The Financial Health Network wrote this Policy Perspective that draws on our past small-dollar credit work to inform the conversation around recent regulatory actions.

The Financial Health Network wrote this response to the CFPB’s decision to rescind the mandatory underwriting requirements of 2017 Payday, Vehicle Title, and Certain High-Cost Installment Loan Rule (Payday Rule).

Explore the federal framework governing consumer financial data in the United States and learn the critical questions arising from our changing financial data ecosystem.

Recent regulatory developments have opened opportunities for lenders – particularly banks – to offer small-dollar credit. Data shows that investing in customers’ financial health results in greater long-term loyalty and profitability. In this brief for financial institutions and other lenders, the Financial Health Network offers a series of recommendations for supporting the short and long-term financial wellness of small-dollar credit customers.

Some of the most popular financial health tools introduced by fintechs actually replicate and automate habits and “life hacks” that many households used successfully before the era of electronic banking and payments. These digital “retronovations” bode well for banks and credit unions seeking to offer services that help their customers while also bringing subscription revenues that lessen institutions’ dependence on penalty fees.

These case studies highlight our measurement of transactional indicators with three credit unions, enabling them to drive positive impact for their members and their businesses.

In this case study, we highlight our evaluation of Nusenda Credit Union’s small-dollar lending program, highlighting the positive impact on its participants and the business.

The Financial Health Network wrote this response to the CFPB’s decision to rescind the mandatory underwriting requirements of 2017 Payday, Vehicle Title, and Certain High-Cost Installment Loan Rule (Payday Rule).