Tuesday
March 26
2019

U.S. Democrats push financial inclusion as 2020 election race heats up

By Pete Schroeder, Anna Irrera

Boosting access to the U.S. banking system is emerging as a prominent theme as Democrats tap discontent over income inequality ahead of the 2020 presidential election.

Following the 2008 financial crisis, many banks pulled back from their poorest customers. The shift has had lasting costs for millions of Americans now struggling to access mainstream financial services such as checking accounts and credit cards.

Ten years later, Democrats, driven by progressive firebrands like Senators Bernie Sanders, Elizabeth Warren and Representative Alexandria Ocasio-Cortez, see financial inclusion as a draw for voters.

The three Democrats, along with Senator Kirsten Gillibrand, have advocated for the U.S. Postal Service to provide banking services. Senator Cory Booker has said he wants to ban overdraft fees and Senator Kamala Harris has called for a crackdown on payday lenders.

Photo courtesy of Thomas Hawk.

Source: Reuters (link opens in a new window)

Categories
Finance
Tags
banking, financial inclusion, financial services, government, income inequality, public policy, unbanked