HR 2890119th CongressIn Committee

Financial Inclusion in Banking Act of 2025

Introduced: Apr 10, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Financial Inclusion in Banking Act of 2025 would modify the Consumer Financial Protection Act of 2010 to create a formal Office of Community Affairs within the CFPB. This office would lead research and interagency coordination to identify causes of and solutions for why some individuals and households are under-banked, un-banked, or underserved by the banking system. It would engage a broad set of stakeholders (including trade associations, minority depository institutions, consumer groups, civil rights organizations, and community groups) and work with the Bureau’s research unit and other federal agencies to develop strategies and expand financial education for these communities. The Act also requires the Office to issue Congress-reports every two years outlining barriers to banking participation and recommending actions to improve access, with timing aligned as practicable with FDIC reporting requirements.

Key Points

1Establishment of the Office of Community Affairs within the CFPB (replacing the prior generic “unit”) to focus on under-banked, un-banked, and underserved consumers.
2Duties include leading research coordination to identify causes and challenges, consulting with a broad coalition of stakeholders, identifying subject matter experts within the Bureau, coordinating interagency efforts, and developing strategies to increase financial education for affected populations.
3Requires regular reporting to Congress: a biannual report (every two years) detailing factors hindering access to fair and sustainable banking relationships, identifying regulatory or structural barriers, and providing recommendations to improve participation in the banking system.
4Mandates coordination with the CFPB’s research unit and other Bureau offices for implementing its duties.
5Timing provision: the required reports should be issued in years when FDIC’s own report on encouraging unbanked individuals to use depository institutions (under FDIA Section 49) is not being issued, to the extent possible.

Impact Areas

Primary group/area affected: under-banked, un-banked, and underserved consumers, especially low- and moderate-income individuals and minority communities.Secondary group/area affected: depository institutions (including minority depository institutions), trade associations, consumer advocates and groups, civil rights organizations, community organizations, and other federal agencies involved in financial services and housing/poverty policy.Additional impacts: increased data collection and analysis on barriers to banking, more formal interagency coordination on financial inclusion, a structured framework for expanding financial education, and potential changes to regulatory or policy considerations to improve access to banking services.

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