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| 5 Things to Know this Week |
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NAFCU's widely read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources.
Lawmakers share support for CDFIs during FY23 Financial Services spending bill markup
The House Appropriations Committee conducted a markup of its Fiscal Year 2023 Financial Services and General Government (FSGG) appropriations bill last week, where lawmakers discussed several topics including funding for Community Development Financial Institutions, to which the committee shared generally positive feedback. Prior to the markup, NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter to the committee expressing support for the inclusion of $336.4 million in funding for CDFIs and $4 million in funding for the Community Development Revolving Loan Fund.
New CFPB blogs looks at addressing the financial needs of immigrants
The CFPB Monday published a new blog post focused on identifying and addressing the financial challenges of immigrants and their families. Several credit unions at the CFPB's Credit Union Advisory Council (CUAC) discussed balancing efforts to provide language access to immigrant communities and the challenges associated with hiring staff who can speak the respective languages.
The bureau identified common issues impeding access to fair and affordable financial services and products for immigrant communities including exclusive policies on account access, vulnerability to predatory service providers, as well as a lack of credit histories for refugees and newcomers.
J.D. Power releases new research on BNPL products and financial health
J.D. Power released new research that offers insights into how people are using buy now, pay later (BNPL) financing solutions and how it is affecting their financial health. J.D. Power said its Banking and Payments Intelligence team conducted the survey to “evaluate user experiences with different services and asks how the growth of these services is affecting overall financial health.”
Among the findings, BNPL still comprises a small slice of consumer financing choices, and many consumers don’t understand how various forms of financing work. Of note, the findings included that while credit and debit cards are still leading the way in overall utilization, BNPL, mobile wallet and person-to-person payments are earning high customer satisfaction scores, particularly from younger customers. In addition, the research found that “digital transactions are making it easier for young customers to overspend.”
CFPB solicits membership applications for CUAC, other advisory councils
The CFPB is soliciting membership applications for its Credit Union Advisory Council (CUAC), in addition to its other councils. According to the bureau, “membership of the advisory committees includes representatives of consumers, diverse communities, the financial services industry, academics, and economists, and appointments to the committees are generally for two years.” The bureau expects to announce the selection of new members in Fall 2022. Applications are available July 5 and will be due 5:00 p.m. Eastern on July 24, 2022.
If you are interested in becoming a member of the CUAC or are seeking a recommendation from NAFCU for your application, please reach out to James Akin, Regulatory Affairs Counsel at jakin@nafcu.org or (703) 615-5109.
SAFE Banking Act not expected to be included in Competitiveness bill
The Senate has objected to including the Secure and Fair Enforcement (SAFE) Banking Act in the America COMPETES Act following the House’s inclusion of it when passing its version of the bill in March. The House and Senate chose to hold a formal conference committee to reconcile the two versions of bill, but have not hit an agreement on a final package. Of note, Rep. Ed Perlmutter, D-Colo., has said there are other bills he could add the SAFE Banking Act to before this Congress is over, as there are ongoing discussions about possibly pairing the banking bill with other cannabis proposals that have bipartisan support.
NAFCU has previously written to Congressional leaders in the Senate sharing the association’s support for the SAFE Banking Act to be included in the America COMPETES Act.
Copyright 2022. NAFCU. (link) |
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