WASHINGTON, D.C. – Shayna Olesiuk, Director of Banking Policy, issued the following statement in connection with the Treasury Department’s Inaugural National Strategy for Financial Inclusion.

“For too long, our financial system has not worked for all Americans. Generations of discrimination and mistreatment informed by racist beliefs, narratives, laws, policies, and practices have contributed to deeply entrenched structural inequities within the financial services sector that continue to profoundly undermine the economic status of people of color. This will not be easily undone. A concerted commitment is badly needed and long overdue. That is why we are encouraged that the Treasury’s plan is an important step toward positive change.

“Previous efforts to address the persistent gap in financial inclusion for minorities and low-income communities have proven ineffective. During the last two decades, underserved communities have only fallen further behind. For example:

• In 2003, white Americans held more than 90% of total wealth, Black Americans held only 4%, and Hispanic Americans held just 2%. By 2023, Black Americans’ wealth share declined to 3% of the overall total and Hispanic Americans’ share was unchanged at 2%.
• In 2003, Americans held about $44 trillion in aggregate wealth. The highest 1% of income earners held nearly 20% of that total while the bottom 40% of income earners held about 10% of total wealth. By 2023, total wealth had tripled to more than $150 trillion. However, the distribution of that wealth became even more concentrated at the upper end of the income spectrum. In 2023, the top 1% of income earners held 23% of total wealth while the bottom 40% of income earners held less than 8%.

“Treasury incorporated each of our recommendations in its plan, including:

• Supporting financial institutions that focus on underserved communities;
• Using alternative credit scoring models for those with no (or limited) credit history;
• Protecting consumers from unlawful and discriminatory practices;
• Increasing diverse frontline staff at banks; and
• Increasing data collection including on financial inclusion barriers and outcomes.

“Of course, a plan is only as good as the action that follows it. We urge the Treasury to take swift and strong action to implement its financial inclusion initiatives. And, we look forward to updates and reports on its progress.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.