In a keynote speech at the ABA Annual Convention today, Treasury Secretary Janet Yellen unveiled a new National Strategy for Financial Inclusion focused on access to transaction accounts, safe and affordable credit, and savings and retirement opportunities. It also focuses on actions the federal government can take in its payment and support programs and enhancing the protection of consumers from illegal and predatory practices.
To reduce the number of unbanked Americans, the strategy highlighted the role of government in using government-to-consumer payments as a lever to encourage transaction account openings and of the private sector in offering and marketing Bank On-certified accounts. The strategy also emphasizes the role of alternative data and Special Purpose Credit Programs to expand financial inclusion. In her speech, Yellen highlighted the role of bankers — specifically highlighting Reading Cooperative Bank, led by past ABA Chair Julieann Thurlow — for their role in innovation in financial inclusion.
The strategy “provides a roadmap for the public, private and nonprofit sectors to promote the ability of all communities to fully participate in our robust economy and financial system,” Yellen said. “The strategy benefited from a yearlong process to gather input, including sustained engagement with ABA staff and members, other government agencies, consumer advocates and many others.”
