Policy Spotlight: It’s Time for a National Financial Inclusion Strategy

Aspen Institute leads a cross-sector coalition advocating for a Presidential Commission to create a national, interagency, financial inclusion strategy.

The Aspen Institute along with a cross-sector coalition of leading businesses, organizations, and academics are calling on the Biden Administration to establish a Presidential Commission to create a national, interagency, financial inclusion strategy:

“For decades, exclusion within our financial systems — particularly for people of color and those living in rural communities — has made it difficult for Americans to achieve financial security. According to the latest data from the FDIC, more than 7 million households in the US remain unbanked, with Black, Hispanic, American Indian or Alaska Native households being disproportionately excluded.”

In a letter addressed to Secretary of the Treasury Janet Yellen and Deputy Secretary Adeyemo, the authors suggest that now is “a historic moment of opportunity to reshape our economy and ensure that everyone in the US benefits from the economic recovery.”

It’s a moment that’s resonating throughout the halls of government but as importantly throughout the boardrooms and executive suites of financial institutions, too. A recent survey of banks and financial institutions finds 81% of them are planning to drive financial inclusion this year by setting “metrics and targets to track and measure the impact of our financial inclusion program on the business.” Notably, 50% plan to “[c]reate a dedicated financial inclusion function and new dedicated roles,” to drive financial inclusion within their institutions.

The brightening spotlight on financial inclusion at the highest levels of business, government, and philanthropy (hi) is good news for the majority of workers across the country who are unbanked or simply struggling to get by without a “reasonable shot” at financial security, who are forced to use financial products and services that cost low-income workers disproportionately, and often just plain, more than higher-income colleagues with access to better options. As Brookings Institution puts it: Being poor is expensive.

Let us seize this moment. We echo the letter’s call. “It is time to bring together actors across sectors to establish a shared vision for how policy, products, and business models can create the inclusive financial systems required to generate an inclusive and sustainable economy.” Join us.

Note: TrustPlus is a social enterprise of Neighborhood Trust Financial Partners, a signatory to the letter calling for a National Financial Inclusion Strategy.