked

Even though innovative underwriting criteria can help more people get credit, the risks and potential harms of mining social media data to make loan decisions might just be too great.

The prospect of banks and credit unions meeting small-dollar loan demand is at risk under the Consumer Financial Protection Bureau's restrictive proposal.

At the same time federal regulators are cracking down on payday loans, another form of short-term credit for low-income Americans is staging an unexpected comeback.

The Bank of England is among the central banks exploring possible uses of blockchain technology. In a recent speech, a BOE official noted how it would open access to central banks beyond commercial banks. "Everyone – including individuals – would be able to hold such balances," he said.

Fintech firms and banks should collaborate on using alternative data sources to qualify more borrowers for small-dollar loans.

Embracing technology that gives innovators access to their platforms will provide banks with the upgrade they sorely need.

The Consumer Financial Protection Bureau proposal could have included flexibility for banks to offer payday loan alternatives, but the plan misses the mark.

The prepaid card issuer issued conflicting statements in recent weeks as customers complained that they were unable to access their funds.

We need to adopt a more nuanced view of credit that considers not only the cost of credit, but also the cost of default and the cost of having no credit.

While existing state laws show that payday lending curbs lead to positive outcomes, those laws will still benefit from a strong Consumer Financial Protection Bureau rule.