New York City's Spring Bank is putting new innovations in behavioral economics into practice to help low-income customers improve their finances. Recent scholarship in the field focuses on how incentives can be structured to "nudge" people toward good decisions. Spring Bank's Borrow-and-Save loan puts that concept into practice. It encourages savings by requiring borrowers to put 25% of the loan amount into a savings account that can only be accessed at the end of the loan term. A customer who borrows $500 would receive $375. The other $125 would be set aside as savings. "... Read more

The CDFI Fund is soliciting public comment on the Bank Enterprise Award Program Application. The CDFI fund has asked for specific comment on the practical utility of data being collected in the application and how they can enhance the quality of that information. The Fund also seeks input on the burden of assembling the data and suggestions for easing the burden, including through technology. In addition, the Fund has requested estimates of costs of operation required to provide the requested information. All comments must be submitted by February 23, 2015.

Southern Bancorp of Arkadelphia, Ark. is buying Bank of Bolivar County, a small $15.9 million-asset Mississippi Delta bank. Bank of Bolivar County has two locations: one full-service office and one limited service branch. These will build on Southern Bancorp Bank's presence in Bolivar County, where it currently operates one branch. The acquisition marks a step forward for Southern Bancorp's efforts to increase the availability of capital to Mississippi residents; the bank is also in the process of adding its third branch in Hot Springs, Miss.

The Senate has adjourned for the year without acting on a bill that would require one of the seven members of the Fed’s board of governors to be a community banker. The Senate had initially approved the measure, inserted into a bill passed by the House that extended the federal terrorism insurance program. But the Senate was unable to pass the final bill before adjourning. Sen. David Vitter (R., La.) proposed the legislation, saying a person with small-bank experience would act as a balance to board members from academic backgrounds. He plans to resurrect the proposal as a standalone bill... Read more

OneUnited Bank will be providing a $10,000 gift to jump start the Employ Miami-Dade initiative. The goal of the initiative is to centralize resources for locals to get workplace readiness training and jobs. Employ Miami-Dade will first target the construction industry, helping local workers get hired by the construction firms which are tackling the county's current building boom. Trainees who qualify will receive a bi-weekly stipend of $250, initially funded by OneUnited's $10,000 gift. OneUnited's commitment to the initiative will extend long-term; the bank will provide... Read more

Community Bank of the Bay is bucking the trend of fewer branches, moving its Danville, California office to a larger location and adding a loan office in San Mateo. The bank was initially advised by its financial backers that a branch wasn't needed as banks increasingly opt for online- and mobile-banking options. But along the way, they had a change of heart. "A branch is a bit of a security blanket. There are those 'emergency times' when you need to run into a bank," said CEO Bill Keller, citing the need to get a cashier's check or explore loan options to complete a deal... Read more

CBW (formerly The Citizens Bank of Weir) has been rebuilt to offer high-tech services not available at even the largest banks. Former Google employee Suresh Ramamurthi and his wife, Suchitra Padmanabhan, bought the tiny bank in 2009. Working with a team of software engineers, they have used it as a testing ground for a range of innovative financial services. Most promising is an instant payment system similar to wire payments — but much cheaper. The transfers rely on a custom built back-end that instantly rates the risk of transactions using 20 to 40 factors, including a customer’s... Read more

A new study finds strong revenue growth among payday lenders, auto lenders and other providers of alternative financial services to underserved customers. The financially underserved market revenues increased from $96 billion in 2012 to $103 billion in 2013, based on consumer usage volume of $1.3 trillion in financial products and services. Among the products examined, revenue growth was highest among subprime auto leases, prepaid cards and title loans. The results are a continuation of revenue growth trends in the industry, which has seen an average annual growth rate of 6% since 2009.... Read more

Fannie Mae and Freddie Mac will start making payments that could total hundreds of millions of dollars annually into a fund for affordable housing. Under the new policy announced by Federal Housing Finance Agency Director Melvin L. Watt, the GSEs will set aside a portion of their revenue for the National Affordable Housing Trust Fund. The fund is the only source of U.S. housing money earmarked for the lowest-income families and has been empty since Congress created it in 2008. Watt’s predecessors said the precarious financial condition of the companies prevented them from making payments.... Read more