On October 29th, Treasury Secretary Janet Yellen unveiled the inaugural National Strategy for Financial Inclusion. This strategy establishes a framework and set of priority objectives to facilitate consumers’ ability to equitably access safe and useful financial services to meet their financial needs and achieve their financial goals.

The strategy is intended as an actionable roadmap for stakeholders—including policymakers, financial institutions, nonprofits, researchers, and community advocates—to work collaboratively towards a more inclusive financial system. As a foundational document, its objectives and recommendations are meant to be revisited and built upon over time to advance financial inclusion in the context of emerging trends and opportunities.

“[The National Financial Inclusion Strategy intends to] promote an inclusive financial system that works to reduce rather than compound disparities”.

-Treasury Secretary Janet Yellen

The strategy is anchored on five core objectives, each with specific, actionable recommendations to guide stakeholders in the public, private, and nonprofit sectors in making meaningful progress to improve financial inclusion.

 Financial Inclusion Objectives

Objective 1: Promote Access to Transaction Accounts that Meet Consumer Needs

Objective 2: Increase Access to Safe and Affordable Credit

Objective 3: Expand Equitable Access to Savings and Investments

Objective 4: Improve the Inclusivity of Financial Products and Services Provided or Backed by the Government

Objective 5: Foster Trust in the Financial System by Protecting Consumers from Illegal and Predatory Practices

The strategy touches on Direct Express®, noting that:

 “Treasury offers the Direct Express®repaid debit card, which allows individuals, including unbanked individuals, to access their federal benefit payments electronically. Direct Express®is the largest prepaid debit card program serving federal benefit recipients, with over 3.8 million active cardholders”

 It also references the importance of innovation in the Direct Express® program, highlighting:

[The Bureau of the Fiscal Service’s financial agent requirement for Direct Express®] “…. emphasizes the significance of innovation to advance electronic payment capabilities, low fees, and improving customer service and the overall customer experience.”

More about Direct Express® and innovation is available on this site’s Innovation and Relevance pages.

Direct Express® offers a path to increased financial capability and financial inclusion for millions of unbanked Americans, giving recipients the tools they need to participate fully in the economy. As such, it has a role to play in delivering the National Financial Inclusion Strategy. You can learn more about Direct Express® and Financial Inclusion HERE.

A Treasury Fact Sheet about the National Financial Inclusion Strategy is available HERE.

The full National Financial Inclusion Strategy is available HERE.

SOURCE: US Treasury Department