FDIC Chair Highlights Agency Efforts to Enhance Banking Inclusion

FDIC Chair Martin J. Gruenberg highlighted agency initiatives to promote inclusion within the U.S. banking system.

In remarks before the Cities for Financial Empowerment Fund 2023 Bank On National Conference, Mr. Gruenberg stated that since the launch of Bank On, which aims to enhance economic inclusion within the banking system, "unbanked" U.S. households have decreased by one-third.

Mr. Gruenberg stated that according to a recent FDIC survey, households were motivated to open bank accounts following the early stages of the COVID-19 pandemic in order to receive their "Economic Impact Payments" from the federal government.

Mr. Gruenberg said the same survey found that unbanked households were more likely to use nonbank online payment services in the manner that they would use a bank account. Mr. Gruenberg emphasized that consumers should have the most confidence in keeping their money safe by using an FDIC-insured bank account. To further consumer confidence in FDIC-insured accounts and in response to mobile banking being a common primary method for banking, Mr. Gruenberg also mentioned a recent FDIC proposal to clarify advertising requirements for banks regarding deposit insurance.

Mr. Gruenberg highlighted several other FDIC initiatives to strengthen banking inclusion, such as (i) engaging with consumers directly to explain the benefits of opening a bank account and (ii) connecting financial institutions with new products and partnerships to address the needs of underserved consumers.