CFPB Creates New Office to Study Why Millions Are Shut Out of Traditional Banking

The Financial Inclusion in Banking Act of 2025 is aiming to tackle a huge, often invisible problem: why so many Americans—the un-banked and under-banked—don't have access to basic financial services. This section of the bill focuses on structure, mandating that the Consumer Financial Protection Bureau (CFPB) officially establish a new division called the Office of Community Affairs (SEC. 2. Creating the Office of Community Affairs).

The New Office: Researching the Banking Desert

Think of this new office as the CFPB’s dedicated team of detectives focused on financial exclusion. Their main job is to lead research into the exact reasons people are avoiding or being shut out of traditional banks. This isn't just an academic exercise; it’s about figuring out why a construction worker who gets paid cash, or a recent immigrant, or a retiree in a rural area might rely on check cashers or expensive payday loans instead of a simple checking account (SEC. 2. The Office's Job for Un-banked Consumers).

To make sure they get the full picture, the Office is required to consult widely. They have to talk to the big players—like trade associations for large banks and minority-owned banks—but also to consumer advocates, civil rights organizations, and groups representing underserved communities. This broad consultation is key because it forces the CFPB to look beyond industry talking points and understand the real-world barriers people face, from high fees to lack of nearby branches.

From Research to Real-World Strategy

Beyond just researching the problem, the Office of Community Affairs is tasked with two crucial action items. First, they must coordinate efforts with other federal agencies. If the goal is to get more people into the financial system, the CFPB can’t work in a silo; they need to align strategies across the government. Second, they must develop strategies to boost financial education specifically for these underserved consumers. While the bill doesn't specify how they'll do this, the intent is clearly to bridge the knowledge gap that often keeps people outside the mainstream financial system.

Accountability and Reporting

Perhaps the most important part for accountability is the reporting requirement. Within two years of the law passing, and every two years after that, the Office must send a detailed report to Congress (SEC. 2. Reporting Back to Congress). This report must identify the factors—including legal hurdles or structural issues—that prevent fair banking relationships. Crucially, it must also include specific recommendations on how to encourage better participation. This means the CFPB can’t just collect dust on the research; they have to propose concrete policy changes to fix the problems they find. For busy people, this means that every two years, Congress will get a mandated roadmap for improving financial access, forcing the issue back into the legislative spotlight.