American Banker: BankThink Fintechs that get bank charters should be subject to CRA. Period.

American Banker, January 13, 2021, BankThink Fintechs that get bank charters should be subject to CRA. Period.

While consumer groups and the banking industry sometimes disagree, there’s one thing we do agree on: the need to stop the Office of the Comptroller of the Currency’s last-minute attempt allowing fintechs to become national banks without adhering to the full consumer protection and community reinvestment laws.

In the latest move opening the banking door to fintechs, acting Comptroller of the Currency Brian Brooks has provided unbundled financial services to fintechs on a national scale by selecting the regulatory requirements that apply to them. That’s not the way the law works for traditional banking charters, and that’s not what generations of consumers have come to expect in their banking relationships.

But last year, Brooks made clear in public comments that the OCC has the authority to grant a bank charter to a company that does not take deposits. Our organizations disagree.

 

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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