The Office of the Comptroller of the Currency today released a report detailing ways that banks can promote the financial health of their customers. The voluntary recommendations are neither proposed regulations nor supervisory guidance. Instead, they are meant to be a starting point for the banking sector, according to Acting Comptroller of the Currency Michael Hsu.
“I believe we can do better and truly put consumers front and center by measuring their financial health and supporting their efforts to improve it,” Hsu said during a speech at a financial health conference in Chicago.
The report defines financial health as stability in day-to-day finances, resilience to withstand and recover from financial shocks, and security for the future. Hsu said banks can promote financial health by better aligning their product offerings to meet customer needs; by enhancing their customer relationships through offerings such as helping depositors pay their bills on time; and by supporting the mental well-being of their customers and communities. The report makes several specific recommendations, such as offering low- or no-cost transaction accounts, including Bank On accounts. However, it also calls for banks to eliminate fees for overdraft services.
