Building smarter campaigns through collaboration, documentation, and governance
Introduction
Financial institutions have more flexibility in how they approach marketing under the CFPB’s Regulation B Subpart A final rule, but that flexibility comes with new expectations.
In Wolters Kluwer’s Fair lending in focus: Aligning marketing and compliance for sustainable growth webinar, industry leaders discussed the rule’s objectives and what they mean for marketing teams planning future campaigns.
The final rule clarifies the boundaries around marketing and advertising activities. Understanding the three primary objectives behind the update can help institutions make more informed decisions while maintaining strong fair lending practices.
1. Provide more flexibility for targeted marketing
One of the most significant changes is the elimination of disparate impact liability for targeted advertising under Regulation B.
Under the final rule, marketing strategies are evaluated based on disparate treatment and intentional proxy discrimination rather than unintended outcomes alone.
This creates more room for audience-specific campaigns.
Targeting a particular audience does not automatically suggest that other audiences have been discouraged. For example, an advertisement promoting products for veteran-owned small businesses does not inherently discourage women-owned or minority-owned businesses simply because they are not referenced.
The added flexibility allows marketers to tailor campaigns while reinforcing the importance of thoughtful audience selection and documented decision-making.
What this means for marketers: Targeted campaigns can support business goals when audience selection is based on legitimate strategies and decisions can be clearly explained.
2. Shift the focus toward intent and documentation
The final rule narrows the discouragement standard by requiring evidence that a creditor intentionally communicated a discriminatory exclusion.
As a result, marketing decisions should be supported by clear business rationale and documentation. Campaign design, audience selection, geographic targeting, and creative strategy should reflect intentional decisions that can be explained if questions arise.
Early collaboration between marketing and compliance can help teams identify concerns sooner, reduce revisions, and create more efficient review processes. Defined roles, responsibilities, and approval workflows can further support consistency.
What this means for marketers: Involving compliance early can help create more efficient campaigns and stronger documentation.
3. Recognize that flexibility still has boundaries
While the final rule expands opportunities in some areas, it also establishes important limits.
For-profit Special Purpose Credit Programs can no longer use characteristics such as race, color, national origin, or sex as eligibility criteria. Marketing for these programs must instead rely on permissible factors, such as geography.
Institutions must also continue to consider other fair lending requirements, including the Fair Housing Act, applicable state laws, and ongoing developments that could affect implementation.
Strong governance, documentation, and oversight remain essential as institutions apply the additional flexibility provided by the rule.
What this means for marketers: Greater flexibility still requires thoughtful governance and awareness of the broader fair lending landscape.
Practical considerations for marketing teams
The Regulation B updates create opportunities for more targeted marketing, but effective implementation depends on disciplined execution.
Marketing teams should consider:
- Avoiding protected class variables or proxies when developing audiences
- Using thoughtful geographic targeting strategies
- Applying data-backed approaches to support campaign decisions
- Evaluating outcomes across the full campaign funnel
- Comparing campaign results against baseline applicant demographics to identify unexpected results
Strong collaboration between marketing and compliance, supported by clear documentation and defined processes, can help institutions balance growth objectives with fair lending expectations.
Watch Fair lending in focus: Aligning marketing and compliance for sustainable growth to explore more about the regulatory changes shaping marketing strategy and oversight.