U.S. Reps. Young Kim (R-CA) and David Scott (D-GA) introduced legislation that seeks to provide greater access to financial services for the underbanked and in underserved communities.
The Financial Inclusion in Banking Act (H.R. 4067) directs the Consumer Financial Protection Bureau (CFPB) to improve consumer access to banking. Specifically, it directs the CFPB to focus its attention on finding solutions for underbanked and underserved communities and improve coordination between federal agencies, trade associations, and financial institutions
“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,” Kim said. “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.”
Specifically, the Financial Inclusion in Banking Act requires the CFPB to lead a coordinated effort with banking trade associations, consumer groups, civil rights groups and other federal agencies to expand access to banking and identify strategies to increase financial education. It also directs the CFPB to submit a report to Congress every two years on legislative and regulatory recommendations to promote participation in the financial system.
“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 said.