“Travis Hill Nominated as Permanent FDIC Chair Amid Regulatory Reassessment”
President Trump nominated Travis Hill as FDIC chair, a post he’s held on an acting basis since January. Senate Banking Committee Chair Tim Scott endorsed Hill and sent a letter requesting his views by Oct. 20 on a broad set of questions related to deposit insurance reform.
Speaking of regulators, the Supreme Court said Fed Gov. Lisa Cook may remain in her job at least until January, when the Court will hear oral arguments in President Trump’s bid to fire her.
“Banks Ordered to Dig Through Account Closures to Find ‘Debanking’ Cases”
Federal agencies, including the FDIC, OCC, and SBA, are asking banks to identify instances where accounts were closed or services denied based on political or religious grounds. The requests vary in terms of lookback periods and compliance deadlines.
“Brett King: Why Branches Will Never Be the Center of Banking Again”
Futurist Brett King has been predicting the death of the bank branch for a very long time and in a new book—his 10th—he aims to deliver the final blow. To quote the author: “The only feasible role for branches today is in support of the digital bank, because the digital bank is the only arena where growth is guaranteed.”
“What Bankers Should Think About the End of the U.S. Penny”
The U.S. Mint will stop producing pennies in a couple of months, and I have to admit, that does not seem like a big deal to me. So, this story caught my attention; it’s actually pretty darn interesting because “the penny’s end might in fact offer deeper lessons for everyone who cares about retail financial services.”
Meanwhile, trade groups for retailers, grocers, restaurants, and convenience stores declared a “penny crisis.” In a letter to the chairs of the congressional banking committees, the groups asked Congress to allow rounding cash purchases to the nearest nickel, which remains prohibited in at least 10 states.
The government’s collection efforts against borrowers behind on their student loans could lead to higher default rates on other personal loans and lower demand for new credit. People in Gen X are being strangled by the huge chunk they hold of the $1.16 trillion (with a T) total student debt in default.
More Than a Piggy Bank: How to Deliver a Great Youth Banking Experience
Catering to children could be one way to stop funds from leaving mainstream banks ($3 trillion and counting over the last five years). By cultivating relationships with both the kids and their parents, banks can build early loyalty and keep funds. This story details everything from the visuals to the language to the content needed to capture young customers.
In Other News
The federal government is closed, aging is reversible, and a new Guiness World Record was set this week—19-foot fingernails (trust me, it’s gross but worth a look.)