As President Biden continues to select
The person who fills this role will have a
There are currently
But to keep this mission ongoing, it will require stronger partnerships between financial institutions and fintechs. The future leader of the Office of the Comptroller of the Currency will also play a critical role in this area since the OCC was the first bank regulator to push forward in recognizing fintechs as a part of the banking world — an effort that was supported by OCC leaders of the previous two administrations.
As national banks wait for the next leaders of the OCC, there are a number of efforts that we can work on now. First and foremost, developing high-tech partnerships with CDFIs and MDIs. Not to oversimplify things, but that is something that the industry should already be on top of.
A handful of large
From a regulatory standpoint, initiatives like the
The December coronavius relief bill also provided
The path to building a financially inclusive world involves a concerted effort to address many historic and systemic issues. There’s no simple manual for that type of broad-scale change, but having the right technology in hand is a good first step.
Banks and fintechs should revisit their product roadmaps and reassess their innovation strategies to ensure they are building new technologies that can empower all Americans to get access to vital financial services.
For example,
Another example are initiatives like the Cities for Financial Empowerment’s “Bank On” certified accounts that are public-private partnerships to help drive financial inclusion. Banks and fintechs should continue to join these efforts and help identify the new features and capabilities that would provide more Americans with affordable access to financial services.
Collaboratively, and even hand in hand with regulatory agencies, banks and fintechs must pursue new innovations that can bring underserved Americans into the financial system. And this goes beyond just supporting CDFIs and MDIs. The greater financial industry should also consider the diverse perspectives and technology from minority fintech startups.
According to a recent study by CrunchBase, Black and Latinx tech startup founders have a harder time securing venture capital than their nonminority peers, and have less access to seed capital to “bootstrap” their businesses. Yet, there is a huge need for the services these new Black- and Latinx-driven companies can provide. Just look at
Apple recently launched
Technological advancements have historically created barriers of entry to the economy and industry at large. But the tides are turning to where digital technology is not only affordable, but can be scalable to address systemic problems like financial inclusion.
With the right creative financial partnerships and a new leader at the helm of the OCC, there is hope that technology can ultimately help unite the country, rather than creating a divide between the haves and have-nots.