WASHINGTON – Democrats are planning to dramatically step up their focus on improving financial services for underserved communities when they take control of the U.S. House of Representatives in January.
Representative Maxine Waters (D-CA), who is poised to take over the chair of the Financial Services Committee after Democrats won a majority in the House in the mid-terms, is considering creating a subcommittee dedicated to financial inclusion and diversity in the sector, as well as a taskforce to focus on financial technology innovation, Reuters said, citing several sources.
Waters had previously said the issue would be a priority.
"Ranking member Waters is in the process of having conversations with the Democratic members of the committee about the committee’s future structure and seeking their input," Waters' spokesman Eric Hersey said in a statement. "This process has not been completed."
“Financial services lobbyists fear increased regulatory oversight of the sector could stall efforts to loosen stricter regulations put in place following the 2008 financial crisis,” Reuters noted.
Promoting financial inclusion could be good news for fintech firms, credit unions and community banks by opening up avenues for smaller financial institutions into communities that may have been neglected in the past, Reuters said.