The "Financial Inclusion in Banking Act of 2025" establishes an Office of Community Affairs to research and address barriers preventing under-banked, un-banked, and underserved consumers from accessing banking services, and to report findings and recommendations to Congress.
David Scott
Representative
GA-13
The "Financial Inclusion in Banking Act of 2025" establishes an Office of Community Affairs to research and address the reasons why individuals and households are under-banked or un-banked. This office will coordinate with other agencies, develop financial education strategies, and report to Congress every two years on ways to improve banking participation among underserved consumers. The goal is to identify barriers and recommend solutions to enhance financial inclusion in the banking system.
New Bill Creates CFPB Office to Tackle Barriers Keeping Americans Unbanked
This proposed legislation, the Financial Inclusion in Banking Act of 2025, directs the Consumer Financial Protection Bureau (CFPB) – the federal watchdog for financial products – to establish a new Office of Community Affairs. According to Section 2, this office has a clear mission: figure out why many Americans are 'under-banked' (having a bank account but still relying on costly alternative services like check cashers) or 'un-banked' (lacking any bank account at all), and develop strategies to bring them into the mainstream banking system.
Digging into the 'Why': Research and Collaboration
The core job of this new office is investigation and coordination. It's tasked under Section 1013(b)(2) of the Consumer Financial Protection Act (as amended by this bill) to conduct research, talking directly with groups ranging from banks and credit unions to consumer advocates and civil rights organizations, to understand the real obstacles people face. Think about why someone might stick with prepaid cards despite high fees, or why opening an account feels out of reach – this office aims to find those answers. It will also team up with other federal agencies to pool knowledge and coordinate efforts to boost banking participation and improve financial education tailored to underserved communities.
Reporting Back: Accountability and Action Steps
This isn't just about research; it's about creating a path forward. The Office of Community Affairs must report its findings and recommendations to Congress every two years. These reports will detail the factors keeping people from 'fair and sustainable' banking relationships and suggest concrete ways to lower those barriers. The bill specifically notes these reports should, when possible, alternate years with the Federal Deposit Insurance Corporation's (FDIC) existing survey on the unbanked (mandated by Section 49 of the Federal Deposit Insurance Act). This ensures a steady stream of information to lawmakers, aiming to translate research into actionable policies that could eventually make basic banking services more accessible and affordable for everyone.