Since its inception in the 1990s, the payday lending industry has grown at an astonishing pace. Currently, there are about 22,000 payday lending locations — more than two for every Starbucks — that originate an estimated $27 billion in annual loan volume.

But payday lenders may soon face some petition. A few of the largest consumer banks in America are considering goingto market with new small-dollar installment loan products, reports the American Banker.

The Consumer Financial Protection Bureau (CFPB), the U.S. government’s consumer protection agency, isconsidering proposing rulesthat would end payday debt traps by requiring lenders to take steps to make sure consumers can repay their loans. One of the proposals is to exempt lenders from certain requirements if the amount the consumer is required to pay each month is no more than 5 percent of the consumer’s gross monthly e. According to American Banker:

[T]he banks said if the 5% exemption is part of the proposal, they believe they can offer a product that would satisfy regulators. A mockup of what the product could look like would be a $500 five-month loan for a borrower with an annual e of $30,000 and monthly payments of $125 (or 5% of the borrower’s $2,500 average monthly e). After assuming a 6% loss rate (which would parable to similar installment loans currently on the market), automation expenses and servicing fees, a bank could net roughly $70 while the borrower would be on the hook for $125. The average cost of a similar payday loan product would be closer to $750.

“The 5% payment option is the only part of the CFPB proposal that could save millions of borrowers billions of dollars,” said Nick Bourke, director of the small-dollar loans project at the Pew Charitable Trusts. “It would enhance underwriting while pliance costs by capping the monthly payment at 5% of the borrower’s e with a term up to six months.”

The banks wouldn’t make much money off of these types of loans, but as the article notes, they would increase goodwill with munities and potentially entice under-banked consumers to use other banking services and products.

The CFPB is set to announce the beginning of the payday lending rulemaking process next Thursday, June 2nd at a field hearing in Kansas City.