On October 29, 2024, the U.S. Department of the Treasury unveiled its National Strategy for Financial Inclusion, a long-awaited milestone that brings the U.S. in line with 60 other nations prioritizing household financial well-being. With a new presidential administration set to begin, the strategy offers several opportunities to advance key objectives and improve balance sheet outcomes for all Americans.
At its core, the strategy advances the field in two pivotal dimensions of financial inclusion. First, it emphasizes that financial security depends not only on access to financial products and services but whether their design enables people to use them for financial benefit. Access alone is insufficient if products, like checking accounts, are difficult to use or include features—such as high fees—that hinder financial stability. This marks a critical shift toward ensuring financial systems serve households effectively. At Aspen FSP, we’ve long championed this broader approach, measuring not just access but also usability and benefit.
Second, the strategy highlights often overlooked components of the financial system, including savings, investments, and public benefits, as essential tools for resilience and wealth building. These elements, often overlooked in financial inclusion efforts, have a crucial role in strengthening households’ long-term financial well-being.
Aspen FSP co-executive director Joanna Smith-Ramani (right) attended a U.S. Department of the Treasury launch event for the National Strategy for Financial Inclusion with other national leaders including Secretary Janet Yellen (center).
Among the strategy’s many recommendations, we are particularly encouraged by its focus on expanding access to safe and affordable credit. Accurate credit pricing, supported by broader data and advanced analytics, can unlock credit for millions. Treasury rightly identifies a flaw in the current credit scoring system: It excludes valuable information, such as cash flow from payroll, bank accounts, and payment histories (e.g., rent and utilities). This exclusion disproportionately impacts households without credit history by limiting their credit opportunities.
In alignment with the Consumer Financial Protection Bureau’s recent rulemaking on consumer-permissioned data sharing, Treasury’s approach to integrating new data sources could transform credit access. Leveraging tools to harness this data not only benefits households but also allows financial service providers to design better products. This creates a win-win: expanding responsible credit access while enabling providers to innovate with greater precision.
The strategy sets a strong foundation for collaboration across sectors, particularly the private sector. We look forward to partnering with the Treasury, the Aspen FSP-convened Working Group on Inclusive Finance, and others to turn these recommendations into actionable progress. By moving beyond access and embracing comprehensive solutions, we can help more households build resilience and ultimately create wealth.
