The U.S. Department of the Treasury recently unveiled its first national strategy for financial inclusion. Treasury Secretary Janet Yellen announced the strategy on Oct. 29 during the American Bankers Association annual convention in New York City.
The plan identifies goals and recommendations for the banking industry, policymakers, employers and community groups to increase consumer access to financial products and services.
Treasury listed several program goals:
- Promote access to transaction accounts that meet the needs of consumers.
- Improve access to affordable and safe credit.
- Expand equitable access to savings and instruments.
- Make financial products and services provided or backed by the government more inclusive.
- Protect consumers from predatory and illegal practices.
Congress requested the strategy be formed last year. According to the Treasury, the United States has “significant disparities in how different populations interact with and benefit from financial products and services.”
Six percent of adults were unbanked last year, unchanged from 2022, according to the Federal Reserve. Unbanked rates were far higher among low-income adults: Twenty-three percent with income under $25,000 were unbanked compared with only 1 percent of adults with $100,000 or more of income.
“Access to financial products and services is essential to creating opportunity for all Americans,” said Secretary of the Treasury Janet Yellen. “For the first time, Treasury’s strategy provides a national roadmap to expand access to foundational financial tools like credit and investments that are key to building wealth. Implementing these recommendations will help more families build financial security and get ahead.”