Banks Focus on Digital, Inclusion, and Climate Risks

Banks are shifting focus toward digital transformation and inclusion, with Eastern Bank in Boston aiming to raise up to $1.7 billion for technology investments and Bank of America making commitments to address needs in minority communities. Minority-owned businesses continue to face difficulties accessing loans, prompting demands for better demographic transparency in lending processes. Regulatory updates include the Federal Reserve revising credit facilities for midsize firms and considering additional stress tests due to the pandemic. The industry is also experiencing significant cost-cutting and workforce reductions, highlighted by job cuts at HSBC and Wells Fargo, and a broader shift to digital channels. Growing emphasis on climate-related financial risks has led to calls for regulators to stress test banks’ preparedness for climate threats. Ongoing debates in Washington center on regulatory relief, capital requirements, and the future of fintech charters, with particular attention to commercial real estate lending.