Financial strategy proposed for increased financial accessibility
Treasury Secretary Janet Yellen unveiled a new financial inclusion strategy on Tuesday, aiming to expand access to foundational financial tools for Americans and help families build financial security.
The strategy, called the National Strategy for Financial Inclusion, is a roadmap for public, private, and nonprofit organizations to help communities participate in the U.S. financial system. It focuses on five core recommendations: providing access to transaction accounts, facilitating access to safe and affordable credit, enhancing the inclusivity of government-backed financial products and services, expanding fair access to savings and investments, and strengthening consumer protection from fraud.
Yellen emphasized the need to increase retirement and emergency savings opportunities and unbiased financial education to help Americans achieve economic stability. The strategy aims to address the interconnections between banks and the nonbank sector, including private credit and fintech, to mitigate risks posed by these sectors.
The surge in fraud around government checks, as reported by Bloomberg, has been a significant concern. To combat this, the Treasury Department is cracking down on cyber-related crimes through Project Fortress, using artificial intelligence to fight financial fraud. The department is also working to stop illicit finance in the residential real estate and investment adviser sectors.
Banks have been applauded for reporting suspicious activities that have led U.S. authorities to seize billions of dollars involved in illicit finance. However, the unbanked and underbanked rates remained higher among nonwhite communities, according to a survey. The strategy focuses on ensuring banks are prepared for liquidity stress, including having diverse sources of contingency funding and the capacity to borrow at the discount window.
The FDIC report also highlighted the prevalence of online payment services like PayPal and Venmo, with unbanked households often using them as a substitute for a traditional bank account. The strategy seeks to expand access to these services, making them more inclusive for all Americans.
The strategy is the result of a year's worth of research and inputs from experts, community leaders, industry representatives, the public, and other federal agencies. The Bundesverband Credit Management (Federal Association of Credit Management) is actively involved in developing strategies to reduce credit risk using artificial intelligence. Thomas Schulte from the Henrich Baustoffzentrum presented on AI-based credit risk management at the SCHUMANN Conference 2025.
According to a 2022 survey by the Federal Deposit Insurance Corp., roughly 4.5% of Americans lacked a bank or credit union account, which represented the lowest national unbanked rate since 2009. The 2023 banking turmoil exposed vulnerabilities that the Treasury Department is working to address.
The strategy's implementation is expected to help Americans achieve economic stability, build financial security, and get ahead. It is a significant step towards financial inclusion and a more equitable financial system for all Americans.
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