As such, lenders have been obligated to reinvest in the communities in which they operate, including low-income areas.
But as the banking world shifted towards digital, the rule was in need of a revamp. For years, a proposal has been in the works.
As finalization loomed closer, banks showed concern. In a letter written to federal regulators, a delay in finalizing the rule was requested. Apparently, passing the rule now could disincentivize mortgage lending to lower-income families.
It was swiftly ignored, and yesterday, the official legislation was issued to make the long-awaited adjustment.
USA: The benefits and drawbacks for banks in buying fintechs American Banker’s latest innovation report found that strategic corporate transactions are important for most banks but offer distinctive challenges. Fintech acquisitions give banks maximum control but can be hard to integrate if the buyers don’t approach the process thoughtfully.
Global: Value-added services: A missed opportunity for banks in commercial payments? Fintechs and Big Techs are pushing the frontiers in the payments space, increasing competitive pressure on traditional banks and incumbent payments providers. While there are many reasons behind non-bank institutions outperforming banks, part of it is that their established rivals are held back by legacy systems.
Global: The impact of BigTech on BankTech and FinTech (BIS report) This month the Bank for International Settlements (BIS – the guys who do Basels) released a report on the implications of BigTech on FinTech and banking. The report is not what I expected, as it is far too simple in its thinking imho, but it is worth a read. Maybe next time, they’ll ask yours truly.
Isabelle is a journalist for Fintech Nexus News and leads the Fintech Coffee Break podcast.
Isabelle's interest in fintech comes from a yearning to understand society's rapid digitalization and its potential, a topic she has often addressed during her academic pursuits and journalistic career.