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Trump Wants to Create More Banks. Many Firms Are Heeding His Call.

Urged on by the White House and a reduction in regulatory oversight, crypto companies and automakers are among those that have applied for banking charters.

Crypto companies and financial technology upstarts have long cast themselves as challengers to traditional banks. But now, many are seeking licenses to enter the very industry they once sought to upend: That is, they want to become banks.

Dozens of financial firms — established industry veterans and nascent start-ups — have applied for banking charters. The list includes the payments behemoth PayPal; the “buy now, pay later” pioneer Affirm; all of Detroit’s Big Three automakers; World Liberty Financial, which is linked to the Trump family; and a wave of other cryptocurrency brokers and merchants.

The firms are taking advantage of Trump administration policies aimed at creating more banks, after a lengthy period during which the number of new entrants stalled.

Read more at the NY TIMES

Credit debt hits record $18.19 trillion in Q1 as subprime borrowers surge

U.S. consumer credit debt reached a record $18.19 trillion in March 2026, marking the highest balance since the Federal Reserve began tracking the metric. The milestone reflects a fundamental shift in how Americans borrow: subprime borrowers—those with weaker credit histories—are driving the surge, opening new accounts at unprecedented rates while wealthier borrowers pull back. This bifurcation signals stress in the credit market as lower-income households increasingly turn to unsecured personal loans to manage living expenses.

Quick Facts

• Total consumer credit debt hit $18.19 trillion in Q1 2026, a record high per Equifax data released May 28.
• Subprime personal loan originations surged 32.5% year-over-year, vastly outpacing prime and super-prime segments at 21.5% growth.
• Revolving credit (bankcard balances) rose nearly 4% year-over-year, outpacing the March 2026 inflation rate of 3.2%.
• Subprime auto delinquencies hit 6.9% in January 2026—a 32-year high and sign of strain among lower-credit borrowers.

Read more at ECIKS.org

Validate consumer and business bank accounts, confirm ownership, detect fraud, and assess risk 

2025 Enforcement look back: CFPB

During 2025, the CFPB has taken several steps to implement and enforce consumer financial laws consistently to ensure that markets, products, and services are fair, transparent, and competitive. The CFPB is now focusing its enforcement resources on:

• pressing threats to consumers, particularly servicemembers and their families, and veterans;
• actual consumer fraud where there are identifiable victims with material and measurable consumer damages as opposed to matters based on the perception that consumers made “wrong” choices;
• areas that are clearly within the CFPB’s statutory authority and not pursuing matters under novel legal theories, including of the CFPB’s authority;
• avoiding duplicating similar oversight either at the federal or state level; and
• actual intentional discrimination with actual identified victims.

Read more at Consumer Finance Protection Bureau (CFPB)

The Trump administration wants banks back in the mortgage business. Banks have other ideas.

Regulators hope getting banks to lend more to homebuyers will unlock more lending and give more insight into brewing risks. Analysts are skeptical.

The Trump administration and the Federal Reserve want banks to get back into the mortgage business, as part of their efforts to make homes more affordable.

Banks, though, aren’t likely to go along.

Regulators are hoping that pushing mortgage origination back to banks and away from less-regulated lenders will unlock more loans for homebuyers, give federal agencies more insight into risks brewing in the housing market and boost revenue for regulated financial institutions.

Read more at POLITICO

Have a tax law question?

Our #IRS Interactive Tax Assistant has answers.

Watch this short video to learn more:

https://youtu.be/y6HkaBkdKdU

Taxpayers can now view and submit Trump Account elections in their IRS Individual Account

IR-2026-68, May 28, 2026

WASHINGTON — The Internal Revenue Service today announced new features in IRS Individual Accounts that allow taxpayers to view and submit Trump Account elections, making it easier to invest in these tax-advantaged accounts.

Through IRS Individual Account, taxpayers can securely access their tax information and complete common tasks online, including:

View the latest submission status of their Form 4547, Trump Account Election(s) PDF, including next steps.

Submit Form 4547, Trump Account Election(s), electronically.

Jose L. Santiago

Public Affairs Specialist

Tax Outreach, Partnership and Education

Email: jose.l.santiago@irs.gov

Auto Loan Credit Scores Plummet 8 Points in Just 3 Months, And Things Are Starting To Get Slippery

Quick Read

• Auto lenders dropped median origination credit scores to 716 in Q4 2025 from 724 in Q3 2025, approving subprime borrowers with minimal financial cushion to maintain origination volume of $181 billion as rate cuts compressed margins.
• Lenders are loosening standards despite rising auto loan delinquencies at 4.8% and weakening consumer finances, creating dangerous credit exposure when household savings have depleted and spending already outpaces income.
• Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.(Sponsor)

Eight points. That is the distance between where auto loan borrowers stood three months ago and where they stand today, and in the world of consumer credit, eight points is not a rounding error. It is a signal, and the New York Fed's Q4 2025 Household Debt and Credit report is flashing it in plain sight for anyone paying attenti

Read more at AOL

The 'New CFPB' Era: Back to Basics Without Backsliding on Compliance

The Consumer Financial Protection Bureau (CFPB) has undergone significant disruption in recent years

For years, compliance teams at financial institutions have operated in a world defined by a steady cadence of new rules, expanded supervision, and an increasingly active enforcement environment. The landscape is changing fast. But the regulations themselves haven't changed.

The Consumer Financial Protection Bureau (CFPB) has undergone significant disruption in recent years. Acting Director Russell Vought moved quickly to scale back the agency, seeking deep staff reductions, canceling major vendor contracts, and initially attempting to halt new funding requests from the Federal Reserve. Courts blocked that effort and ordered the agency to remain funded, leading Vought to request $145 million in January 2026 and an additional $75.8 million in March to keep the CFPB operating.

Read more at The Banking Exchange

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Personal loan requests for everyday bills more than double since 2023

HARTFORD, Conn. (WFSB) - More Americans are turning to personal loans to cover everyday expenses as inflation continues to strain household budgets, according to a new study by LendingTree.

Last month, inflation hit its highest levels in three years. As gas stays over $4 and the cost of groceries and rent keep going up, paying for necessities is getting harder.

LendingTree found 8.4% of people using their site to search for loans said they needed the money to pay for regular bills. While that number may sound low, it’s more than double what it was in 2023, when only 3.4% said paying bills was the reason for needing a loan.

Matt Schulz is LendingTree’s chief consumer finance analyst.

Read more at WFSB

Growing share of U.S. adults say their personal finances will be worse a year from now: PEW

Amid a downbeat economic outlook and sagging consumer confidence, Americans’ views about their personal financial situation have remained relatively stable over the past year.

A majority say they’re in only fair (40%) or poor (17%) shape, according to an April 2025 Pew Research Center survey. Fewer say they’re in excellent (7%) or good shape (36%). This is very similar to how the public felt a year ago.

What has changed is the public’s outlook on the future. Roughly three-in-ten adults (28%) say they expect the financial situation for them and their family to be worse a year from now. This is up significantly from 16% who said this in May 2024.

Read more at Pew Research Center

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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.

CBA Releases Chart Book for Q1 2026

The Consumer Bankers Association (CBA) today released its Chart Book for the first quarter of 2026, which shows a continued mixed economic outlook. Consumer sentiment has weakened amid persistent inflationary pressures as elevated prices continue to weigh on household budgets. And, though consumer spending remains strong, it seems to be moving from a post-pandemic “K-shaped” recovery—where higher-income consumers significantly outpaced lower-income consumers—to a more balanced pace of spending growth across income groups, reflecting a more “E-shaped” spending pattern.

Balances on credit cards continue to increase at a slower pace. A higher percentage of consumers are paying off their full credit card balance each month compared to before the pandemic, despite elevated balances. Delinquencies for credit card and auto loans show signs of continued stabilization and improvement as growth in consumer loan demand led primarily by prime and super-prime credit card borrowers.

Read more at The Consumer Bankers Association (CBA) 

Federal Reserve Access for Fintechs: Executive Order and Federal Reserve Payment Account Proposal Signal Potential New Era for Fintech Payment Access

On May 19, 2026, President Donald Trump signed an Executive Order titled “Integrating Financial Technology Innovation into Regulatory Frameworks” (the “EO”), directing federal financial regulators to streamline regulations and reduce barriers to entry for financial technology firms. The EO separately requests that the Board of Governors of the Federal Reserve System (the “Federal Reserve” or the “Board”) conduct a comprehensive evaluation of the legal, regulatory, and policy framework governing access to Federal Reserve Bank (“Reserve Bank”) payment accounts and payment services by “uninsured depository institutions and non-bank financial companies, including those engaged in digital assets and other novel financial activities (collectively, covered firms), and those functioning as direct participants in real-time (instant) payment networks.” This language contemplates potential expansion of Federal Reserve payment services access beyond entities that are currently legally eligible under the Federal Reserve Act.

The following day, the Federal Reserve issued a notice and request for comment proposing revisions to the Federal Reserve Policy on Payment System Risk (the “PSR Policy”) and the Guidelines for Evaluating Account and Services Requests (“Account Access Guidelines”) to accommodate the provision of special-purpose accounts the

Read more at Mayer Brown

E-Complish, LLC Launches: IntellAgent™, a 24/7

AI Companion for Customer Account Management & Payment Processing

Turn Your Financial Services Website into a Revenue Engine with AI

This webinar is built for financial services marketers who want to move faster, optimize smarter, and prove measurable revenue impact.

In an era where financial services customers research, compare, and convert entirely online, a brand’s website has become its most important customer touchpoint.

Yet most banks and financial services firms are still flying blind – relying on fragmented data, gut-feel prioritization, and slow execution cycles that cost them business.

Join iQuanti on and The Financial Brand for this webinar where Vishal Maru (VP, Solutions) will walk you through how AI turns fragmented, siloed data into clear, actionable strategies – uncovering hidden performance gaps, prioritizing opportunities, and accelerating execution with precision, not guesswork.

Read more at The Financial Brand

FDIC Proposes AML and Sanctions Standards for Stablecoin Issuers

On May 22, the FDIC approved a proposed rule establishing Bank Secrecy Act (BSA) and sanctions compliance standards for certain FDIC-supervised permitted payment stablecoin issuers (PPSIs) under the GENIUS Act. The proposal would apply to PPSIs that are subsidiaries of insured state nonmember banks and state savings associations supervised by the FDIC.

The proposal would integrate stablecoin issuers into existing federal anti-money laundering and sanctions compliance frameworks. Specifically, the proposed rule would:

Require compliance with AML/CFT requirements. PPSIs would be required to comply with applicable anti-money laundering and countering the financing of terrorism requirements, including regulations issued by FinCEN.

Read more at Sheppard

Our Vision is to become the leading

PAYDAY + ALTERNATIVE LENDER in NORTH AMERICA

AI Moves From Hype to Reality in Credit Union Lending

CU Times explores where AI is reshaping lending, where organizations are struggling and why faster adoption is a necessity.

A report released late last year shows credit unions and other lenders are adopting artificial intelligence at a rapid pace, and preparing plans for further development.

Celent, a global technology consulting firm, interviewed executives at 106 lenders in August 2025: 24 credit unions, 43 banks and 39 consumer finance companies. Among the 106 lenders, 73 had assets under $20 billion, including 33 with assets under $1 billion.

Celent's "Top Insights for Generative AI in Lending Survey" included 57 lenders with consumer loan portfolios under $1 billion.

Read more at Credit Union Times

To Congress

2025 Financial Literacy Annual Report

The 2025 Financial Literacy Annual Report summarizes the CFPB’s financial education priorities including:

• Empowering military consumers, veterans, and their families to make better-informed decisions about consumer financial products and services
• Disseminating tools and resources targeted to older adults about current and future financial choices
• Providing high-quality financial education resources for kids and young people
• Equipping consumers with tools and resources to identify and avoid fraud and scams

Read more at CFPB

Payliance enables organizations to streamline

payment acceptance, minimize processing costs,

and reduce the risk of fraud.

Gen Z wants to start businesses as applications hit record high: Study

(NewsNation) — A new study found younger Americans are displaying a higher interest in becoming entrepreneurs, coinciding with a record number of business applications in 2025.

LendingTree surveyed 2,000 U.S. consumers and found a large amount (27%) say they’ve seriously considered starting a business over the past year. That figure jumps up to 51% among Gen Zers, aged 18 to 29.

Matt Schulz, LendingTree’s chief consumer finance analyst, said many young adults are drawn to entrepreneurship because they’re facing a challenging job market and seek greater financial freedom.

Read more at News Nation

Louisiana businesses could soon face penalties for debit card surcharges

Senate Bill 254 would prohibit retailers from adding surcharges to purchases made with debit cards

(KPLC) - That extra fee at the bottom of your receipt may soon come with bigger consequences for businesses across Louisiana.

Whether it’s dinner, gas, or even a quick stop at a local shop, many consumers say they’ve noticed extra charges added after paying with a debit card, the most popular term being “convenience fee” at the bottom of their receipt. Now, state lawmakers are moving to stop it.

Senate Bill 254, introduced by Sen. Beth Mizell (R-Franklinton), would prohibit retail businesses from adding surcharges to debit card purchases.

The legislation was recently passed with amendments by the Louisiana House of Representatives, 83 to 14, after already clearing the Senate unanimously.

Read more at KPLC TV

Loved by collection agencies, debt buyers, and lenders handling diverse portfolios. cf

Executive Order Directs Federal Regulators to Review Fintech Barriers and Payment System Access

On May 19, President Trump issued an executive order directing federal financial regulators to review regulations, supervisory practices, and application processes affecting fintech firms and their partnerships with regulated financial institutions. The order states that existing regulatory frameworks may create unnecessary barriers to entry for fintech companies and directs agencies to identify opportunities to streamline oversight while maintaining safety and soundness, consumer protection, and financial stability considerations.

The executive order broadly defines “fintech firms” to include nonbank companies that use technology to provide or support financial products and services, including payments, lending, brokerage activities, custodial services, and digital asset-related activities. Specifically, the order:

Read more at The National Law Review

Property Taxes Rise Across Every Major Metro, Adding To Borrower Affordability Pressure

Median tax bills increased 5.1% in 2024, with borrowers carrying mortgages facing higher costs than mortgage-free homeowners

Property taxes climbed across all 50 of the nation's largest metropolitan areas between 2023 and 2024, adding another affordability challenge for borrowers already grappling with elevated mortgage rates, insurance costs, and home prices.

According to a new LendingTree analysis, the median annual property tax bill nationwide reached $3,119 in 2024, up 5.1%, or roughly $150, from the previous year. That translates to about $260 per month in housing costs before homeowners account for mortgage principal, interest, insurance, or HOA fees.

Read more at National Mortgage Professional

Subscription Banking Is a Relationship Decision, Not Just a Pricing One

The competitive frame for retail banking has shifted, and for most institutions it has shifted faster than their loyalty and relationship programs have been able to keep up.

The most-watched consumer financial relationships of the last five years are not anchored on fee schedules. They are anchored on visible, dynamic value: what the customer has, what it earns them, and what the next step unlocks.

Retail banks are responding in three directions:

• paid subscription tiers
• earned rewards programs, and
• reimagined membership models.

Read more at The Financial Brand

3 FinTech deals account for lion share of funding this week – See this week’s 14 deals here

It was an almost identical week to the previous, with the same number of deals and just $80m separating the two. A total of $677m was raised across last week’s 14 deals.

Another similarity between the two was that the lion share of funding came from just three deals that exceeded $100m. The largest deal of the week was a Series D round raised by Mercury, a provider of financial infrastructure. The $200m investment brought Mercury’s valuation to $5.2bn.

The second largest deal of the week was closed by WealthTech unicorn Farther. The AI-native intelligent wealth management platform raised $150m for its Series D round, which was led by General Atlantic. While the company did not state its current valuation, it noted the round cements its unicorn status.

Read more at Fintech Global

Why fintech infrastructure is the next frontier for global business payments

International expansion creates new payment problems

A business selling into three countries can end up working with a dozen banks, several currencies and completely different settlement timelines. One payment clears the same day; another disappears into processing for a week because an intermediary bank — or banks — sits in the middle. Finance teams then need to reconcile manually all these cross-border payments; they match invoices, exchange rates and settlement confirmations by hand once those payments finally arrive.

BONCA, a digital payment platform focused on cross-border payments, dedicated business IBANs and international settlement infrastructure, operates around reducing that kind of fragmentation. Businesses can manage funds across multiple currencies inside one operational environment instead of juggling separate providers for settlement, currency conversion and reporting.

Read more at Tech Funding News

This Week’s Top 5 Stories in Fintech

Holding high-value assets, financial institutions remain prime targets – especially for big game hunting (BGH) cybercriminals seeking fast, high-impact payouts.

Dissecting the many threats facing this sector, CrowdStrike’s 2026 Financial Services Threat Landscape Report underscores a sharp escalation in sophisticated cyberattacks aimed at banks, fintechs and cryptocurrency platforms worldwide.

The report paints an increasingly concerning picture for the industry, with organisations facing a surge in AI-driven deception, digital asset theft and identity-based attacks – threats that are becoming progressively harder to detect.

According to the findings, hands-on-keyboard intrusions targeting financial institutions have risen by 43% globally over the past two years, climbing to 48% across North America.

Read more at Fintech Magazine

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Trading volume on prediction markets has soared in recent months: PEW

Prediction markets allow people to trade on the outcome of real-world events, from basketball games to elections. And trading volume on Kalshi and Polymarket – the two leading prediction markets – has increased dramatically since mid-2025.

Combined monthly global trading volume on these platforms has risen from less than $5 billion in September 2025 to about $24 billion in April 2026, according to a Pew Research Center analysis of data from The Block, a digital assets media and information firm.

For comparison, the total amount of money wagered through legal sportsbooks in the United States was around $14 billion per month in 2025, on average.

Read more at Pew Research Center

Social Security Change Impacts Payments for Millions as New Cards Issued

A Social Security change will impact millions of Americans this year, as the federal government begins issuing new debit cards to beneficiaries who receive their payments through the Direct Express program.

The shift is a result of a change in the program’s financial provider from Comerica Bank to Fifth Third Bank. Roughly 3.6 million beneficiaries who use the prepaid Direct Express Debit Mastercard will be impacted, though most will see no change in the amount or timing of their payments.

While the change may appear minor, it affects a specific but vulnerable group of Social Security recipients who rely on prepaid debit cards instead of traditional bank accounts.

Read more at NEWSWEEK