迈克尔·S·巴尔：在银行业金融包容性会议上的讲话

Forreleaseondelivery2:00p.m.EST(1:00p.m.CST)February7,2023RemarksattheBankingonFinancialInclusion”ConferencebyichaelSBarrViceChairforSupervisionBoardofGovernorsoftheFederalReserveSystemHopeEconomicMobilityForumatJacksonStateUniversitycksonMississippiFebruary023ThankyouBillandthankyoutoHopeEnterpriseCorporationandJacksonStatepeaktodayItsgoodtobebackinMississippiItsBlackHistoryMonth,andIfeelprivilegedtobeatthisgreathistoricallyBlackuniversity,speakingonatopicofsuchvitalimportancetoourcountry.Imademyfirsttriptothisstateasagovernmentofficialaquartercenturyago,toClarksdaleMississippiIrememberitwasaswelteringJulyday,andwevisitedalocalcabinetmanufacturerwithBillBynum,who,inmyjudgment,isoneoftheheroesoftheeconomicjusticemovementThecompanyhadreceivedfinancingfromHope,whichwasthenknownastheEnterpriseCorporationoftheDelta.Onthathotday,PresidentClintoncalledonbankstodomoretomeettheneedsoftheircommunities,todomoreunderarevampedCommunityReinvestmentAct(CRA),andtohelpsetuporsupportCommunityDevelopmentFinancialInstitutions,orCDFIs,suchasHope,partneringwiththenewlycreatedCDFIFundatTreasury.AndhecalledonCongresstopasstheNewMarketsTaxCredit(NMTC)toprovidetaxcreditstoindividualsandcorporationsformakingequityinvestmentsinCommunityDevelopmentEntities(CDEs)inplacessuchastheMississippiDelta.This,inturnwouldhelpestablishandgrowlocalbusinesses,createjobs,increaselocalpurchasingpower,andgeneratemorelocalinvestmentopportunities.CongressenactedtheNMTCinDecember0withbipartisansupport.Sinceitsinception,CDEslikeHopehaveusedtheprogramtosupportawidearrayofjob-creatingbusinessesthatincreaselocalaccesstogoodsandservicesaswellastoincreasethe1TheviewsherearemyownanddonotnecessarilyreflectthoseofmycolleaguesontheFederalReserveBoardortheFederalOpenMarketCommittee.IamgratefultoChristineGrahamandKirstenNolandfortheirassistanceinpreparingthistext.-2-availabilityofimportantcommunityinfrastructuresuchasruralhospitalsTodate,theNMTCprogramhasawardedover$71billionoftaxcredits,whichtranslates,amongotherthings,into857,000jobsandalmost239millionsquarefeetofcommercialrealestate.2Inaddition,theCDFIFundhasawardedmorethan$5.5billioningrantsandguaranteedover$2.1billioninbonds.3TheseprogramsandotherslikethemalsoenableCDFIstoincreaseaccesstofinancialservicesinunderservedcommunities,whichcanleadtoopportunityandgreatereconomicmobilityThismorning,weheardinsightfuldiscussionsabouteconomicmobilityintheDeepSouth,includinghowtocreateladdersofeconomicopportunity,andtheimportantrolethataccesstofinancialservicesplaysineconomicmobility.DiscriminationtheRacialWealthGapandDisparitiesinAccessWeallhaveaninterestinpromotingavibranteconomyaswellasresilientfamiliesandcommunities.Insuchaneconomy,peoplewouldhaveaccesstocreditonfairandequaltermstobuildasecurefinancialfoundation.Yet,despitewidespreadacceptanceofthisvision,wehaveawaytogoinmakingitareality,particularlyforBlackhouseholdsImgoingtospeaktothreedriversofthisdisparity,andthreewaysthatthefinancialservicescommunityshouldworktogethertoaddressthem.2TreasuryAnnounces$5BillioninNewMarketsTaxCreditAwardstoRevitalizeLow-IncomeandDistressedCommunities.U.S.DepartmentoftheTreasury,CommunityDevelopmentFinancialInstitutionsFund.October26,2022./programs-training/programs/new-markets-tax-credit/award-announcement-step.3TreasuryAnnounces$5BillioninNewMarketsTaxCreditAwardstoRevitalizeLow-IncomeandDistressedCommunities.U.S.DepartmentoftheTreasury,CommunityDevelopmentFinancialInstitutionsFund.October26,2022./programs-training/programs/new-markets-tax-credit/award-announcement-step.-3-FirsttherearesignificantandtroublingdisparitiesinlendingoutcomesforBlackindividualsandbusinessesrelativetoothers.4Whileresearchsuggeststhatprogresshasbeenmadeinaddressingracialdiscriminationinmortgagelending,regulatorscontinuetofindevidenceofredliningandpricingdiscriminationinmortgagelendingatindividualinstitutions.5RecentresearchonautolendingdataindicatesthatracialbiasmayleadtohigherratesforBlacksonfinancingtopurchasecars.6ArecentstudyfindsthatautomatingdecisionsreduceddisparitiesinlendingtoBlack-ownedbusinessesinthePaycheckProtectionProgram(PPP),suggestingthepersistenceofdiscriminationinthatmarket.7AndtheFederalReserveSystem’sSmallBusinessCreditSurveyhasfoundthatovermanyyearsBlack-ownedbusinessesreportedmoresignificantcreditaccesschallenges,includingfeelingdiscouragedfromapplyingforcredit,beingdeniedcredit,andbeingapprovedforlessthantheamounttheyoriginallyappliedfor,comparedto4See,e.g.,DataPoint:2021MortgageMarketActivityandTrends.ConsumerFinancialProtectionBureau/f/documents/cfpb_data-point-mortgage-market-activity-trends_report_2022-09.pdfandtheFederalReserveSmallBusinessCreditSurvey,2022.FederalReserveSystem/survey5CompareMunnell,Tootell,Browne&McEneaney(1996)withBhutta,Hizmo,&Ringo(2022).Withrespecttoindividualbanks,see,e.g.,Compl.,U.S.v.LakelandBank,No.2:22-cv-05736(D.N.J.)(allegingthatLakelandBankengagedinunlawfulredliningintheNewarkmetropolitanareabyfailingtoprovidemortgagelendingservicestoBlackandHispanicneighborhoods);Compl.,U.S.v.CityNationalBank,No.2:23-00204(C.D.California,filedJanuary12,2023)(allegingthatCityNationalBankengagedinunlawfulredliningintheLosAngelesMetropolitanDivisionbyavoidingprovidingcreditservicestomajority-BlackandHispanicneighborhoodsbecauseoftherace,colorandnationaloriginofthepeoplelivinginthoseneighborhoods);Compl.,U.S.v.EvolveBankandTrust,No.22-cv-2667(W.D.Tennessee,filedSeptember29,2022)(allegingthatEvolveBankandTrustengagedinlendingdiscriminationonthebasisofrace,sex,andnationalorigininthepricingofmortgageloans).6SeeLanning(2021).7SeeHowell,Kuchler,Snitkof,Stroebel&Wong(2022).8SmallBusinessCreditSurvey2022:ReportonFirmsOwnedbyPeopleofColor.FederalReserveSystem/survey/2022/2022-report-on-firms-owned-by-people-of-color-4-Compoundingthesechallengesistheracialwealthgap.9FederalReservedataabouteighttimesthewealthofBlackfamiliesWhitefamilieshadamedianwealthofapproximately$188,000,comparedto$24,000forhmakeitdifficultforpeopleofcolortofinanceadownpaymentforahomeinvestineducation,orestablishasmallbusiness—allcentraltotheAmericandream.TheselowlevelsofwealthalsomakeitdifficultforBlackfamiliestoweatheremergenciessuchasjobloss,orpayforunexpectedexpenses,whichcanleadtoeviction,repossessionofvehicles,andotherdevastatingconsequences.Andthereareracialdisparitiesinfinancialservices.Whiletherehasbeensignificantprogressoverthelasttwenty-fiveyearsinexpandingaccesstobankingservicestheFederalDepositInsuranceCorporation(FDIC)’smostrecentannualsurveyoftheunbankedandunderbankedfoundthattheunbankedrateforBlackhouseholdswaspercentforWhitehouseholdsTheunbankedrateforBlackhouseholdsinMississippiwasmorethandoublethenationalaverageforBlackbankaccountcanpresentchallengesforsavingleadingtothesameinsecuritiesInotedabove—andleadtorelianceonexpensive,alternativeproductsInadditiontohigherunbankedrates,only48.8percentofBlack9Forexample,seeYellen,J.L.(2014).PerspectiveonInequalityandOpportunityfromtheSurveyofConsumerFinances.BoardofGovernorsoftheFederalReserveSystem/newsevents/speech/yellen20141017a.htm10SurveyofConsumerFinances,BoardofGovernorsoftheFederalReserveSystem/econres/scfindex.htm.11SurveyofConsumerFinances,BoardofGovernorsoftheFederalReserveSystem/econres/scfindex.htm.SeealsoBhutta,Chang,Dettling&Hsu(2020).12FDICNationalSurveyofUnbankedandUnderbankedHouseholds.FederalDepositInsuranceCorporation(FDIC)./analysis/household-survey/2021report.pdf.13Forstate-leveldata,seetheFDICCustomDataTableTool.-5-cardcomparedtopercentofWhitehouseholdsCreditcardownershiprateswereevenlowerinMississippiat28.4percentforBlackcentforWhitehouseholdsAcreditcardnotonlyprovidesabufferforunexpectedexpenses,italsoallowsindividualstoaccrueacredithistory—centraltoaccessingcreditinthefuture.AddressingTheseIssuesNowletmeturntosomewaystomakeprogress.I’llsetoutthreeareasinwhichfinancialinstitutionsandregulatorsshoulddotheirparttoaddresstheseissues,althoughtheissuesarecomplexandmultifaceted,andtherearenoeasysolutions.FirstEradicatediscriminationinlendingandotherfinancialservices,andprotectconsumersfromotherunfair,abusive,orillegalpractices.Itisincumbentonfinancialinstitutionstodevoteresourcestostampoutthesepractices,andonregulatorstoreinforcetheimportanceofthisgoalthroughsupervisionandenforcement.dLookforopportunitiestosupportavibrantandthrivingeconomyforthebenefitofeveryone.Thismeansseekingoutopportunitiestoinvestinlow-andmoderate-income(LMI)communities,smallbusinesses,andcommunityinfrastructure.Third:Developproductsandservicesthatcanhelppeoplesaveandbuildwealth.icatingDiscriminationIllstartwithourcollectiveresponsibilityforeradicatingdiscriminationinunderwritinglendingandotheraspectsoffinancialservices.Formostofourcountry’shistory,theUnitedStatesgovernmentandmanystateandlocalgovernments,aswellas14FDICNationalSurveyofUnbankedandUnderbankedHouseholds.FederalDepositInsuranceCorporation(FDIC)./analysis/household-survey/2021report.pdf.15Forstate-leveldata,seetheFDICCustomDataTableTool.-6-manyprivateindividualscorporations,andorganizations,didnotmerelyfailtoprotectminoritiesfromdiscriminationtheyactivelyreinforcedsegregation,entrenchedinequalityandenforcedunequalpoliciesincludingthroughbrutalviolence7TheCivilRightsMovementbroughtaboutchangesinpublicopinionandinlaw.Discriminationinhousingandlendingbecameillegalin1968and1974,respectively,throughpassageoftheFairHousingAct,andtheEqualCreditOpportunityAct.CongresspassedlawssuchastheCommunityReinvestmentActin1977,toremediateredlining.Buthistorycastsalongshadow.Howcanwebothbanksandregulators—understandandaddresstheseproblemswheretheypersist?Tostart,therearesomeareaswhereweneedbetterdata.Forexamplesmallbusinesslendingdatarequiredbysection1071oftheDodd-FrankAct,onceimplementedwillprovidetangibleinsightsintotheavailabilityandpricingofcreditforminoritysmallbusinesses.Banksshouldalsoactivelyanalyzetheirowndatatoidentifyareaswhereracialdisparitiesoccur.On-the-groundtesting,usingtechniquessohelptoidentifydiscriminatorypracticesAndtotheextentthatabankusesAIorotheralgorithmicsystemsinmakinglendingdecisions,theyshouldreviewtheunderlyingmodels,suchastheircreditscoringandunderwritingsystemsaswellastheirmarketingandloanservicingactivities,justastheyshouldfor16SeeRothstein(2017).17SeeCook(2014).18Mysteryshoppinginvolvestwoindividualswhoareidenticalexceptforaprotectedclassattribute(suchasrace),andhastheseindividualsapplyforcreditproducts.Theresultsareexaminedfordisparatetreatmentbasedonthatattribute.19SeeSRLetter11-7.SeealsoMorse&Pence(2020),whichexploresthepotentialoffintechtoincreasefinancialinclusionandattendantconsumerprotectionrisks.-7-Racialbiasintheresidentialrealestatemarkethaslongbeennotedasasourceofconcern.20InJanuary,theFederalFinancialInstitutionsExaminationCouncil’sAppraisalSubcommitteeheldapublichearingonappraisalbiasintheresidentialrealestatemarketIlookforwardtoworkingwithmyfellowregulatorstohelpensurethatindividualsaretreatedequallyintheappraisalprocessregardlessofraceortheracialcompositionofneighborhoods.Moregenerallythereisanother,glaringlyobviousreasonforbankstodoalltheycantoeradicatediscriminationinlending.Itissimplygoodbusiness.Ensuringthatallwouldbeborrowersaretreatedequallymeansmorecustomers,moreloans,andbetterreturnsforbanks.TheFederalReserveandourfellowregulatorshaveaclearresponsibilitytouseoursupervisoryandenforcementtools.21Allfirmshavearesponsibilitytooperateinamannerconsistentwithsafetyandsoundnessandincompliancewithlawsandregulationsincludingthoserelatedtoconsumerprotection.Congressprovidedregulatorswithsupervisoryandenforcementtoolstohelpensurethatsupervisedfirmsresolveconsumerprotectionweaknessesaswellasthemorepervasiveriskmanagementissuesthatoftenleadtothoseweaknesses.WehaveacloseworkingrelationshipwiththeConsumerFinancialProtectionBureauandotherregulatorsandintegrateotherregulatorsconsumer-focusedreviews—suchasexaminationsforunfair,deceptive,or20SeeRothwellandPerry(2022).21TheDodd-FrankActdividedresponsibilityforsupervisingbanksunderconsumerprotectionlawsbetweentheprudentialregulatorsandtheConsumerFinancialProtectionBureau(CFPB),withtheCFPBhavingprimaryresponsibilityforcertainlawsforbankswithassetsgreaterthan$10billion.Specifically,theFederalReserveandtheCFPBhaveoverlappingauthorityforstatememberbanksonUnfair,Deceptive,andAbusiveActsandPractices(UDAP/UDAAP)matters.TheFederalReservealsohasresponsibilityforsupervisionofbankholdingcompanies,includingannuallyassessingriskmanagementandcompliance.-8-abusiveactsorpracticesaswellasfairlending—intoourassessmentsofbankholdingcompaniesincludinginthecontextofapplicationsformergersandacquisitions.Suchcollaborationiscriticaltoensurealevelplayingfieldandstrongconsumerprotectionenforcement.ingVibrantCommunitiesButevenifweaddresscurrentdiscriminatorypractices,wearestillleftwiththelegacyofdiscriminationandredlining,whichhelpedperpetuateeconomicallydepressedBlackneighborhoods.22Historically,theseneighborhoodshavenothadthebenefitofrobustcreditandfinancialservices,whichhinderedtheirgrowthandleftthemlesseconomicallyconnectedthanwealthierneighborhoods.Thislackofconnectivitycanhavealargeimpactonanindividual’seconomicmobility.23Beforeturningtotheroleofregulatorsletmefirstspeakabitabouttheroleofprivateinstitutionsinsupportingthesecommunities.FirstCDFIsandMinorityDepositoryInstitutionsorMDIsarecriticalbecausetheydeliverfinancialproductstoplacesandpeopleoftenleftbehindbyotherfinancialinstitutionsComparedtootherbanks,MDIsoriginateagreatershareofmortgagestominorityborrowersandborrowerswholiveinlower-andmiddle-incomecensustracts.24AndtheyplayedacriticalroleindisbursingthePPP.RecentlegislationbolsteredtheCDFIswithfundsfromtheEmergencyCapitalInvestmentProgram(ECIP).HopeFederalCreditUnionestimatesthattheECIPfundsitreceivedwillallowittodoubleits22See,e.g.,Rothstein,R.(2017).23SeeChetty,Jackson,Kuchler,Stroebel,Hiller,Oppenheimer&team(2022).24SeeFriesenhahn&Kwan(2021).-9-consumermortgagesmallbusinessandconsumerlendingportfoliosoverthenextsixyears,andHopewasabletomobilize$140millionofPPPfundstosmallbusinesses.25CommunitybanksalsoserveanimportantroleThroughtheirlendingtolocalcommunitiesandsmallbusinessestheyoftenknowtheircustomerspersonallyandengageincommunity-buildingactivities.Largebanksalsohaveakeyparttoplay.Forexample,in2022,manylargefinancialinstitutionsinitiatedorexpandedspecialpurposecreditprograms,manyofwhichprovidemortgageassistancetobenefitBlackandHispaniccommunities.26Inadditiontotheirownlending,theyhelpsupportMDIsandCDFIsthroughtechnicalassistanceandinvestment.Theyoftenshareexpertiseintechnology,businesssupportsolutions,taxconsiderations,andbringingprogramstoscale.Andasisoftentruetheimpactcanbegreatestthroughcollectiveefforts.In5,whileIwasattheUniversityofMichigan,Ihelpedaformerstudent,JamesWahls,designaprogramtobringtogetheralocalCDFI,philanthropies,andseveralbanks,tolaunchtheEntrepreneursofColorFundinDetroit.TheFundextendedcredittosmallbusinessesinDetroitthatotherwisemightnotqualifyforbanklending,attherateofmorethan$2millionayear.27Andthatsameapproachisnowbeingusedbyeight25TestimonyofWilliamJ.(Bill)Bynum,HopeCreditUnion,HopeEnterpriseCorporation,HopePolicyInstitute—BeforetheUnitedStatedHouseFinancialServicesCommitteeFebruary16,2022./manage/wp-content/uploads/FINAL-HOPE-Section-1071-Comment-01-06-222.pdf.26TheGovernment-SponsoredEnterprisesalsopublishedEquitableHousingPlansinJune2022announcingplanstodevelopspecialpurposecreditprograms.FreddieMac’sEquitableHousingPlandescribeditsmulti-yearplantodevelopitsownspecialpurposecreditprogramandprovideliquiditypursuanttotheprogram/about/pdf/Freddie-Mac-Equitable-Housing-Finance-Plan.pdf.FannieMae'sEquitableHousingPlandescribeditsstrategyfordevelopingspecialpurposecreditprograms,includingitplanstoidentifymarketstopilotandtestapotentialprogram/media/43636/display.27EntrepreneursofColorFund,Detroit,MI./eocf/impact/detroit-eocf/.-10-additionalcitiesandinvolvesmorethantwentylocalCDFIpartnersClosertohome,HopetogetherwithalargebankandasetofHBCUs—haspartneredtoformtheDeepSouthEconomicMobilityCollaborativeThisprogramprovidescapital,educationalresourcesandbusinesssupportservicestosmallbusinessesandentrepreneursintheDeepSouth,especiallythosefromunderservedandunderresourcedcommunities.TurningtotheroleofregulatorsweshoulddowhatwecantoencouragetheprivateeffortsImentionedabove.Forinstance,theFed’sPartnershipforProgresshelpsMDIsnavigatetheiruniquebusinesschallenges,providesMDIswithresourcesfortechnicalassistance,andconductsresearchontheuniquechallengesfacedbyLMIcommunities.28WeconductandpromoteresearchonCDFIsandengageinthought-leadershiptoexplorewaystobringadditionalcapitalandliquiditytotheCDFIsector.29InadditionregulatorsshouldalsoensurethatourregulationsprovideappropriateincentivesforbankstoinvestinLMIcommunitiesandlendtoLMIhouseholds.TheCRAhelpstoaddressredliningandothersystemicinequitiesinaccesstocredit,investmentandbankingservicesfacedbyLMIcommunities.ThelastmajorrevisionstotheCRAsregulationsweremadein1995,anditishightimethatwestrengthenandmodernizetheregulationstoreflectthemanychangesinbankingsincethen.In2022,theFederalReserveBoardtheFDIC,andtheOfficeoftheComptrolleroftheCurrency28MinorityDepositoryInstitutions.BoardofGovernorsoftheFederalReserveSystem/supervisionreg/minority-depository-institutions.htmandReportonPromotingMinorityDepositoryInstitutionsSeptember2022.BoardofGovernorsoftheFederalReserveSystem/publications/2022-september-promoting-minority-depository-institutions.htm292021CDFISurvey.FederalReserveBankofRichmond/region_communities/community_development/resources/cdfi/cdfi_survey_2021andTransformingCommunities:DrivingandAssessingInvestment.FederalReserveBankofNewYork/outreach-and-education/community-development/community-development-finance-conference-11-requestedcommentsfromthepubliconaproposaltodojustthat.Importantly,theproposalwouldencouragebankstoexpandaccessinLMIcommunitiestohomemortgage,smallbusiness,andothercredit,tomakecommunitydevelopmentinvestmentsandengageinlendingandbankingservices.Theproposalwouldadapttheregulationstoaddresschangesinthebankingsector,includinginternetandmobilebankingandupdatetheapproachtoassessmentareas.Italsowouldprovidemoreclarity,consistency,andtransparencyforCRAevaluationsandeligibleactivities.Isupporttheoverallobjectivesoftheproposal,andIampleasedthatallthreeagenciesareworkingtogethertohaveunifiedregulations.30Theagenciesarebenefittingfromthethoughtfulcommentletterswereceivedontheproposal,andallthreeagenciesarehardatworkfinalizingtherule.AnotherareawhereCongressdirectedtheBoardtoconsidertheconvenienceandneedsofcommunitiesisthroughourreviewofbankmergers.AsI’vesaidbefore,mergersareafeatureofvibrantindustries,buttheadvantagesthatfirmsseektogainthroughmergersmustbeweighedagainsttherisksposed,andthecostsandbenefitstothecommunity.Thereislikelyimportantworkwecandotoimproveourassessmentoftheconvenienceandneedsfactorforbankmergers.Wealsohaveanimportantroletoplayinensuringthatoursafetyandsoundnessregulationsdonotneedlesslyimpedefinancialinclusion.Forexample,bankscanmakeinvestmentsthatsupportLMIcommunities,calledpublicwelfareinvestments,subjecttocertaincaps.Weplantochangeourapproachtocomputingthepublicwelfare30SummaryofKeyObjectivesoftheInteragencyCRAProposal.BoardofGovernorsoftheFederalReserveSystem/consumerscommunities/files/cra_npr_key_objectives_20220505.pdf.-12-investmentcapsforstatememberbanksusingNewMarketsTaxCredits,andsimilarcreditswhichwouldallowstatememberbankstomakeadditionalinvestmentinLMIcommunitiesAndasECIPfundsaremadeavailable,regulatorshaveanimportantroletoplayinensuringourexaminersareinformedandknowledgeableabouttheworkbeingconductedunderthesenewprograms.onsiveProductsLastletmeturntotheneedtodevelopproductsthatareresponsivetocustomerneedsAsmanyhavesaid,it’sexpensivetobepoor.Andmanypoorpeoplelackanyfinancialslack,suchassavings,totidethemoverthroughanemergency.Noslackoftenmeansthatasmallproblemcansnowballintolargerones.Asaresult,low-andmoderateincomeconsumersoftenusealternativefinancialservices,suchaspaydayloans,whichcanhelpfillneedsbutareoftenhigh-costandcanleadtodebttraps.Thereisanopportunityfortraditionalbanksandmission-drivenorganizationstofillthisgap,buttobeeffective,theyneedtounderstandconsumerpreferencesandbehaviortoprovideproductsandservicesthatmeettheseneedsinasaferandfairerway.ingwithcustomerpreferenceweknowthatspeedcanbekeyIncomedisruptionandunexpectedexpensesaremorecommoninLMIhouseholds,andquickaccesstoaloancanmakeallthedifference.Withpropersafeguards,unsecuredsmalldollarcredittoconsumerswithless-than-primecreditscorescanbeveryimportantinhelpingpeoplemeetthisneed.31Wehaveseenbanksbeginofferingsmalldollarloanstosomeexistingcustomersbyfactoringaccountdataintotheprovisionofcredit.Now31InMay2020,theFederalReserve,workingwithotherregulators,issuedtheInteragencyLendingPrinciplesforMakingResponsibleSmall-DollarLoanstoencouragelendingtosmallbusinessesandconsumers/newsevents/pressreleases/files/bcreg20200520a1.pdf.-13-thereisagrowingnumberofadditionalbanksinthisspace.Theseproductsaretypicallyavailablethroughthebank’sonlineinterface,whichstreamlinestheprocessandspeedsupdecisionsAlthoughsomeofthesemaybeconsideredhigh-costproducts,theyarestilllesscostlythanpaydayloansorthecostofwhatmanybankschargeforoverdraftprotection.Asanoperatorandregulatorofpaymentsystems,theFederalReservealsohasaroleinfasterpayments.We’reworkingtolaunchFedNow,which,oncewidelyadopted,willbetterenablebankstooffercustomerstheabilitytosendandreceivemoneyimmediatelyatlowcost.Wecanalsomakeadifferencebyupdatingourrulesoncheckclearancesothatconsumersandsmallbusinessesstillreceivingcheckshaveaccesstotheirfundsinatimeliermanner.Andofcourse,weneedstrongconsumerprotectionsinplacesothatconsumersdon’thavetoworryaboutmakingpaymentsinasafeway.TheBankOninitiativehasbeenhugelysuccessfulinbothidentifyingbankaccountfeaturesthatmeetcustomerpreferencesandgettingthoseaccountsintothehandsofconsumersStronglyrecommendedfeaturesincludelowminimumbalances,nooverdraftfees,robusttransactionoptions,andonlinebillpay.32Morethan46,000banksandcreditunionbranchesacrossthecountrycurrentlyofferBankOncertifiedaccounts,andmorethan5.8millionBankOn-certifiedaccountswereopenandactivein2021.3332BankOnNationalAccountServices,2023-2024.CitiesforFinancialEmpowermentFund:BankOn/wp-content/uploads/2020/10/Bank-On-National-Account-Standards-2021-2022.pdf.33BankOnAccounts.BankOn/accounts/andTheBankOnNationalDataHub:Findingsfrom2021(2022).FederalReserveBankofSt.Louis.HY