Bill Overview
Title: Expanding Opportunity for MDIs Act
Description: or the Expanding Opportunity for MDIs Act This bill establishes the Financial Agent Mentor-Protégé Program within the Department of the Treasury. The program provides participating minority deposit institutions and small financial institutions with mentorship regarding becoming a financial agent for Treasury and improving service capacity.
Sponsors: Rep. Beatty, Joyce [D-OH-3]
Target Audience
Population: People served or employed by Minority Depository Institutions (MDIs) and small financial institutions
Estimated Size: 3000000
- Minority depository institutions (MDIs) are banks and credit unions that are typically owned or directed by individuals of specific minority groups.
- There are approximately 149 MDIs in the United States, serving diverse populations, including African American, Hispanic American, Asian American, and Native American communities.
- MDIs play a crucial role in providing financial services to minority communities, often working in underserved areas.
- By facilitating mentorship and enhancing capacity, this act aims to enable MDIs to function more effectively, potentially affecting the financial well-being of minority and underserved communities.
- The global impact may also concern minority financial institutions in other countries, although this act is primarily US-focused.
Reasoning
- The policy primarily targets Minority Depository Institutions (MDIs) and small financial institutions owned or directed by minority groups, impacting the individuals working within and served by these organizations.
- With approximately 3 million individuals served by MDIs in the US, the policy aims to improve financial access and inclusion by enhancing MDI operational efficiency through mentorship programs.
- The budgetary constraints limit the extent to which all MDIs and their associated communities can be directly impacted; however, improvements in service capacity at MDIs may have a trickle-down effect on the communities they serve.
- By improving MDIs' access to Treasury resources and mentorship, these institutions could offer expanded, more effective, and more inclusive financial services to minority and underserved communities.
Simulated Interviews
Bank Manager (Atlanta, GA)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I believe the mentorship will provide us with the tools and insights needed to improve our services.
- Our community could significantly benefit from enhanced financial services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Software Engineer (Los Angeles, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 10/20
Statement of Opinion:
- I'm hopeful that with improvements, we might get better online banking services.
- Access to better services is definitely needed in our area.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Small Business Owner (Houston, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 12/20
Statement of Opinion:
- Better bank services from MDIs would help my business grow.
- I support any act that helps improve financial resources for minority businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 5 |
Retired (Gainesville, FL)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I hope this policy will make the bank more reliable and community-focused.
- Access and trust are critical elements in banking.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Financial Advisor (Chicago, IL)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- My clients will have better access to financial products if MDIs expand their services.
- Mentorship might offer long-term benefits not just for MDIs, but the whole community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 6 |
Community Organizer (Phoenix, AZ)
Age: 37 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- MDIs are crucial for fostering financial inclusion in minority communities.
- The policy seems promising for expanding opportunities and resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Teacher (New York, NY)
Age: 61 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 6/20
Statement of Opinion:
- This might help the bank offer more competitive rates and options.
- Community banks are vital for our neighborhood.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Freelancer (Portland, OR)
Age: 43 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 11/20
Statement of Opinion:
- I'm interested in how this could improve day-to-day banking experience.
- Expanded services should enhance our overall financial health.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Accountant (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 8.0 years
Commonness: 8/20
Statement of Opinion:
- MDIs could strengthen our clients' financial positioning with the right support.
- A more robust financial sector helps everybody.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Technical Support (San Francisco, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- There are lots of restrictions with current online banking options that could improve.
- More funding and mentorship could lead to innovation and broader services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $15000000 (Low: $10000000, High: $20000000)
Year 5: $15000000 (Low: $10000000, High: $20000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Ensuring effective implementation of the mentorship program is critical to achieving desired outcomes.
- Coordination between the Treasury and MDIs will be essential for program success.
- Monitoring and evaluation mechanisms must be established to assess the program's impact and adjust strategies as needed.
- Cost overruns may occur if the program requirements expand beyond initial estimates.