We should think twice before cutting off access to alternative lenders that serve as a last resort for millions of low-income Americans. We should also encourage banks to remove the barriers for these customers when they want to open a savings account.
Since building loyal customers requires making changes across all areas of the organization, 'loyalty' or customer experience management programs should be geared towards change management, not market research.
Mobile banking can alleviate friction and save time for underserved, low-income consumers, but face-to-face interaction is critical to serving their financial needs.
A successful prosecution of JPMorgan would throw into disarray the banks substantial and highly lucrative asset management business, among other disincentives for the government to pursue a criminal case.
Customers want to bank in the most convenient way for them. Banks dont need to close their branches necessarily, but they certainly must transform them to address this fundamental shift in behavior.
Even if these loans did harm consumers doubtful as they were freely entered into the harm would appear quite minor compared to that which has been repeatedly imposed upon the U.S. Native American population.
Continued regulatory gaps in overdraft service put consumers at financial risk and potentially expose them to high, unexpected costs for little benefit.
These financially underserved individuals are far from disconnected. They are actually more active users of mobile phones and social media than the population at large.
Hopefully, examiners will respect good-faith efforts by banks and third-party processors to verify that a merchants business is legal rather than expect financial institutions to guarantee how courts will decide.
