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WASHINGTON D.C. - Today, Rep. David Scott (GA-13) and Rep. Young Kim (CA-40), both senior members of the House Financial Services Committee, introduced bipartisan legislation to address systemic entry barriers into our nation’s traditional banking sector.

The Financial Inclusion in Banking Act directs the Office of Community Affairs inside the Consumer Financial Protection Bureau (CFPB) to focus attention on finding solutions for unbanked and underbanked populations in underserved communities. More importantly, the bill promotes stronger coordination between federal agencies, trade associations, and financial institutions to improve consumer access to banking.

“Every American deserves equal access to the financial tools and services that are essential for stability and opportunity. Today, millions of our fellow citizens remain unbanked or underbanked—lacking access to basic banking services like checking accounts, credit, and affordable loans,” said Rep. David Scott. Without access to safe and affordable financial services, individuals are often forced to rely on high-fee alternatives such as payday lenders or check-cashing services. The Financial Inclusion in Banking Act would provide significant relief for consumers who are forced to rely on these predatory options that drain hard-earned incomes and limit long-term financial growth. It's not just a personal issue—it’s an economic and moral one that affects the health of our communities and the strength of our economy.”

"A an immigrant and small business owner, I’ve personally faced barriers to accessing capital and understanding what financial tools are available,” said Rep. Young Kim. “Every American deserves the opportunity to achieve their dream, and that starts with access to the right financial tools. I’m proud to co-lead this bipartisan effort to bridge the information gap and expand access to financial opportunities for underserved communities. I will continue fighting to ensure that all Americans have the chance to build wealth and succeed."

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 new and innovative 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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