On April 19, 2022, the CFPB issued a report on the challenges faced by Americans in rural communities. The report reveals that many of these communities lack access to physical bank branches, are more likely to seek credit from nonbanks, and are heavily affected by medical bills.
The report highlights the CFPB’s research on rural consumers as well as contextual information from other agencies on the consumer finance challenges faced by rural communities. According to the CFPB, agriculture and small businesses are the main pillars of rural economies, thus access to credit for farms and small businesses is essential to the economic health of rural communities and rural employment. The report provides a summary of economic challenges facing rural people and communities. Its key findings include:
Rural Americans depend on physical bank branches and smaller banks;
Rural Americans are less likely to have a credit history and more likely to use non-bank credit, resulting in rural consumers paying more for credit; and
Unpaid medical bills are affecting access to credit, housing, and employment.
To address these challenges, the CFPB has launched an initiative where it will:
Dig deeper to understand the unique needs of rural communities by analyzing data and developing effective ways for the people living in those communities to file complaints;
Hear directly from rural communities and the financial institutions that serve them; and
Work with federal partners to meet the needs of rural communities.
Read the CFPB’s full press release here.
The report, Data Spotlight: Challenges in Rural Banking Access, can be found here.