H.R. 2890: Financial Inclusion in Banking Act of 2025

The Financial Inclusion in Banking Act of 2025 aims to enhance access to banking services for under-banked, un-banked, and underserved consumers. The legislation proposes several key changes and responsibilities for the Office of Community Affairs within the Consumer Financial Protection Bureau (CFPB).

Key Provisions

• Establishment of the Office of Community Affairs: The bill mandates that the CFPB create an Office of Community Affairs that will specifically address the needs of under-banked, un-banked, and underserved consumers.
• Research Coordination: This office will lead research efforts to identify the causes and challenges that prevent certain individuals and households from forming sustainable relationships with banks and depository institutions. The Office will collaborate with various stakeholders, including:
  • Trade associations representing both traditional and minority depository institutions.
  • Organizations representing low- and moderate-income populations.
  • Civil rights and community groups.
  • Consumer advocacy groups.
• Expert Identification: The Office will identify subject matter experts within the CFPB to focus on the issues contributing to under-banked and un-banked statuses.
• Interagency Coordination: The Office will also coordinate with other federal agencies to analyze the factors preventing participation of these consumers in the banking system.
• Financial Education Strategies: The Office will develop strategies to enhance financial education among under-banked and un-banked consumers, ensuring they are better informed about their banking options.
• Reporting Requirements: The Office must provide a report to Congress within two years of the Act's enactment and every two years thereafter. This report will outline the barriers hindering access to banking for these consumers, including any regulatory or structural obstacles, and will present recommendations to improve participation in the financial system.

Goals of the Legislation

The primary objective of the Financial Inclusion in Banking Act of 2025 is to improve financial access and education for individuals and households that may struggle to engage with traditional banking institutions. By focusing on research and coordination, the Act aims to identify systemic issues and establish actionable solutions that can lead to enhanced banking participation among underserved communities.

Relevant Companies

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