U.S. Credit Card Defaults Soar to Highest Level in 14 Years Experts are sounding the alarm over a new report indicating credit card loan defaults soared this year, warning the dam is about to break on Americans’ record-high consumer debt. During the first nine months of 2024, lenders wrote off more than $46 billion in seriously delinquent credit card loans, according to a report from the Financial Times citing data analyzed by BankRegData. That’s an increase of 50% from the first three quarters of 2023, and the highest since 2010. “High-income households are fine, but the bottom third of US…

OBSERVATIONS FROM THE FINTECH SNARK TANK Three things are certain in life: death, taxes, and fraud. Add a new certainty for 2025: A new director of the Consumer Financial Protection Bureau (CFPB). Whoever the new director is (I’m willing to step in and step up, Mr. President), that person could help truly protect the financial lives of Americans by refocusing the bureau on fraud, scams, and cybersecurity. The Fraud, Scams, and Cybersecurity Problem According to a new study from Cornerstone Advisors, nearly 100 million Americans believe fraud, scams, and cybersecurity is the #1 issue the US government should focus on…

Update, Dec. 27, 2024: This story, originally published Dec. 25 now includes a breakdown of the know your customer attack threat methodology that the newly discovered dark web facial identity resource brings to the identity fraud table along with mitigation against the threat and an additional example of how banking biometrics can be bypassed by determined attackers. A dark web criminal operation that appears to have been farming facial ID images along with the genuine identity documents that accompany them has been unmasked, if you’ll pardon the pun, by threat intelligence researchers. Here’s everything you need to know about this…

CFPB Calls on Other Enforcement Agencies to Address Bait-and-Switch Credit Card Rewards Practices The CFPB issued a circular to other law enforcement agencies warning that some credit card companies operating rewards programs may be breaking the law. The CFPB’s circular highlighted various ways that credit card companies could violate federal law: Devaluing of Earned Rewards. Hiding the Conditions for Earning or Keeping Rewards. Fine print disclaimers and vague terms buried in a contract may conflict with prominent promotional language highlighting the rewards that consumers can earn. Revoking, canceling, or preventing consumers from redeeming rewards based on such conditions may also…

Additional information about bank bonuses: checking account bonuses, bank sign-up bonuses and moreWhat does the Fed rate announcement mean for bank account bonuses?In November 2024, the Federal Reserve announced it would lower the federal funds rate (the rate which commercial banks use to borrow and lend money to one another). Previously, the Fed changed the rate in September 2024, which was the first change that year and a decrease. The Fed increased the rate four times in 2023 and seven times in 2022. The changes haven’t directly affected bank bonuses, but it could still be a good time to open…

Our Nerds say:“When choosing a savings account, a high rate isn’t the only thing you’ll want to consider. You’ll want to see whether there are any monthly fees or withdrawal limits. “It’s also important to pick an account that meets your overall banking needs. If you want your checking and savings accounts to be at the same bank, for example, you’ll want to go with an institution that offers both checking and high-yield savings.”- Margarette Burnette, NerdWallet banking writerBest high-yield savings accounts: full list of editorial picksWhen selecting the best high-yield savings accounts, NerdWallet uses multiple data points, including monthly…

If you kept money in a high-yield savings account this year, congratulations. Thanks to elevated interest rates, you probably enjoyed strong returns on those funds. And if you didn’t, don’t despair: Savings rates should remain solid through at least the beginning of 2025. As we head into the new year, here’s a recap of what happened with savings rates in 2024, what it means for your wallet and how to prepare for whatever changes may occur in 2025.A high-yield savings advantageThe Federal Reserve’s federal funds rate remained relatively high this year, though there were some rate decreases in the second…

Our Nerds say:“When choosing a savings account, a high rate isn’t the only thing you’ll want to consider. You’ll want to see whether there are any monthly fees or withdrawal limits. “It’s also important to pick an account that meets your overall banking needs. If you want your checking and savings accounts to be at the same bank, for example, you’ll want to go with an institution that offers both checking and high-yield savings.”- Margarette Burnette, NerdWallet banking writerBest high-yield savings accounts: full list of editorial picksWhen selecting the best high-yield savings accounts, NerdWallet uses multiple data points, including monthly…

It wasn’t that long ago that financial services executives and board members got most of the knowledge they needed from years of on-the-job experience. Today, familiarity with the way things used to be gets you only so far. The pace and scale of the disruption that’s shaking up the industry is obviously the main reason. Then there’s the fact that technology—not everyone’s forte—has become such a vital ingredient. But there’s another crucial issue, and it’s one that’s notoriously difficult to manage: the human factor. It has never been more important for financial services firms to have a flexible and holistic…

As we prepare to close out 2024, it’s clear the year brought both challenges and opportunities for the economy and the banking industry. We are certainly ending 2024 in a very different place than where we began. From shifting regulatory environments to technology advancements and persistent housing shortages, the themes of this year have set the stage for what’s to come in 2025. While uncertainty always looms in economic forecasts, the opportunities ahead are vast—requiring adaptability, strategic thinking, and a steady focus on growth. As we look forward, it’s crucial to approach the year ahead one quarter at a time.…