Latest news with #AmericanBankersAssociation
Crypto Insight
3 days ago
- Business
- Crypto Insight
US bank lobby challenges crypto firms' bids for bank licences
US banking groups have urged the country's banking watchdog to postpone its decision on crypto companies' bank licenses until more details about their plans are public, claiming that allowing the bids would be 'a fundamental departure' from current policy. The American Bankers Association and other bank and credit union trade groups said in a letter to the Office of the Comptroller of the Currency (OCC) on Thursday that its approval of national bank charters for the likes of stablecoin issuers Circle Internet Group and Ripple Labs 'would raise significant policy and process concerns.' 'There are significant policy and legal questions as to whether the Applicants' proposed business plans involve the types of fiduciary activities performed by national trust banks,' the groups argued. Circle, Ripple and Fidelity Digital Assets are among a recent group of crypto-focused firms that have applied for banking licenses with the OCC, which would essentially allow them to be their own bank, settle payments faster and be regulated at a federal level, allowing them to operate in every state. Banks want a pause on greenlighting charters for crypto The groups have asked the OCC to postpone its decision on the crypto firms' charter bids, claiming that the public portions of their applications 'do not provide sufficient information for the public to assess or provide meaningful comment on the Applicants' proposed business models and operations.' They added that the public should also be able to scrutinize the OCC if it allows the applications, adding it would be a departure from long-standing policy as the business models put forward by the crypto companies 'do not involve the types of fiduciary activities historically performed by national trust charter banks.' 'Providing custodial services for digital assets is not a fiduciary activity, and granting charters where traditional fiduciary activity is absent — or, is secondary at best — would represent a significant change in OCC policy that should be made only pursuant to a proper public notice and comment period,' the groups wrote. They said if the crypto firms are allowed to be national trust banks that provide 'traditional banking services like payments,' then other companies could follow, which the groups said would present a 'material risk to the US banking and financial system.' 'Interesting reaction' by banking groups Caitlin Long, the founder of crypto-focused bank Custodia Bank, posted to X on Saturday that the group's issue on whether trust charters can be used as 'de facto bank charters' with just a fraction of the capital requirements is 'very likely to be litigated.' 'Interesting reaction by the bank trade associations to fight,' she added. 'If what they fear will happen ends up happening, then why wouldn't banks just convert to trust companies and keep their existing businesses at a small fraction of the capital requirements and regulations?' Venture firm Paradigm's government affairs head, Alexander Grieve, said in response to the letter that 'banks and credit unions rarely agree on anything. But they seem to agree that they're finally about to have some competition from crypto.' Expect more crypto firms wanting bank charters Logan Payne, a crypto-focused lawyer at Winston & Strawn, recently told Cointelegraph that the newly passed stablecoin laws under the GENIUS Act create an incentive for stablecoin issuers to seek a banking license. A new stablecoin license under the laws would limit a crypto firm's activity to only issuing stablecoin, but Payne said that 'pretty much every stablecoin issuer in the United States issuing under US law right now engages in activities outside the scope of that license.' He said a stablecoin issuer would need state-level money transmission licenses to operate nationally, even with the new GENIUS Act license, creating an incentive for stablecoin issuers to apply for a national trust bank charter with the OCC. Payne said the charter 'allows for them to engage in stablecoin issuance plus a wider range of activities, but without having to get state-to-state licenses.' Source:
Yahoo
02-07-2025
- Business
- Yahoo
In the age of apps and online banking, banks are opening dozens of new branches in Massachusetts — here's why
In the era of mobile apps and digital banking, it's not surprising that several banks are shuttering some of their branches. But now, at least in some markets, a few banks are actually opening brand-new branches. An average of 1,646 branches have closed each year in the U.S. since 2018, according to an analysis of Federal Deposit Insurance Corp. data by Self Financial. California had the most closures, followed by Florida and Illinois. If branch closures were to continue at this rate, the report says there'd be no branches left in the U.S. by 2041. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The pace picked up in Q1 2025 with a total of 148 branch closures, according to S&P Global Market Intelligence data. That was led by U.S. Bancorp (reporting 50 branch closures) and Wells Fargo & Co. (reporting 23 branch closures). But, despite this overall decline, some banks are actually building new branches or renovating older ones. Indeed, the American Bankers Association says a 'counter trend' has emerged, 'gaining momentum over the past two years to where now many of the nation's largest banks have announced specific plans for widespread branch expansion.' And there's one state where we're seeing dozens of new branch openings. Here's why. Chase plans to open 50 new branches in Massachusetts by 2027, including small towns such as Sudbury (with less than 20,000 people) and Weston (with less than 12,000 people). This is part of a larger expansion the commercial bank announced last year, which involves opening more than 500 new branches and renovating 1,700 locations across the country. 'You don't see it in lower-income neighborhoods,' Eric Rosengren, former president of the Federal Reserve Bank of Boston, told CBS News. 'You see it in wealthy neighborhoods, because even a few wealthy individuals can provide a significant amount of income coming from the wealth management.' That's because many affluent customers still value face-to-face financial advice. Indeed, JPMorganChase is expanding its 'affluent' offering with 14 new J.P. Morgan Financial Centers across four states, for a total of 16 locations — with plans to double that by the end of next year. These centers, based in Massachusetts, California, Florida and New York, are designed to provide a 'uniquely tailored and high-touch experience' to high-net-worth clients. JPMorganChase isn't the only one expanding its offerings. 'Large regional and national banks, such as Chase, Bank of America, Fifth Third, PNC and Huntington, have all announced significant branch expansion efforts in recent years,' according to an industry insight by the American Bankers Association. Bank of America, for example, has plans to open more than 150 new branches across 60 markets by the end of 2027, including 40 this year. While 90% of Bank of America's client interactions take place through digital channels, its branches 'have adapted to focus on meeting spaces where clients can have in-depth conversations about their finances,' according to a release. Last year, about 10 million clients made appointments with its specialists in physical locations. Read more: You don't have to be a millionaire to gain access to . In fact, you can get started with as little as $10 — here's how Opening new branches could be a way for some banks to expand their wealth management offerings in new markets without having to acquire other banks. While Chase is targeting affluent markets, its expansion will also include entry into 'low-to-moderate income and rural communities with little access to traditional banking services,' according to a release. While Self Financial's report predicted that bank branches could become extinct by 2041, its analysis also found that 39% of respondents had the most trust in banks with physical branches. In some cases, physical branches are still very much a necessity. But banking deserts (neighborhoods with no nearby branches) are on the rise, according to the U.S. Bank Branch Closures and Banking Deserts **report. 'Despite the overall trend toward online banking, older, disabled and lower-income communities often rely on in-person banking. For people facing other barriers to banking services, having no bank branches nearby could limit opportunities to foster financial health and build wealth,' according to the report. It also points out that having a personal relationship with your local banker is important for loan and grant applications, fraud prevention and financial guidance. As well, many small businesses still rely on those personal relationships for financing applications. And, despite a common belief that younger generations do all their banking online, a few studies have found that Gen Z still likes to have branch access — even more so than millennials. One study by eMarketer found that, while banking habits vary widely among generations, 'younger consumers were more likely to visit bank branches weekly or more.' Another study by LevLane found that less than 5% of Gen Z fully trust AI-driven banking features, compared to 21% of millennials. While we're seeing an uptick in branch openings, there are still fewer branches than there used to be. In Massachusetts, for example, there are still fewer branches than there were a decade ago (81,405 branches in 2014 vs 68,632 in 2024), reports CBS News. Regardless, it looks like we may not see the death of the bank branch any time soon. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-07-2025
- Business
- Yahoo
In the age of apps and online banking, banks are opening dozens of new branches in Massachusetts — here's why
In the era of mobile apps and digital banking, it's not surprising that several banks are shuttering some of their branches. But now, at least in some markets, a few banks are actually opening brand-new branches. An average of 1,646 branches have closed each year in the U.S. since 2018, according to an analysis of Federal Deposit Insurance Corp. data by Self Financial. California had the most closures, followed by Florida and Illinois. If branch closures were to continue at this rate, the report says there'd be no branches left in the U.S. by 2041. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The pace picked up in Q1 2025 with a total of 148 branch closures, according to S&P Global Market Intelligence data. That was led by U.S. Bancorp (reporting 50 branch closures) and Wells Fargo & Co. (reporting 23 branch closures). But, despite this overall decline, some banks are actually building new branches or renovating older ones. Indeed, the American Bankers Association says a 'counter trend' has emerged, 'gaining momentum over the past two years to where now many of the nation's largest banks have announced specific plans for widespread branch expansion.' And there's one state where we're seeing dozens of new branch openings. Here's why. Chase plans to open 50 new branches in Massachusetts by 2027, including small towns such as Sudbury (with less than 20,000 people) and Weston (with less than 12,000 people). This is part of a larger expansion the commercial bank announced last year, which involves opening more than 500 new branches and renovating 1,700 locations across the country. 'You don't see it in lower-income neighborhoods,' Eric Rosengren, former president of the Federal Reserve Bank of Boston, told CBS News. 'You see it in wealthy neighborhoods, because even a few wealthy individuals can provide a significant amount of income coming from the wealth management.' That's because many affluent customers still value face-to-face financial advice. Indeed, JPMorganChase is expanding its 'affluent' offering with 14 new J.P. Morgan Financial Centers across four states, for a total of 16 locations — with plans to double that by the end of next year. These centers, based in Massachusetts, California, Florida and New York, are designed to provide a 'uniquely tailored and high-touch experience' to high-net-worth clients. JPMorganChase isn't the only one expanding its offerings. 'Large regional and national banks, such as Chase, Bank of America, Fifth Third, PNC and Huntington, have all announced significant branch expansion efforts in recent years,' according to an industry insight by the American Bankers Association. Bank of America, for example, has plans to open more than 150 new branches across 60 markets by the end of 2027, including 40 this year. While 90% of Bank of America's client interactions take place through digital channels, its branches 'have adapted to focus on meeting spaces where clients can have in-depth conversations about their finances,' according to a release. Last year, about 10 million clients made appointments with its specialists in physical locations. Read more: You don't have to be a millionaire to gain access to . In fact, you can get started with as little as $10 — here's how Opening new branches could be a way for some banks to expand their wealth management offerings in new markets without having to acquire other banks. While Chase is targeting affluent markets, its expansion will also include entry into 'low-to-moderate income and rural communities with little access to traditional banking services,' according to a release. While Self Financial's report predicted that bank branches could become extinct by 2041, its analysis also found that 39% of respondents had the most trust in banks with physical branches. In some cases, physical branches are still very much a necessity. But banking deserts (neighborhoods with no nearby branches) are on the rise, according to the U.S. Bank Branch Closures and Banking Deserts **report. 'Despite the overall trend toward online banking, older, disabled and lower-income communities often rely on in-person banking. For people facing other barriers to banking services, having no bank branches nearby could limit opportunities to foster financial health and build wealth,' according to the report. It also points out that having a personal relationship with your local banker is important for loan and grant applications, fraud prevention and financial guidance. As well, many small businesses still rely on those personal relationships for financing applications. And, despite a common belief that younger generations do all their banking online, a few studies have found that Gen Z still likes to have branch access — even more so than millennials. One study by eMarketer found that, while banking habits vary widely among generations, 'younger consumers were more likely to visit bank branches weekly or more.' Another study by LevLane found that less than 5% of Gen Z fully trust AI-driven banking features, compared to 21% of millennials. While we're seeing an uptick in branch openings, there are still fewer branches than there used to be. In Massachusetts, for example, there are still fewer branches than there were a decade ago (81,405 branches in 2014 vs 68,632 in 2024), reports CBS News. Regardless, it looks like we may not see the death of the bank branch any time soon. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Forbes
25-06-2025
- Business
- Forbes
How In-Person Branches Will Evolve Alongside Digital Banking
Deep Varma is the chief technology officer at Alkami . getty How Americans conduct their banking has drastically changed with the advent of digital banking technologies. One significant shift, for instance, has been banks and credit unions rethinking the role of physical branches as more and more account holders make deposits, monitor spending and manage accounts through online portals and mobile applications. In fact, according to research by Cushman & Wakefield, the number of FDIC-insured branch offices has been declining since 2010, reaching record lows with an average yearly reduction of 1,555 branches by 2023. While some consumer demographics may continue to visit bank branches—16% of Baby Boomers continue to do so, according to American Bankers Association research conducted by Morning Consult—71% of account holders prefer mobile devices or online banking via a computer. With the number of devices connected to the internet also continuing to rise, financial institutions must continue to embrace digital channels to remain engaged with account holders. However, physical branches still play an important role in modern banking. They are instrumental to local communities and will continue to be key in ensuring personal relationships thrive. Also, some account holders, particularly those over 65—only 37% of whom use a mobile payment app—or those who require ancillary services like safe deposit boxes, will continue to look for local branch access. All this leads account holders to question what will remain in branches and what will transition to mobile banking in the coming years. In the long term, branches will continue to exist because they provide human interaction, but specific aspects of the banking experience will evolve. Seamless Omnichannel Experiences Even the most tech-savvy account holders may need to interact with their bank or credit union's branch for support and services. The current interconnected environment across other industries, such as entertainment and e-commerce, has established an expectation for similar seamless experiences across web, mobile and physical banking. Consumers are accustomed to shopping in stores, cross-checking competitor prices on their mobile phones, adding items to their carts and completing purchases from a home computer. This continuous process enables users to move across platforms while working through their customer journey. Omnichannel experiences in banking will also become like Netflix, where people can start a show at home, watch it on a plane and then complete it at home. This marriage of the digital and offline provides a seamless transition. The same should be true of banking experiences. An account holder may initiate a loan application online but visit their local branch to complete the process. That information should be seamlessly accessible via any channel, enabling them to return home or use a mobile device to review, finalize and submit the document. Evolving Security And Identity Verification As personal identification evolves, banks and credit unions will need to assess the security, verification and acceptance of digital IDs. According to the Information Technology & Innovation Foundation, digital IDs are increasingly being explored for their ability to streamline verification, add convenience and enhance security. Those financial institutions that can consider these types of alternate forms of identity verification may differentiate themselves, while physical or laggard onboarding processes could deter account holders from moving forward. Data As Differentiation Data management and monitoring remain crucial for financial institutions to give account holders the best individualized in-person and online experience. Data can help them personalize account holder experiences and enhance risk management. It can also help the mid- and back-office make some decisions faster. Banking system data is dynamic, continuously adapting to reflect consumer behavior and interactions. Account holders can conduct transactions from different locations via different platforms at varied frequencies and amounts. One of the most pressing challenges financial institutions face in adopting advanced digital technologies is evolving legacy infrastructure and unifying fragmented data systems. Sophisticated digital banking technology requires a cohesive data strategy that enables institutions to collect, analyze and act on information in real time across all channels. Moving away from siloed systems and toward scalable, cloud-native platforms is essential for supporting this shift and delivering the speed and flexibility today's account holders expect. For many financial institutions, human monitoring of these processes can lead to inefficiencies and accuracy issues. Embracing technology solutions—including AI for real-time analysis and centralized banking-specific platforms for data capture and consolidation—can help banks and credit unions make stronger business decisions to position themselves for future success. These systems can be used in tandem with in-branch services to streamline account holder interactions while powering online self-service options. Along the way, building internal data literacy, empowering teams with the proper training and fostering a culture of innovation are also critical to realizing the full potential of digital transformation. With the right combination of a digital sales and service platform and people, financial institutions can create seamless, personalized experiences while driving greater efficiency and long-term growth. By understanding how to integrate advanced digital banking technology, financial institutions can enhance account holder experiences, improve operational efficiency and redefine the role of branches in a digital-first world. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Finextra
11-06-2025
- Business
- Finextra
Industry associations highlight cybersecurity risks at US regulatory agencies
Four industry trade associations have called for significant reforms to how federal financial regulators handle sensitive data following a data breach at the Office of the Comproller of the Currency that exposed over 148,000 private correspondences containing sensitive supervisory information about US financial institutions. 0 In a letter addressed to Treasury Secretary Scott Bessent, The Bank Policy Institute, American Bankers Association, MFA and Sifma say that growing threats from hostile nation-states targeting US critical infrastructure serve as a reminder of the urgency to address vulnerabilities. 'Government agencies are increasingly the target of persistent and sophisticated nation-state attacks that could disrupt financial markets and our economy,' the organizations wrote. 'It is imperative that federal regulators recognize that they are equally a target of malicious actors and implement the same or substantially similar cybersecurity and incident response practices that they expect financial institutions to maintain.' Financial institutions are legally required to share sensitive, proprietary and non-public information with their regulators as part of the supervisory process. This information can range from capital and liquidity management to cybersecurity protocols. However, centralizing large amounts of data can create a prime target for illicit actors seeking to harm US economic security, says the organisations. They point out that over the past two years, both the Treasury Department and the OCC have suffered significant cyber incidents. At the OCC, hackers were at work inside its systems for over a year-and-a-half before the intrusion were discovered. Immediately after the breach was reported both JPMorgan Chase and Bank of New York Mellon scaled back electronic information sharing with the agency. To mitigate risk and prevent similar problems in the future, the groups are urging the Treasury to hold federal agencies to the same security and data protection standards as private companies. They want to limit data collection to only what is necessary and avoid centralisation of sensitive data, allowing companies to maintain control and access to their data. The letter states: 'As firms are required to share non-public, highly sensitive information with regulators as part of the supervisory process, compromises at regulatory agencies could expose institutions' vulnerabilities and business information to malicious actors, putting them at strategic disadvantage.'
