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The Future of Banking is Personal

New research from Q2 reveals surprising similarities in banking preferences across generations while highlighting opportunities for financial institutions to create more personalized experiences. By leveraging data and emerging technologies, banks and credit unions can build deeper relationships with customers of all ages.

While much attention has been paid to the unique preferences of younger consumers like Gen Z, Q2’s research, conducted in partnership with Harris Poll, found more similarities than differences across age groups regarding banking. A few key findings:

• 74% of consumers across all generations want more personalized experiences from their financial institutions.
• 66% are comfortable with their bank or credit union using their data to provide personalized experiences.
• 70% are okay with using AI for fraud detection.
• 48% log into their mobile banking app or website daily.

As Jaime Dominguez, Principal Product Manager at Q2, noted in an interview for the Banking Transformed podcast, “One of the things that this report highlighted is the fact that everybody – not just Gen Zs, but every generation is looking for personalized experiences.”

Read more at The Financial Brand

Why Businesses Should Pay Attention to Emerging Payment Solutions

Many merchants are hesitant to take the plunge on new payment methods because they are concerned about the time or resource investment, as well as the ever-present threat of fraud.

However, in many cases, the benefits of adopting emerging payments dramatically outweigh the drawbacks. For instance, many younger consumers might not qualify for a credit card, but they can qualify for a buy now, pay later loan, which typically requires only a soft credit check. Adding BNPL support could aid a merchant in making inroads with a younger clientele.

Though mobile payments might often be associated with a younger demographic, contactless payments and digital wallets have reached ubiquity among all ages. The current use cases for these methods are only the tip of the iceberg—tap-to-phone contactless technology could revolutionize payments for small businesses, and digital wallets can give loyalty programs a substantial edge.

Read more at PaymentsJournal

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

• #IRS Direct File is expanding to a dozen new states and will cover a wider range of tax situations for the 2025 tax filing season. Read more here about the expansion of this free e-filing service: https://ow.ly/MOJB50TGNn1

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Consumers Want More and More from Mobile Banking. If You Don’t Keep Up, They Could Walk

Research by MX reports that consumer expectations for your banking app just keep getting higher. And dissatisfied users will likely jump to another app (and another bank) that ticks more boxes. How can you stay ahead in the app game?

Mobile banking apps have become table stakes for banks and credit unions, especially among Millennials and Generation Z. Research from MX earlier this year indicated that a decent mobile banking app is a must-have for nearly one in four consumers starting a relationship with a financial institution.

MX research also shows that 80% of consumers have a payment app, such as Venmo, PayPal or Cash App on their phone. In addition, 77% have a bank or credit union mobile banking app, 48% have a credit card app, 25% an investment or retirement savings app, and 17% an independent app to help manage their finances. Nearly half maintain three or more financial apps on their devices.

Read more at The Financial Brand

CFPB Orders Navy Federal Credit Union to Pay More Than $95 Million for Illegal Surprise Overdraft Fees: CFPB

Agency bans nation’s largest credit union from charging certain overdraft fees going forward

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action against Navy Federal Credit Union for charging illegal overdraft fees. From 2017 to 2022, Navy Federal charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases, even when their accounts showed sufficient funds at the time of the transactions. The CFPB is ordering Navy Federal to refund more than $80 million to consumers, stop charging illegal overdraft fees, and pay a $15 million civil penalty to the CFPB’s victims relief fund. This is the largest amount the CFPB has ever obtained from a credit union for illegal activity.

“Navy Federal illegally harvested tens of millions of dollars in junk fees, including from active duty servicemembers and veterans,” said CFPB Director Rohit Chopra. “The CFPB’s work to rid the market of illegal junk fees has saved American families billions of dollars.”

Read more at Consumer Financial Protection Bureau (CFPB)

Trade Group Says Trump Will Lower Regulations — And More

America's Credit Unions says it also expects banks to make a renewed push to remove tax exemption for credit unions.

Credit unions that have been clamoring for less regulation will get that and more under the second coming Trump administration, officials at America's Credit Unions said.

They will also see emboldened banks and other competitors renew their attack on the federal tax exemption enjoyed by credit unions since Democrat Franklin Roosevelt passed the New Deal in 1934.

Carrie Hunt, chief advocacy officer for America's Credit Unions's, said Donald Trump can appoint a new director of the Consumer Finance Protection Bureau after he takes office in January, and that new director will be able to immediately reverse rules.

Read more at CUTIMES.COM

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The U.S. Is Leading the Way in Embedded Finance

The U.S. has lagged behind other countries in the widespread adoption of financial innovations like open banking and digital assets. However, in the world of embedded finance—where financial products are integrated into non-bank software—the United States is leading the way.

According to a report from PSE Consulting and The Strawhecker Group (TSG), a third of small to medium-sized businesses in the U.S. use embedded finance services provided through software-as-a-service companies. In comparison, only 11% of smaller businesses in the UK and 6% in Germany and France use these services.

The study found that European merchants weren’t averse to SaaS solutions, but that the software companies in the region weren’t able to pique merchants’ interest with their current embedded finance solutions.

Read more at PaymentsJournal

Consumers Want More and More from Mobile Banking. If You Don’t Keep Up, They Could Walk

Research by MX reports that consumer expectations for your banking app just keep getting higher. And dissatisfied users will likely jump to another app (and another bank) that ticks more boxes. How can you stay ahead in the app game?

Mobile banking apps have become table stakes for banks and credit unions, especially among Millennials and Generation Z. Research from MX earlier this year indicated that a decent mobile banking app is a must-have for nearly one in four consumers starting a relationship with a financial institution.

MX research also shows that 80% of consumers have a payment app, such as Venmo, PayPal or Cash App on their phone. In addition, 77% have a bank or credit union mobile banking app, 48% have a credit card app, 25% an investment or retirement savings app, and 17% an independent app to help manage their finances. Nearly half maintain three or more financial apps on their devices.

Read more at The Financial Brand

Detroit to become largest US city to accept crypto payments for taxes

Starting mid-2025, Detroit residents can pay taxes and fees in crypto, with blockchain entrepreneurs invited to enhance civic solutions.

Key Takeaways

• Detroit will begin accepting crypto assets for tax payments from mid-2025, making it the largest US city to do so.
• The initiative aims to modernize public services and improve accessibility for unbanked residents.

Detroit will soon allow residents to pay taxes and other city fees with crypto, becoming the largest US city to adopt crypto payments. 

City officials announced that this option will be available mid-2025 and managed securely by PayPal. This new payment method aligns with Detroit’s broader strategy to modernize public services, strengthen civic engagement, and drive economic growth.

Read more at CRYPTOBRIEFING.COM