A Step Toward Financial Inclusion
For the 14.1 million unbanked or underbanked adults in the US who don’t have easy access to essential financial services, one solution has largely gone untapped: the US Postal Service.
In a new pilot program, the USPS is beginning to offer certain financial services—such as redeeming paychecks for gift cards—at post offices in four locations.
Though the current test program is limited in scale and scope, offering banking services at post offices could be transformative—providing a public, widely available alternative to paycheck-cashing stores and payday lenders that prey on vulnerable populations.
As Roosevelt’s Mehrsa Baradaran wrote last year, “Exclusion is inherent to the historical design of the financial and credit system, a product of policy and institutional decisions shaped by certain industries and beneficiaries.”
To truly increase financial inclusion and create a financial system that works for everyone, she wrote, “we must change the system’s design to ensure democratic access.”
Read more in “Rethinking Financial Inclusion: Designing an Equitable Financial System with Public Policy.”
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