“How should financial regulators shape their response to the COVID-19 pandemic in overseeing microfinance institutions (MFIs)? What factors should they consider to help poor people and micro- and small enterprises survive the crisis?”
“New York, long the hub of the financial world and an early epicenter of the COVID-19 outbreak, is looking to innovative financial technologies as one source to help its pandemic-battered economy.”
FinRegLab in the News
Pandemic Lending Pushes Community Banks Toward Fintech Fixes
news.bloomberglaw.com
“A federal stimulus program to combat the recent economic downturn is pushing more community banks to embrace financial technology partnerships.”
FinRegLab in the News
Study Suggests Cash Flow Data Does Not Discriminate in Lending Decisions
www.spglobal.com
“Cash flow data can predict the credit risk that individual borrowers pose without discriminating against protected groups, according to recent research.”
“Roughly a fifth of U.S. consumers lack credit history data, she says, which focuses on certain types of credit and expenses. The data is also a lagging indicator since it’s focused on the customer’s financial history.”
“cash-flow data – such as records of transactions in and out of consumers’ deposit and card accounts – can improve risk prediction because it evidences how applicants manage their finances.”
FinRegLab in the News
How to Protect Your Credit Score During the Coronavirus Pandemic
www.consumerreports.org
“Many companies report to credit bureaus in batches, she says, and accounts that are 30 days delinquent typically get reported about a month after the bills were due. That means that many payments missed in the early phases of the COVID-19 crisis are likely to hit the credit agencies very soon.”
Publications
Disaster-Related Credit Reporting Options
This Research Brief analyzes the current options under consideration for addressing concerns that declining credit scores could make it harder for consumers and small businesses to access the credit they need to ride out and rebuild from the pandemic, as well as providing related historical and market context.