Here's why banks don’t want the CFPB to disappear

• For years, American financial companies have fought the Consumer Financial Protection Bureau in the courts and the media.
• Now, with the CFPB on life support after the Trump administration issued a stop-work order and shuttered its headquarters, the agency finds itself with an unlikely ally: the same banks that reliably complained about its rules and enforcement actions.
• If the Trump administration succeeds in reducing the CFPB to a shell of its former self, banks would suddenly find themselves competing with nonbank financial players, including big tech and fintech firms with far less federal scrutiny than FDIC-backed institutions.
• "Payment apps like PayPal, Stripe, Cash App, those sorts of things, they would get close to a free ride at the federal level," said David Silberman, a veteran banking attorney.

For years, American financial companies have fought the Consumer Financial Protection Bureau — the chief U.S. consumer finance watchdog — in the courts and media, portraying the agency as illegitimate and as unfairly targeting industry players.

Now, with the CFPB on life support after the Trump administration issued a stop-work order and shuttered its headquarters, the agency finds itself with an unlikely ally: the same banks that reliably complained about its rules and enforcement actions under former Director Rohit Chopra.

Read more at CNBC

Will the European Union's Instant Payments Regulation Force the Hand of US Payments? Federal Reserve Bank of Atlanta

We are all familiar with the 10-second countdown to the new year. Imagine receiving money from a friend in a different country that clears and settles in that same amount of time. Cross-border payments may typically take days to clear and settle. The European Union (EU) has made steps to change this. As of January 9, 2025, banks and payment service providers (PSPs) located in euro area member states must be set up to receive instant payments, while they have until October 9, 2025, to implement send capabilities. By 2027, all Single Euro Payments Area (SEPA) countries must offer instant payments. SEPA includes more than 30 countries located both outside and inside the European Union.

The Instant Payments Regulationicon denoting destination link is offsite (IPR) requirements are intended to increase the adoption of the SEPA instant credit transfer, which launched eight years ago:

The efforts of the European payments industry have not proven sufficient to ensure a high uptake of instant credit transfers in euro at Union level. Only a widespread and rapid increase in such uptake could unlock the full-scale network effects of instant credit transfers in euro, leading to benefits and economic efficiency gains for payment service users and PSPs, reduced market concentration, and increased competition and choice of electronic payments, in particular for cross-border payments at the point of interaction. (Resolution 2)

Read more at Federal Reserve Bank of Atlanta

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80% of Pay-by-Bank Users Report Better Data Security and Lower Cart Abandonment

As digital payments evolve, pay by bank is gaining traction in consumer-facing sectors.

The payment method is in its early stages, but it’s already helping reduce cart abandonment, improve data security and lower transaction costs.

The PYMNTS Intelligence report “Cost Concerns Hinder Merchants’ Pay-by-Bank Adoption — but Current Payments Could Cost More” found that despite concerns over cost and complexity, pay by bank could be more cost-effective than traditional payment methods like credit and debit cards.

The Benefits of Pay by Bank for Early Adopters

Consumer-facing companies that have adopted pay by bank are seeing advantages, according to the report. All the companies surveyed reported lower cart abandonment rates, highlighting their effectiveness in keeping customers engaged. Additionally, 80% of businesses using pay by bank said enhanced data security for their customers was a benefit.

Read more at PYMNTS.COM

Don't Cap Credit Card Interest Rates

A proposal to cap credit card interest rates at 10% is gaining support from politicians on both the left and the right. Advocates argue that this policy will work to the advantage of potential borrowers who will no longer be charged rates of 25% or higher.

But things aren’t so simple. For one, there’s a straightforward economic argument against a cap on credit card interest rates: companies simply won’t extend credit to higher-risk borrowers if they aren’t able to secure a higher potential payout to offset the risk of default. (By analogy, you’re unlikely to invest in a high-risk tech startup instead of blue chip stocks unless the potential payout is high enough to offset the increased risk.) And this outcome would be bad for those borrowers since they would no longer be offered credit at all. Surely, an offer of a high interest credit card is better than no offer at all—more on this below.

Read more at ECONLIB.ORG

Banks and FinTechs See Stablecoins’ Cross-Border Payments Potential

The world’s biggest banks and FinTechs are scrambling to roll out their own stablecoins.

It’s a sort of “gold rush” driven by the anticipation that cryptocurrencies will transform the cross-border payments market, the Financial Times (FT) reported Monday (March 10).

For example, the report said, Bank of America recently said it would consider issuing its own coin, joining the likes of PayPal, Stripe and Revolut. It’s a trend being driven by rising acceptance of stablecoins — digital assets pegged to fiat currencies — among regulators around the world, the FT added.

“It’s about people selling shovels in the stablecoin gold rush,” said Simon Taylor, co-founder of FinTech consultancy 11: FS, who described the situation as financial institutions experiencing FOMO (“fear of missing out”).

Read more at PYMNTS.COM

5 Key Trends Impacting the Credit Union Space in 2025

AI, faster payments, fintech partnerships, core modernization and regulatory uncertainty are all keeping CUs on their toes this year.

With 2025 in full swing, several hyper-relevant trends are emerging in the financial services sector. The impact of AI, faster payments and regulatory shifts should be top of mind for institutions of all sizes, particularly credit unions seeking to maintain a solid foothold this year and beyond. Here are five trends that credit unions should have on their radar for 2025.

1. Faster Payments

It’s been over a year since the launch of the FedNow Service, which provided the first new U.S. payments rail in over 50 years. Since hitting the market, FedNow has ignited activity among financial institutions, empowering credit unions to understand their options better and navigate potential use cases for business and customer clients.

Read more at CREDIT UNION TIMES

Walmart CEO sounds alarm on a big problem for customers

As much as it's a difficult time for retailers in the United States, it's even more challenging to be a consumer. 

Retailers have been struggling with a great consolidation, where smaller mom and pop operations are getting eaten up by larger corporate incumbents.

It's difficult to operate profitably in an environment with high interest rates and increasingly skittish consumers who eye every penny and aren't willing to push their budgets. 

But it's even more difficult to be a consumer. 

Prices are rising for just about everything; the most recent CPI found that the cost of foods and services rose by 0.5% for January after rising 0.4% for December. 

Read more at The Street

Consumer Trends Open Doors for Credit Unions in Auto Financing

Equifax shares solutions to help credit unions responsibly grow their auto portfolios while managing risk.

Last year, the Federal Reserve cut interest rates a total of three times as inflation began to recede. This came as a much-needed financial respite for Americans forced to contend with borrowing costs that reached their highest levels in 23 years.

Changes in consumer behavior continue to impact the auto financing industry, presenting a number of opportunities and challenges for lenders. If interest rates continue to fall, lenders may be able to loosen lending standards and expand their underwriting capacity. As lenders extend loans, consumers can spend more on a new vehicle as the cost to finance decreases. Despite captive lenders – those tied to automakers – accounting for a major percentage of auto loan originations, many consumers consider turning to credit unions to finance their vehicles.

Read more at CREDIT UNION TIMES

Early Pay-by-Bank Adopters Poised to Win With Gen Z and Millennials

Younger consumers are much more open to trying new payment methods, and payments players must be prepared to offer them the spear-tip mechanisms they crave.

These digital-first generations, like Gen Z and millennials, prioritize convenience, speed and security in their payment choice. As merchants look to navigate an increasingly complex payments landscape, a new contender is emerging that promises not only cost savings but also enhanced customer experiences: pay by bank.

Against a backdrop where these consumers’ comfort with digital banking and FinTech apps is creating fertile ground for the widespread adoption of pay-by-bank solutions, PYMNTS sat down with Christina Potter, head of eCommerce at Trustly, and Vivian Chang, vice president of eCommerce at GNC, to discuss the technology.

“What we’re seeing — and I think what everyone’s seeing — is more interest around pay by bank as a way to accept payments,” Trustly’s Potter said. “It’s obvious that it’s a lower-cost payment method utilizing ACH rails. But there’s more to it than just that.”

Read more at PYMNTS.COM

How to Get Your Financial Services Content Indexed by AI Engines

Search is expanding beyond Google. Brands need to prepare their websites and content distribution strategies to get their content indexed by these alternative engines. This marks the biggest disruption since Google began dominating search in the early 2000s. It also presents brands with a new opportunity to enhance their content visibility.

For the first time in over 20 years, consumers have a new way to access information on the internet. This disruption, initially catalyzed by ChatGPT 15 months ago, is now the fastest-growing area within AI. With the proliferation of many more large language models (LLMs), consumers will increasingly obtain information from sources other than Google. This shift offers a unique opportunity for brands. Data from our analytics platform shows an exponential increase in traffic from AI-driven LLMs over the last few months—a trend we expect to persist in the foreseeable future.

Read more at The Financial Brand

More Americans Are Missing Their Car Payments Than Any Time In 30 Years

These days, there are a whole host of cheap cars on sale. And yet, even with budget options aplenty, it seems that car-owning Americans might increasingly be feeling the pinch amidst ongoing cost-of-living struggles. As covered by Bloomberg, an increasing number of people are missing their car payments.

It’s fair to say that America is undergoing some interesting economic times right now. Inflation has continued to take its toll on household budgets at the same time that higher interest rates have made loans more difficult to service. Add all that together, and it makes a perfect storm for borrowers that may have already been stretching to make their payments.

Collected by credit analysis firm Fitch ratings, the data is stark. The number of car owners missing their payments is now at its highest level in over 30 years. According to the agency, 6.56% of subprime auto borrowers are 60 days behind on their payments or more, which is the greatest level since the company’s records began in 1994.

Read more at The Autopian

Western Union Recognized as Top International Money Transfer Service

Best Money Transfer Service Canada (2025): Western Union Recognized as Top International Money Transfer Service by Expert Consumers

Western Union has been recognized as the leading international money transfer service in Canada, according to Expert Consumers' annual review of financial services. As the global demand for secure and efficient cross-border transactions continues to rise, Western Union remains at the forefront, providing Canadians with a reliable solution for sending money abroad.

Read more at YAHOO/FINANCE

Are You a Check Casher / Money Transmitter Are You a Grocery Store?

Maya’s Smart ATM will increase your foot traffic. All you need to provide is four square feet of space, internet connection, and electricity. Watch the following video and find out how we bring new customers to your store!

Can’t find cashiers? Hourly wages going up? Just like the self-checkouts at grocery stores, Maya’s Smart ATM can help you reduce your overhead. You can also set up a new location inside a retail store with our Smart ATM. All we need is four sq. ft. of space.

• No Cashiers Needed
• New Location in a Day
• Reduce Long Line
• Private Label

Read more at MAYA

How Banks Win the Next Generation of Business Owners

The "Great Wealth Transfer" is poised to reshape the banking landscape as $84.4 trillion in assets passes from baby boomers to younger generations over the next two decades. This shift presents a unique challenge for community banks and credit unions, as they must adapt to the digital-first expectations of millennial and Gen Z business owners.

Over the next 20 years, baby boomers will pass down an estimated $84.4 trillion in assets in what is being referred to as the Great Wealth Transfer. During this period, many boomer business owners will retire and turn their businesses over to younger generations. As a result, a growing number of small businesses will be piloted by individuals with more modern banking expectations.

To navigate this transition, community banks and credit unions must ensure their business banking solutions deliver the features and experience this younger set of owners requires.

Read more at The Financial Brand

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Smaller Card Issuers Risk Losing Volume to Bank and Fintech BNPL Players

Jumping Aboard the BNPL Bandwagon Becomes a ‘Must Do’ Even for Smaller Banks

The top buy now, pay later providers in J.D. Power's latest satisfaction survey are legacy card issuers. But fintech players have growing advantages — and smaller issuers are struggling to fend off both.

Banks and credit unions that haven’t mapped out their route into the buy now, pay later fray are running out of time.

The risk goes far beyond losing share of traditional credit card volume to buy now, pay later fintechs like Klarna and Affirm and payments powerhouses like PayPal. In Cornerstone Advisors’ "What’s Going On in Banking 2025" study, Ron Shevlin, chief research officer, points out that nonbank competitors hit the industry with double trouble.

First, banks and credit unions lose an indeterminate piece of credit card volume and outstandings, plus associated interchange income. Shevlin also points out that many BNPL users’ demographics suggest that they would use debit cards for purchases absent the installment plans, also a source of interchange income. (And community banks and credit unions receive a higher interchange fee on debit card transactions than do larger institutions.)

Read more at The Financial Brand

5 money lessons Warren Buffett taught his kids that you can teach yours

Billionaire Warren Buffett, the Oracle of Omaha and CEO of Berkshire Hathaway, has built his fortune on principles of patience, smart investing, and financial discipline. But beyond his boardroom successes, Buffett has also made it a priority to pass on key money lessons—not just to his own children but to young people everywhere.

In 2011, Buffett helped create Secret Millionaires Club, an animated series aimed at teaching kids the fundamentals of business, investing, and financial literacy. The show, which ran for 26 episodes, followed a group of enterprising children who sought Buffett’s guidance on real-world money matters. Buffett himself voiced his animated character for the first few years, ensuring that his wisdom was passed on in an engaging and accessible way.

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"It's never too early to help kids understand money," Buffett told Yahoo Finance in 2013. "Whether it’s understanding the cost of the new toy they want or the value of saving money."

Read more at The Economic Times

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The Next Wave of Open Banking: New Rules on Personal Financial Data Rights: McGlinchey Stafford

A rapid transformation in consumer finance is being brought about by open banking—a pivotal innovation that allows consumers to give third parties real-time access to their detailed financial data. Open banking has the potential to increase transparency, promote account portability, spur competition, and drive the next wave of innovation in consumer financial services.

Organic Market-Led Growth in the US

Over the last twenty years, open banking technology and use cases in the United States have developed organically, without significant federal or state regulatory intervention. The growth of open banking has been led by data aggregators—middlemen that use technology to extract data from a broad swath of financial institutions and provide it to third parties, which have predominantly been nonbank fintechs but increasingly include banks. Open banking creates opportunities for the companies leveraging this data to offer innovative products and features. But it simultaneously exposes consumers and financial institutions to significant risks, including data security vulnerabilities and unauthorized data use.

Read more at JD Supra, LLC

Costs of child care now outpace college tuition in 38 states, analysis finds

The study also found child care prices have exceeded rent in 17 states and the District of Columbia.

The cost of child care now exceeds the price of college tuition in 38 states and the District of Columbia, according to a new analysis conducted by the Economic Policy Institute.

The left-leaning think tank, based in Washington, D.C., used 2023 federal and nonprofit data to compare the monthly cost of infant child care to that of tuition at public colleges.

The tally increased five states since the pandemic began. EPI’s last analysis relied on 2020 data, which showed child care costs outstripped college costs in 33 states and Washington, D.C., said EPI spokesperson Nick Kauzlarich.

The organization released a state-by-state guide on Wednesday showing the escalating cost of child care. Average costs range from $521 per month in Mississippi to as much as $1,893 per month in Washington, D.C., for households with one 4-year-old child, EPI found.

Read more at STATELINE.ORG

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