Increasing numbers of people are finding themselves so close to the financial brink that they must borrow against future wages just to cover the costs of everyday life. Over the past half century, the purchasing power of wages have fallen while access to credit has risen, causing credit to replace wages for an increasing number of purchases. Meanwhile, personal savings have fallen steadily from their 1970's peak. The effect of this dependence on credit is that the average American has very little financial leeway when something unpredictable happens or just needs to scrape together enough... Read more

Bronx-based Spring Bank seems like a perfect candidate for New York State's Banking Development District program, an initiative that encourages banks to put branches in low-income neighborhoods that have none. Spring Bank, recently certified as a CDFI, offers customers financial literacy courses and products like checking accounts with no fees or minimum balance requirements. But two years ago, when the bank expanded into Harlem, its application to participate went nowhere. The reason: the program was being revised and New York's Department of Financial Services was not considering new... Read more

Sixteen of the 20 largest U.S. cities are experiencing growth rates faster than their surrounding suburbs, reversing a trend towards suburban sprawl that has held since the '20s. Retiring baby boomers and millenials alike are relocating to the city in search of culture, walkability and faster-paced lifestyles. For banks, this transition is contemporaneous with hard economic times. The proclivity of younger city dwellers toward online banking has dovetailed nicely with many banks' impulse toward downsizing branches to cut costs. But regulators worry the next lending bubble could appear in... Read more

A number of Chicago-based banks, including ABC Bank and Urban Partnership Bank, are seeking ways to direct the unbanked away from predatory small dollar loans. "I think we have questions about the responsibility about some of the [small-dollar loan] products,” said Levoi Brown, chief banking officer with Urban Partnership Bank. “A lot of these people are already in debt. So what you are doing is continuing to feed that cycle.” ABC Bank offers Ready Cash, a small-dollar loan product for the unbanked. Reginald Little, loan officer at ABC, said the product... Read more

Nacha, the bank industry group that sets the rules for the network that connects every U.S. bank and credit union, has announced a new effort to achieve same-day electronic transactions. Under Nacha's proposal, payments will eventually be processed twice each weekday. But the overhaul would fall short of the near real-time systems that have been built in the United Kingdom, Mexico, Sweden and other countries -- and will also lag behind numerous proprietary real-time payment systems in the United States. The organization plans to phase in same-day capabilities in three stages, which they... Read more

ABC Bank hosted the one year anniversary party for Austin Weekly News' West Side Business Network, a group of 75 local entrepreneurs and community members. The evening included refreshments, networking and a presentation from the Oak Park Regional Housing Center on their Austin Ascending program, in which building owners are given grants to improve the appeal of their rentable units. Community organizers Austin Coming Together (ACT) also gave a guest presentation about their many programs and services that build capacity for collaborative action in four focused areas:... Read more

Boston-based OneUnited Bank has introduced two new programs designed to help people achieve healthy credit. The bank's Waive Home Loan Program aims to make home financing more affordable by waiving many home loan fees. The program, set to run through the rest of this year, is open to everyone, including first-time homebuyers. OneUnited has also launched the Unity Vista Card, a program that focuses on lending in low- to moderate-income communities. The card features a low annual rate and will not have fees for purchases and deposits. Cardholders are automatically enrolled... Read more

Consumer advocates say the payday lending reforms instituted in various states have failed to adequately address the problems of borrowers. For example, under Florida’s payday reform law, borrowers are limited to one outstanding loan at a time, may not roll over a loan and must wait 24 hours after paying off a loan before taking out another. But lenders have found ways around each of these provisions. They have circumvented the rollover bans by allowing consumers to repay their existing loan and take out another the next day. It is also possible for customers to avoid the cooling-off... Read more

As "crowdfunding" financing platforms grow more prevalent on the web, it is easier than ever for merchants to solicit funds from customers — but is it a good idea? After nine years in Brooklyn, the Chocolate Room, a specialty food shop, experienced a crippling rise in rent. The cafe’s owners, Naomi Josepher and Jon Payson, reluctantly decided to abandon their space and begin figuring out how to finance a $200,000 relocation. They settled on launching a crowdfunding campaign on Kickstarter. Word spread quickly and by the third day, the shop had more than $1,000 pledged toward its goal of $... Read more