Yellen: Banks Are Crucial for Supporting Economic Priorities

U.S. Treasury Secretary Janet Yellen announced a new National Strategy for Financial Inclusion, focusing on access to transaction accounts, safe and affordable credit, and savings and retirement opportunities, during her opening speech at the ABA Annual Convention.

The strategy also emphasizes steps the federal government can take in payment and support programs and aims to enhance the protection of consumers from illegal and predatory practices. It highlights the government's role in using consumer-to-government payments as leverage to encourage the opening of transaction accounts and the private sector's role in offering and marketing Bank On-certified accounts to reduce the number of unbanked Americans. The strategy also underscores the role of alternative data and Specialized Credit Programs in expanding financial inclusion.

In her speech, Yellen emphasized the role of bankers, particularly highlighting the Reading Cooperative Bank, led by former ABA Chair Julieann Thurlow, for its innovation in financial inclusion. Yellen stated that the strategy provides "a roadmap to encourage the full participation of all communities in our robust economy and financial system." She noted, "The strategy benefited from a year-long process of gathering input, including continuous engagement with ABA staff and members, other government agencies, consumer advocates, and many others."