By Karen Petrou
- Transaction and savings accounts are critical to financial security and inter-generational economic equality.
- Nonbank offerings might increase financial inclusion, but pose risks to safeguarding savings, personal privacy, and consumer protection unless or until consumer-finance standards symmetrically apply to banks and nonbanks offering like-kind products to vulnerable households.
- Public-utility, postal, or CBDC alternatives to bank accounts are a long way off and may not effectively safeguard high-risk households.
- Expanding low-cost, no-risk bank accounts is a critical near-term policy option.