The American Fintech Council (AFC) has announced its support for the Promoting and Advancing Communities of Color Through Inclusive Lending Act, a bill sponsored by Representative Maxine Waters (D-Calif.). The legislation aims to enhance lending services for low- and moderate-income consumers and communities of color by improving technological capabilities in community development financial institutions (CDFIs) and minority depository institutions (MDIs).
"As we work to address long-standing inequities in financial services, we must support the work of CDFIs and MDIs in serving low- and moderate-income communities and communities of color. Ranking Member Waters’ bill is a significant step toward ensuring these institutions have the technology they need," said Phil Goldfeder, Chief Executive Officer of AFC. "AFC fully supports this legislation, and we are committed to forging fintech partnerships that help drive responsible innovation to promote a more inclusive and equitable financial system."
In its letter to Rep. Waters, AFC emphasized the critical role that CDFIs and MDIs play in delivering essential financial services to underserved communities. The letter referenced findings from a 2024 U.S. Government Accountability Office (GAO) report which noted that many smaller CDFIs and MDIs struggle with outdated technology, limiting their ability to underwrite loans and provide online services. The proposed bill includes establishing a technology grant program administered by the Department of the Treasury to address these challenges.
Oportun, a certified CDFI since 2009 and founding member of AFC, has provided millions of affordable installment loans to help consumers without prior credit scores gain access to the mainstream financial system.
"At Oportun, we are committed to promoting financial inclusion by leveraging innovative technology to empower our members with intelligent borrowing, saving, and budgeting capabilities so they can build a better financial future," said Ezra Garrett, SVP of Public Affairs and Impact at Oportun. "This legislation will further enable CDFIs and MDIs to modernize their technology infrastructure, which is essential to expanding financial access for underserved communities."
"AFC fully supports the aims of the Act, particularly its provisions focused on supporting improvements to the technological capabilities of CDFIs and MDIs through partnerships with fintech companies," wrote Ian P. Moloney, SVP, Head of Policy and Regulatory Affairs in the AFC letter. "These provisions represent a concerted effort to encourage responsible innovation for the benefit of historically underserved communities in a manner that will ensure the long-term viability of these institutions."
AFC is an industry association representing major fintech companies and innovative banks. Its mission is to promote transparency, inclusivity, customer-centricity in financial systems by supporting responsible innovation in financial services.