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Today, Congressman David Scott (GA-13) and Congresswoman Young Kim (CA-40), members on the House Financial Services Committee, introduced bipartisan legislation to address systemic barriers in our nation’s traditional banking sector.

The Financial Inclusion in Banking Act would redirect the Consumer Financial Protection Bureau’s Office of Community Affairs to focus its attention on finding solutions for unbanked and underbanked populations in underserved communities. More importantly, the bill would promote stronger coordination between federal agencies, trade associations, and financial institutions to improve consumer access to banking.

“It is expensive to be unbanked or underbanked in the United States. Far too many Americans are forced to pay astronomically high fees for everyday services like cashing a check or transferring funds. Fees often add up to hundreds of dollars each year,” said Congressman Scott. “In order to expand banking services and close the wealth gap, it is vital to work with a broad and diverse group of stakeholders. The Financial Inclusion in Banking Act will accelerate the access of unbanked and underbanked communities to affordable mainstream accounts and expand access to more low-cost banking and alternative financial products.” Scott concluded.

“All Americans should be able to access the tools needed to achieve their dream. As an immigrant and small business owner, I have seen firsthand the challenges to accessing capital and knowing what resources are available,” said Rep. Young Kim. “I’m proud to co-lead this bipartisan bill to help underserved communities access financial opportunities. As co-chair of the Financial Literacy and Wealth Creation Caucus, I’ll keep fighting to ensure all Americans can grow their wealth, succeed, and achieve their dream.”

The Financial Inclusion in Banking Act would redirect the CFPB’s Office of Community Affairs to work alongside banks, minority depository institutions, fintech companies and  consumer groups, among others, to:  

·       Conduct research on barriers to financial inclusion and identify hurdles under- and un-banked Americans face when maintaining a sustainable relationship with banks;

·       Identify best practices to increase participation of underbanked and unbanked consumers in the traditional banking sector;

·       Develop strategies to improve financial education for underserved consumers; and

·       Submit a report to Congress highlighting legislative and regulatory recommendations to promote participation in the traditional banking system.

Full text can be viewed here.

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