Treasury's National Strategy for Financial Inclusion: Aligning Workplace Solutions with National Objectives

The U.S. Treasury Department's inaugural National Strategy for Financial Inclusion (NSFI) establishes a framework for expanding access to financial services for underserved communities. With 78% of Americans living paycheck to paycheck and many unable to cover emergency expenses, this strategy provides timely guidance for addressing persistent gaps in financial access.

The NSFI outlines five core objectives:

1. Promoting access to transaction accounts that meet consumer needs

2. Increasing access to safe and affordable credit

3. Expanding equitable access to savings and investments

4. Improving inclusivity of government-backed financial products

5. Fostering trust through consumer protection

The strategy emphasizes expanding access to safe, affordable credit and emergency savings through multiple channels. Particularly relevant are recommendations around Special Purpose Credit Programs (SPCPs) and innovative approaches to help consumers build credit histories and access affordable credit options.

Employer-sponsored small dollar loan programs align well with these objectives by providing alternatives to high-cost credit while helping employees build savings and credit histories. The Income Advance program demonstrates how workplace financial solutions can support the NSFI's goals through partnerships between employers and regulated financial institutions.

The strategy's emphasis on consumer-permissioned alternative data for credit decisions and emergency savings programs creates opportunities for innovative workplace solutions. For example, the NSFI recommends using rental and utility payment history to expand credit eligibility – principles that could extend to employment status to help employees access affordable credit.

Beyond its specific recommendations, the NSFI represents a coordinated federal push to reshape financial service delivery. It provides a framework for expanded public-private collaboration and signals increased focus on innovative solutions from federal regulators and policymakers.

For employers considering financial wellness programs, the NSFI's objectives suggest several design principles, all of which echo the Income Advance loan program design:

• Focus on building both immediate stability and long-term financial health

• Partner with regulated financial institutions to ensure consumer protection

• Incorporate savings components alongside credit access

• Design programs that can help employees establish or improve credit profiles

• Ensure accessibility for financially vulnerable employees

While implementation of Treasury’s national strategy will require coordinated effort from multiple stakeholders, it creates a foundation for expanding financial inclusion and confirms what we believe to be the gold standards of program design. By aligning workplace programs with these objectives, employers can contribute meaningfully to building a more inclusive financial system.

For companies interested in learning more about implementing the Income Advance Program, a time tested, low-cost workplace financial inclusion programs aligned with the NSFI's objectives, we’d love to help! Explore the Rhino Foods Foundation website for resources and guides or feel free to reach out for help!