Bill Overview
Title: Fair Access to Financial Services Act of 2022
Description: This bill prohibits financial institutions from discriminating on the basis of race, color, religion, national origin, or sex, including sexual orientation and gender identity. The bill also provides an aggrieved person with a private right of action for preventive relief.
Sponsors: Sen. Brown, Sherrod [D-OH]
Target Audience
Population: Individuals facing discrimination in accessing financial services
Estimated Size: 100000000
- The bill targets discrimination in financial services, impacting individuals who have been denied access based on race, color, religion, national origin, or sex, including sexual orientation and gender identity.
- Financial services are crucial for managing wealth, securing loans, and numerous other activities essential to daily life, impacting a broad range of demographics.
- Globally, financial inclusion is a major issue, with many people facing discrimination or lack of access due to systemic biases.
- According to the World Bank, around 1.7 billion adults globally are unbanked, many of whom experience discrimination due to the factors listed in the bill (e.g., race, gender identity).
- Demographic data from the US Census Bureau and similar international statistics suggest that up to a third of the population in many countries might directly benefit from non-discriminatory access to financial services.
Reasoning
- The Fair Access to Financial Services Act of 2022 is designed to reduce discrimination in financial services, a significant problem for minorities, LGBTQ+ individuals, and women in the US who have historically been marginalized in financial markets.
- Financial services are essential for economic mobility and wealth building, and lack of access can lead to systemic inequality.
- The policy anticipates improving financial inclusion for approximately 100 million Americans, a third of the population, which could ultimately enhance overall wellbeing and economic productivity.
- Given budget constraints, the effectiveness of the policy will be tied to both the breadth of enforcement and outreach to the affected populations over the first ten years. The assumption is that successful implementation would result in improved scores in the Cantril wellbeing metric for a significant portion of the affected individuals.
- Individuals in low-income brackets and marginalized communities would likely see the highest impact due to increased access to finance, resulting in improved economic opportunities.
Simulated Interviews
Graphic Designer (Atlanta, GA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- I frequently struggle to get approved for business loans because of my credit score, which could be better if I had more opportunities.
- The discrimination I've faced in finance makes it difficult to expand my freelance design business.
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 | 7 |
Tech Support Specialist (San Francisco, CA)
Age: 24 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Being openly non-binary has caused me issues when opening bank accounts in the past.
- I hope that this new bill will lead to more respectful treatment and fairer chances for loans.
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 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Small Business Owner (Austin, TX)
Age: 42 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- It's often hard to secure business funding without collateral, and I think I've been denied unfairly.
- This policy should help entrepreneurs like me get a fair shot at loans.
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 | 8 |
| Year 20 | 9 | 8 |
Retired (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I've observed discriminatory practices while working as a bank manager.
- This policy won't directly affect me as I'm retired, but it gives me hope for change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Investment Banker (New York, NY)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- As someone in finance, I am hopeful this policy will address biases in lending and give more people opportunities.
- As an immigrant, I know the challenges many people face, and this can be a step forward.
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 | 10 | 9 |
| Year 20 | 10 | 9 |
Pastor (Houston, TX)
Age: 47 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- I've seen members of my community turned down for loans they've needed to improve their lives.
- If this policy works as intended, it could be a blessing for our community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 7 |
Nurse (Miami, FL)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Accessing financial aid without discriminatory practices would have made my college journey easier.
- I'm hopeful the policy will make significant changes to assist the next generation.
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 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Construction Worker (Denver, CO)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- I've been treated differently because of my past, and securing loans has been tough.
- This policy might give people like me a second chance financially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 7 |
Barista (Seattle, WA)
Age: 25 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I often get denied for credit cards and loans which I feel is due to my identity.
- This law could change that and help me finally start saving for a home.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Film Producer (Los Angeles, CA)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Getting backing for my films has been harder without connections or when I face bias.
- The bill might level the playing field, making it easier to access creative funds.
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 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $50000000 (Low: $40000000, High: $60000000)
Year 3: $50000000 (Low: $40000000, High: $60000000)
Year 5: $50000000 (Low: $40000000, High: $60000000)
Year 10: $50000000 (Low: $40000000, High: $60000000)
Year 100: $50000000 (Low: $40000000, High: $60000000)
Key Considerations
- The policy addresses critical issues of equity and non-discrimination in financial services.
- Implementation challenges may arise due to the scope and scale of necessary changes in financial institutions.
- Monitoring and enforcement capacities must be robust to realize the policy's objectives.