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April 14
Fifth Third Bancorp (FITB) isn't giving up on the small-dollar loan market, Chief Executive Kevin Kabat said Thursday.
Fifth Third this week
"We made the decision to move away but that doesn't change the consumer demand for what I would term the small-dollar loan need," Kabat said. "We absolutely think that demand will continue and is real and is significant."
Regulators' recent actions are making it tougher for banks to stay in that market. The Consumer Financial Protection Bureau is
Meanwhile, the
Capital One Financial (COF) and Wells Fargo (WFC) are among the other banks, in addition to Fifth Third, that have ended relationships with some or all of their customers in payday lending, check cashing or other alternative banking services.
If regulators drive banks out of all segments of the market for small-dollar credit, other companies will fill the void, Kabat said.
"[The demand] will get satisfied," Kabat said. "There are nonbanking entities that will satisfy that, and we don't think that's a positive for the consumer in the long run."
Kabat was not specific about the types of products or services Fifth Third is considering. But the company is studying the issue, he said.
"We've got teams working on it to see if there's something substantial [we can offer]," Kabat said.