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The US Department of the Treasury has unveiled its National Strategy for Financial Inclusion, aiming to bolster nationwide access to financial services, including through payments that better serve underserved communities.
Requested by the US Congress in 2023, the strategy reflects extensive input from a variety of stakeholders in the financial services ecosystem.
These include representatives of both payments and banking and of the underserved communities Congress had in mind when the strategy was commissioned.
“Access to financial products and services is essential to creating opportunity for all Americans,” said Janet L. Yellen, secretary of the Treasury.
“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.”
Although the US financial infrastructure is resilient, the Treasury acknowledges that significant disparities remain in accessibility, particularly for minority and underserved communities.
By promoting equitable financial access, the strategy seeks to address this imbalance, supporting wealth-building and resilience across diverse communities.
Key priorities
Promoting instant payments as a tool to enhance financial stability is one of the objectives highlighted by the Treasury, which suggests that more uptake could reduce consumer reliance on costly financial alternatives such as payday loans and overdrafts.
The strategy says the government is committed to fostering this shift by supporting real-time payment initiatives such as the FedNow Service, launched by the Federal Reserve in 2023.
Another priority is enhancing the accessibility of transaction (also known as payment) accounts to encourage widespread usage, with an emphasis on accounts that are affordable, secure and accessible to individuals with diverse needs.
The US government’s Bank On initiative, for example, promotes bank and credit union accounts without high fees or minimum balances, encouraging more individuals to engage with the financial system.
The strategy also highlights the importance of digital identity tools and inclusive account policies.
For example, financial institutions are encouraged in the strategy to simplify identity verification processes, especially for vulnerable populations, including homeless individuals, immigrants and victims of domestic violence.
According to the strategy, this approach may involve accepting various forms of ID and exploring digital identification solutions to improve account access.
The document also echoes the approaches of other regulators worldwide, such as in the EU and UK, by stating that public-private collaboration is essential to overcoming banking deserts, especially in rural and underserved areas.
The Treasury has said that efforts such as mobile banking programmes and strategic broadband investments aim to bring financial services to more remote communities.
Commenting on the development, national economic advisor Lael Brainard welcomed the move.
“This financial inclusion roadmap marks a major step forward in charting a clear path to improving access to banking, credit, savings, and other financial products in underserved communities, to ensure every American has the financial tools to build wealth.”
