Underbanked

At a time when regulators, prosecutors and the media have stepped up their scrutiny of subprime auto lending, some in the industry have changed their definitions of key terms in ways that downplay the risks involved.

Last year the mail carrier's office of inspector general suggested a potential expansion into small-dollar lending, but the ambitions laid forth in a new report have been scaled back considerably.

Global financial inclusion efforts have made big strides, but documentation requirements continue to hinder access to financial services, and women and the poor remain disproportionately underserved, according to the World Bank's annual study.

Lending and access to banking services in distressed neighborhoods has risen as a result of "mission-oriented" banks, according to a new report from the National Community Investment Fund, an advocacy organization.

A statement by a foreign regulator that it might penalize banks that drop businesses due to heightened supervisory risk has spooked U.S. institutions who worry domestic agencies could follow suit.

Companies like OnDeck and Lending Club are under pressure to keep finding new borrowers, but there are signs that customer acquisition costs are rising amid heavier competition.

Western Union said it's not in talks to acquire smaller rival MoneyGram International. Bloomberg reported Tuesday that Western Union is in early-stage talks to buy the company, as both contend with competition from upstart money-transfer companies.

Western Union is in early-stage talks to acquire smaller rival MoneyGram, people with knowledge of the matter said, as both companies contend with stiff competition from upstart money-transfer companies.

There will always be a need for small-dollar loans. But loans that trap people in debt and burden borrowers with triple-digit interest rates are simply abusive.

Last month Western Union sharply cut its prices to keep pace with the retail giant, several months after MoneyGram took a similar step. The developments offer a reminder of why banks remain scared of Walmart's consumer finance ambitions.

New York Attorney General Eric Schneiderman is urging banks to reevaluate how they use credit bureaus like ChexSystems, after his investigation found that inaccurate data reported by banks is preventing some consumers from opening checking and savings accounts. Three banks already have agreed to modify their use of ChexSystems in screening potential customers.

Golden State regulators want to bar Internet lenders from linking electronically to borrowers' bank accounts and instead require them to accept paper checks as repayment. The proposal is a technological step backward, and it could ultimately force many online lenders to pull out of the nation's largest state.

The Consumer Financial Protection Bureau filed a lawsuit Tuesday against the owner of several tax-preparation outlets that allegedly steered low-income clients into expensive loans against their anticipated refunds.

Citibank and the online marketplace lender Lending Club, with the help of Varadero Capital, will provide $150 million in loans geared toward fulfilling Citi's community reinvestment obligations.

Mobile wallet developers can find a suitable business partner in prepaid-card providers, who have already been down the path that mobile has just started.

While the CFPB's proposed rules may force payday lenders to adjust their business models, well-meaning ones should be able to operate in this new framework.

FICO and two data partners are testing a credit score based on alternative data that could help banks take smarter risks on borrowers with limited credit histories, but bankers' cost concerns and adherence to traditional methods present big hurdles.

Alternative financial service providers that sell prepaid cards, bill pay, check cashing and other services to underbanked consumers are becoming more sophisticated with the ways they mine customer data.

A number of companies across the U.S. are harnessing technology to solve Americans' cash flow challenges. But there is much more to be done to bring these solutions to the millions of Americans who need them.

Bitreserve, a payments company started by CNET founder Halsey Minor that seeks to solve Bitcoin's volatility problem, has announced a new partnership with the Mexican billionaire Ricardo Salinas-Pliego and the support of two new currencies on its platform.