Is car ownership becoming a luxury? 

New data shows Americans are spending a record 15% of their income just to stay on the road.

Key findings

•  Car ownership is hitting the affordability limit for many households. Americans with active auto loans spend an average of 15.0% of their income on car costs — $12,841 annually against a median household income of $85,759 — matching the threshold for being transportation cost-burdened. The strain is highest in Louisiana (23.2%), Mississippi (21.5%) and New Mexico (19.8%).
•  Rising fixed costs, especially loan payments and insurance, are driving the burden. Loan payments average $7,275 annually, far more than insurance ($2,277), gas ($2,105) or maintenance ($1,184). Insurance costs have surged 37.5% since 2021, outpacing income growth (23.9%) and other vehicle expenses.
•  Americans are divided on affordability, but many feel priced out personally. Equal shares say car ownership is still reasonably affordable (39%) and a financial stretch (39%). At the same time, 39% say owning a car is a luxury they can’t afford.
•  Costs are affecting both daily budgets and financial resilience. Purchase price (30%) and monthly payments (20%) are the toughest expenses to manage, while 42% report at least frequent stress about car costs. When faced with a $1,000 repair, many would turn to savings (28%), but others would rely on credit and carry a balance (17%) or delay the repair (13%).

Full rankings: Where car ownership costs take up the biggest share of income among active auto loan holders

Read more at Lending Tree

ValidiFI Wins “Consumer Lending Innovation Award” in 10th Annual FinTech Breakthrough Awards Program

Prestigious Annual Awards Program Celebrates a Decade of Recognizing the World’s Most Innovative Financial Technology Companies

ValidiFI, Inc., a leading provider of alternative data and predictive analytics, today announced it has been selected as the winner of the “Consumer Lending Innovation Award” in the 10th annual FinTech Breakthrough Awards program conducted by FinTech Breakthrough. This independent market intelligence organization recognizes the top companies, technologies, and products in the global fintech market. 

In today’s consumer first era, lenders need deeper, more precise intelligence to responsibly expand access to credit. ValidiFI offers solutions that help financial service providers succeed in this new environment, delivering advanced credit risk intelligence that empowers consumer lenders across the spectrum—including subprime, near prime, installment, and BNPL providers, as well as fintechs, credit issuers, and credit assessment platforms.

Survey: Speedy personal loan approvals drive growing

customer satisfaction in nonbanks

As financially vulnerable customers lean on personal loans to consolidate debt and cover unexpected expenses, nonbank lenders are closing the satisfaction gap with traditional banks, according to a new survey by JD Power.

Overall customer satisfaction with personal loan providers was 706 on a 1,000-point scale, up two points from the 2025 study, according to the survey. Speed was a key driver of overall satisfaction. Satisfaction dropped sharply with delays, down 41 points when approval takes more than an hour and down 47 points when funding takes more than one day after approval. Nonbanks lead in speed, with 68% of customers receiving funding within one day vs. 58% at banks.

“Nonbanks are making measurable gains with financially vulnerable customers by meeting their needs for speed, simplicity and certainty, even as overall satisfaction across the market remains relatively unchanged,” said Bruce Gehrke, senior director of wealth and lending intelligence at JD Power. “If banks don’t adapt to those expectations, that opportunity quickly becomes a competitive risk.”

Read more at ABA Banking Journal

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Final: Consumer sentiment rose 4.7 points in June

Consumer sentiment increased 4.7 points month-over-month in June to 49.5, down 11.2 points from one year ago, according to final results of the University of Michigan Surveys of Consumers. The Current Economic Conditions Index edged up 1.9 points from the previous month to 47.7 but down 17.1 points from the previous year. The Consumer Expectations increased 6.6 points to 50.7, 7.4 points lower than the June 2026 Index.

Consumer sentiment increased 10% above the previous month as gas prices moderated along with consumer worries. Increases were seen across income, wealth, and political affiliation. Expected business conditions over the next five years rose 16% as consumers’ worries over long-term consequences of the Iran conflict appear to be easing. Still, sentiment remains unfavorable, down 13% from last February’s reading prior to the start of the Iran conflict, and down 20% than a year ago. For the third straight month, the cost of living remains as consumer’s top issue. Over half of consumers spontaneously mentioned that high prices are weighing down their personal finances.

Read more at ABA Banking Journal

Your Next Capital Raise Starts Here.

Grow with certainty.

Our clients rely on us to complete an acquisition, expand their product line, or capitalize for growth. We deliver with a full suite of investment banking services. We are industry agnostic with extensive expertise in specialty finance, consumer finance, real estate, sports & entertainment, infrastructure, healthcare, technology and transportation businesses.

Capital Raises

Our team of senior investment bankers provides comprehensive transaction management every step of the way. It starts with identifying the appropriate capital structure and capital sources to introducing strategic partnership relationships, and continues through to the close of the transaction. From business lines of credit funded by banks to unitranche facilities, receivables financing facilities, ABL, cash flow loans originated by non-bank capital providers as well as equity investors from minority to control to full buyout, we have the expertise to structure the right financing and/or capital for each situation.

• Debt and equity capital raises from $25 million to $5 billion.
• Raising minority equity, control equity and equity growth capital.
• Raising debt from senior secured to unsecured facilities.

Read more

2026 Small Business Owner Perspective Survey

• 91% of owners still plan to invest in growing their business over the next year.
• Only 3% of the 1,000 business owners surveyed in early 2026 plan to sell their business, signaling steady confidence and a willingness to keep investing.

In 2026, small business owners are navigating a changing environment with resilience and focus. See how 1,000 business owners like you are committing to growth and adapting to what comes next.

Growth continues, but feels harder won

Even with the challenges of current market conditions, business owners remain resilient. While economic pressure is still present, statistics show stress levels amongst business owners are easing across major categories. Data also suggests they are pushing forward with a focus on growth.

Read more at U.S. Bank

Optimize consumer installment lending:

Leverage efficient debit card processing solutions 

• Save with Efficient Debit Card Solutions

• Strengthen Collections, Improve Cash Flow & Enhance Customer Experience

• A Better Lending Experience

A better lending experience is rooted in offering the right payment method based on your customer’s needs. While ACH has broad applicability, the benefits of enabling instant payments via debit card with real-time funding are undeniable. Payliance’s integrated solution helps lenders deliver the speed of payments today’s borrower expects, while improving repayment rates, streamlining operations, and improving portfolio performance.

Learn more about Payliance

The SAFE Banking Act is back! See how this bipartisan

bill aims to harmonize federal and state laws for

cannabis-related businesses.

ABA-backed SAFE Banking Act re-introduced in Congress

Sen. Jeff Merkley (D-Ore.) and Rep. Dave Joyce (R-Ohio) today re-introduced the SAFE Banking Act, which would help resolve the conflict between federal and state laws on cannabis that hinder financial institutions. Specifically, the SAFE Banking Act would prevent regulators from prohibiting or discouraging financial institutions from serving cannabis businesses in states where it is legal. It would also clarify that proceeds from state-legal marijuana businesses are not considered proceeds from unlawful activity under anti-money laundering laws.

The American Bankers Association has long championed the SAFE Banking Act, which has passed the House on numerous prior occasions. ABA President and CEO Rob Nichols applauded Merkley, Joyce and their bipartisan group of co-sponsors.

“We urge Congress to advance this bipartisan legislation so banks can finally provide financial services to state-licensed cannabis businesses, as well as the growing number of accountants, skilled trades, landlords, law firms and other service providers they rely on to do business,” Nichols said. “For years, the conflict between state and federal cannabis laws has left many cannabis businesses operating in cash, creating significant public safety risks in states where it’s been legalized. The SAFE Banking Act would provide banks with a clear federal safe harbor, allowing them to serve state-legal businesses while increasing transparency for law enforcement and reducing risks to the public.”

Read more at ABA JOURNAL

REGISTER TODAY!

LEND360 is an annual summit for the leaders in online lending that

explores fintech industry trends and new technologies impacting

consumer lenders, small business lenders, service partners, investors,

bank representatives, and more.

Register today to secure your seat at the premiere event in fintech! LEND360 will focus on innovation, growth, and success in the online lending industry. As our industry continues to evolve amidst a rapidly changing fintech landscape and shifting regulations, LEND360 offers the unparalleled opportunity to stay ahead, learn from the best, and engage with fellow leaders to navigate the future together.

REGISTER FOR LEND360

How AI, Capital Deployment and Consumer Resilience Are Reshaping Finance

Jun 26, 2026

Steady consumer trends, large-scale AI investment and the evolving role of private credit are driving new opportunities—and new competition—across financial institutions.

• The U.S. financial system remains resilient, supported by stable credit, strong balance sheets and improving capital markets activity.
• Consumer spending continues to show strength, though differences across income groups are becoming more pronounced.
• Alternative asset managers are deploying capital into AI infrastructure, with private credit playing a key role in financing that growth.
• Banks are adapting their business models across deposits, payments and technology while navigating a more competitive and selective environment.
• Artificial intelligence is improving efficiency and customer engagement, but trust, security and accountability are key factors in its adoption.

Read more at Morgan Stanley

ONE COMPANION EVERYTHING YOUR CUSTOMERS NEED

A super-agent that handles nearly everything.

IntellAgent digests your products, agreements, and knowledge base — then serves every customer with the depth of your best live representative, instantly and at scale.

• Lifelike conversation
• A thinking AI representative that understands intent and responds naturally — no menus, no "press one for billing," no dead ends.
• Payments, done
• Accept and process payments by card and eCheck / ACH, deliver full balance and payoff details, and confirm every transaction.
• Recurring autopay
• Enroll customers in automatic payment plans so they never miss a due date — set up and confirmed in the same conversation.
• eStatements & resends
• Go paperless with statements by SMS or email, and resend any statement on demand the moment a customer asks.
• Multilingual by default
• Speak your customers' language fluently and switch on the fly — serving your entire base without extra staff.
• In every pocket
• Downloadable to any mobile device, giving customers 24/7 access to support and bill payment, on demand.

Learn More

4 Trends in Financial Services in 2026 & Beyond

Growth in financial services industry is accelerating. With tech innovation reshaping everything from compliance to customer experience, the industry is buzzing with new compliance and competition. This makes staying on top—and ahead—of the trends in finance is essential.

Let’s look at five of the latest financial services trends and their impact on the industry’s workforce and growth opportunities.

Trend No. 1: Generative AI and Automation

Generative artificial intelligence (Gen AI) and automation are impacting the workforce at large, and financial services is no different. Continuing to adopt these technologies will enhance an institution’s efficiency, improve decision-making, and elevate customer experiences. For example, we’re seeing a ton of opportunity with Gen AI in risk management and derivatives trading.

Read more at INSIGHT GLOBAL

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