Financial inclusion dropping in 2023, solutions remain
Despite the gradual economic recovery experienced in the United States following the pandemic in 2021, according to the Financial Health Pulse’s 2023 U.S. Trends Report released in September the financial health of Americans declined to pre-pandemic levels while some financial health have actually broadened over the last year and a half.
The FHN Trends Report clarified that between the spring of 2022 and the spring of 2023, while the share of financially healthy Americans did not necessarily change, the share of financially-vulnerable Americans increased to levels not seen since before COVID in 2019.
As the report examined the financial health of over 12 demographic and socioeconomic groups, a few key groups consistently stand out in the cause of financial health in America, particularly when it comes to inclusion and access to mainstream financial institutions. In Key Finding 1 mentioned above, the increased share of financially vulnerable Americans rose to 17 percent in 2023, up from 15 percent in 2022.
“The transient nature of the improvements in financial health observed during the pandemic and the declining financial health of historically marginalized groups is a stark reminder of how crucial it is to maintain a focus on equity when developing products and policies to support financial health,” says Jennifer Tescher, founder and CEO of the Financial Health Network.
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