Treasury Department to Develop Financial Inclusion Strategy
The Treasury Department announced today that it will be developing a new financial inclusion strategy aimed at expanding access to and usage of financial services for underserved communities. This initiative comes at a time when many Americans are facing economic hardships due to the ongoing COVID-19 pandemic, highlighting the need for greater financial inclusion and support.
According to a recent report by the Federal Deposit Insurance Corporation (FDIC), approximately 5.4% of households in the United States are unbanked, meaning they do not have a checking or savings account. Additionally, 18.7% of households are considered underbanked, meaning they have an account but also rely on alternative financial services like payday loans and check cashing services.
The Treasury Department’s new financial inclusion strategy will focus on addressing the barriers that prevent individuals from accessing traditional banking services, such as lack of affordable banking options, limited access to physical bank branches, and inadequate financial education. The goal of the strategy is to increase financial stability and security for all Americans, regardless of their income level or background.
Key components of the Treasury Department’s financial inclusion strategy will include partnerships with banks and credit unions to expand access to low-cost banking products, increased funding for financial literacy programs, and the promotion of new technologies like mobile banking apps and digital wallets. The department will also work with community organizations and government agencies to ensure that underserved communities have the resources and support they need to achieve financial stability.
In a statement, Treasury Secretary Janet Yellen emphasized the importance of financial inclusion in promoting economic opportunity and reducing inequality. “Access to basic financial services is essential for individuals and families to build a secure future,” Yellen said. “We are committed to working with our partners to develop a comprehensive strategy that will help all Americans achieve their financial goals.”
The Treasury Department’s financial inclusion strategy is expected to be unveiled later this year, with implementation beginning in 2022. The department is seeking input from a wide range of stakeholders, including financial institutions, consumer advocates, and community organizations, to ensure that the strategy meets the needs of all Americans.
Overall, the development of a new financial inclusion strategy by the Treasury Department is a positive step towards addressing the systemic barriers that prevent many Americans from accessing the financial services they need to thrive. By expanding access to affordable banking options, promoting financial literacy, and leveraging new technologies, the department hopes to create a more inclusive and equitable financial system for all.