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CBA Reiterates Opposition To Postal Banking Pilot Program
The Consumer Bankers Association (CBA) today sent a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy reiterating strong opposition to the “Postal Non-Banking Financial Services Modernization Pilot Program,” a proposal slated to be considered this week as part of the 2023 Appropriations Act that would threaten the safety and competitiveness of the consumer financial market.
The American financial system is among the most well-regulated and highly complex in the world. As CBA states in the letter, banks have the expertise and capacity to serve customers’ needs in a manner the post office would find difficult:
“Effectively and safely providing these services requires an institution to have decades of experience in risk management, regulatory compliance, consumer protection, and privacy protection – areas the U.S. Postal Service has little to no knowledge.”
Not only would the entrance of a government-subsidized entity into the banking landscape affect the competitiveness of the nation’s thousands of financial institutions, it would also expose American taxpayers to risk. Instead, CBA goes on to say, policymakers should encourage more bank innovation as an effective and efficient way to expand consumer access to the financial services ecosystem:
“Improvement in the delivery of safe and innovative products and services has the potential to serve many Americans that are underserved. Advances in innovation of financial services will drive financial access and promote inclusion for those who struggle finding mainstream financial services.”
To read the full letter, click HERE.
- CBA long has opposed the introduction of government-subsidized entities into the consumer banking marketplace and last year sent a letter to the House Committee on Appropriations outlining opposition to the postal banking pilot program when it was first introduced. To learn more, click HERE.
- In May 2021, CBA and other leading financial trades released recommendations policymakers should consider for expanding financial inclusion and banking the unbanked. To read these recommendations, click HERE.