The Treasury Department recently published its Financial Inclusion Report, prompting a response from the American Financial Services Association (AFSA). AFSA emphasized the efforts of its members to promote financial literacy and recommended that future work in financial inclusion should involve clear guidelines on artificial intelligence and machine learning.
The report outlines five objectives with recommendations for each. These include promoting access to transaction accounts, increasing access to safe credit, expanding equitable access to savings and investments, improving inclusivity of government-backed financial products, and fostering trust by protecting consumers from illegal practices. Notably, overdraft and late fees were identified as barriers to account opening.
Although the report does not address auto loans or credit cards, it touches on AI's potential role in assessing creditworthiness. The report states: “New analytical developments, such as artificial intelligence and machine learning models, may have the potential to more accurately assess creditworthiness and increase access to credit for consumers. However, these technologies could also potentially exacerbate financial inclusion disparities...”
Regarding education, the report advocates for accessible financial literacy programs using plain language and tailored approaches. AFSA's Education Foundation follows these guidelines with its MoneySKILL® curriculum available in English and Spanish. Since 2002, MoneySKILL has enrolled 1.5 million users.
An evaluation by Dr. Carly Urban from Montana State University revealed significant improvements in students' financial knowledge after completing MoneySKILL courses. This curriculum is linked to increased FAFSA applications in high schools, particularly benefiting students in poverty-stricken areas.
MoneySKILL serves middle school through college students with customizable content vetted by personal finance experts. It meets state-level education requirements and supports educators with scalable resources.
Recognized by the Consumer Financial Protection Bureau and acknowledged by the Treasury Department in past years, MoneySKILL is part of a broader effort by AFSA's Education Foundation to provide free educational resources nationwide. Despite challenges faced during the pandemic, additional tools were introduced to support digital learning.
The foundation acknowledges that while financial education cannot solve all challenges, it remains a crucial element of improving personal finance understanding within communities.