Can Government-to-Person Payment Partnerships Increase Financial Inclusion?

Black and Latinx people in America are much less likely to be Financially Healthy than White people – a gap that many banks have publicly committed to closing.¹ But while banks provide access to a range of services that can help people build financial health, similar disparities exist among the 6 million people in America who are unbanked, meaning they lack access to a checking or savings account. Around 1 in 10 Black or Hispanic households are unbanked, compared with just 2% of White households.²

Partnerships between banks, fintechs, and governments to deliver government-to-person payments (referred to as G2P payment partnerships) may help bridge these gaps by bringing people into the banking system to receive and manage payments. Yet key questions remain about their effectiveness in fostering inclusion and their feasibility for financial institutions. To help both providers and advocates understand whether to invest in these partnerships, our research identifies key areas for further exploration.

Explore our full report to dive deeper into the major questions and key learning opportunities around G2P payment partnerships.

• • Financial inclusion impact: Do G2P payment partnerships address key barriers to financial inclusion?
  • Feasibility for bank partners: Are G2P payment partnerships a sustainable way for banks to pursue their financial inclusion objectives?
  • The government perspective: What is the feasibility of financial inclusion partnerships for government agencies?
  • Market opportunities: Where within the G2P payments ecosystem do the most promising opportunities for financial inclusion exist?