Under-banked, unbanked, and underserved consumers need support from the federal government, according to U.S. Rep. Young Kim (R-CA), who recently unveiled a bipartisan bill to expand their access to financial opportunities.
“All Americans should be able to access the tools needed to achieve their dream,” Rep. Kim said. “As an immigrant and small business owner, I have seen firsthand the challenges to accessing capital and knowing what resources are available.”
The congresswoman on June 13 cosponsored the Financial Inclusion in Banking Act of 2024, H.R. 8740, alongside bill sponsor U.S. Rep. David Scott (D-GA).
If enacted, H.R. 8740 would direct the Consumer Financial Protection Bureau (CFPB) to find solutions for under-banked, unbanked, and underserved communities and to improve coordination between federal agencies, trade associations, and financial institutions to improve consumer access to banking, according to a bill summary provided by the lawmakers.
“I’m proud to co-lead this bipartisan bill to help underserved communities access financial opportunities,” said Rep. Kim. “As co-chair of the Financial Literacy and Wealth Creation Caucus, I’ll keep fighting to ensure all Americans can grow their wealth, succeed, and achieve their dream.”
Specifically, H.R. 8740 would require the CFPB to lead a coordinated effort with banking trade associations, consumer groups, civil rights groups, and other federal agencies to assess its findings; identify strategies to increase financial education; and submit a report to Congress every two years on legislative and regulatory recommendations to promote participation in the financial system, the summary says.
“It is expensive to be unbanked or underbanked in the United States,” Rep. Scott said. “The Financial Inclusion in Banking Act will accelerate the access of unbanked and underbanked communities to affordable mainstream accounts and expand access to more low-cost banking and alternative financial products.”
H.R. 8740 is under consideration by the U.S. House Financial Services Committee.