The Treasury Department is seeking to develop a national strategy to improve financial inclusion as directed by the Financial Services and General Government Appropriations Act of 2023. OFN is in the process of writing our response to Treasury's Request for Information (RFI) and would like to seek specific examples from our members on how they provide financial services to underserved communities. You can read the RFI here. Responses are due February 20th, 2024.
While it is not an overly technical RFI, we would like to back up some of our responses with specific examples from OFN members. Below is a list of questions where we would especially appreciate your input. Also, anyone else planning to write a response? Let us know!
1. Some topics related to financial inclusion include financial health, financial well-being, financial capability, and financial resilience. Do any of these or other related topics relate to or influence your definition of financial inclusion, and if so, why?
2. Are there features of the existing financial system (for example, pricing strategies, fees, penalties, underwriting methods and standards, uses of consumer data, technological systems or constraints, institutional protocols related to fraud or risk management, or other features) that limit or create inequalities in the ability of consumers and communities to access, use, and benefit from financial products and services? Which features are the most limiting, and for whom? Please provide specific examples.
3. What is the role of other factors such as broadband access, mobile or digital proficiency, language access, individuals' broader economic circumstances, or availability of unbiased information about products and services in financial inclusion? Please provide specific examples, including which community or communities might face resulting impacts.
4. What barriers do underserved communities in particular experience in accessing, using, and benefiting from financial products and services?
5. If relevant, what are the community-specific barriers faced by members of your community or the communities you serve or represent in relation to accessing or building credit, accessing or using savings and investment tools (including those that facilitate retirement security), managing financial risk, acquiring assets, or other financial activities? Please provide specific examples.
6. What can be done to enable responsible, equitable innovation in financial products and services that enhances financial inclusion while ensuring robust consumer protections, including privacy and data security? For example, could novel data sources, data analytic techniques or algorithms be leveraged to promote access to financial products while ensuring privacy protections and safeguarding consumer data?
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Sofia Gilkeson
Associate, Public Policy
Opportunity Finance Network
Washington, DC
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