Banking and Finance Law Daily Wrap Up, COMMUNITY DEVELOPMENT—Acting Comptroller Hood unveils ‘Project REACh’ to drive financial inclusion, (Mar 28, 2025)

By Shashi Kant, BALLB, LLM

Hood introduces Project REACh to overcome credit barriers and enhance financial inclusion through affordable homeownership, small business support, and fintech innovation.

At the Just Economy Conference 2025, Acting Comptroller of the Currency Rodney E. Hood delivered a speech underscoring the transformative power of financial inclusion for underserved communities and outlined the Office of the Comptroller of the Currency’s renewed commitment to leveraging innovation, technology, and community partnerships to expand access to affordable banking services. As part of this commitment, Hood introduced Project REACh, an initiative designed to address key challenges in affordable homeownership, small business lending, fintech innovation, and targeted regional development.

Financial inclusion. Hood emphasized that financial inclusion is not merely an economic imperative but a civil rights challenge for our generation. “Financial inclusion is the civil rights challenge of our generation,” he declared, urging innovative thinking among stakeholders to help bridge the gap for underserved communities. According to Hood, a bank account is the critical first step toward achieving financial stability. It opens the door to savings, access to credit, retirement planning, and, ultimately, wealth-building opportunities. “A bank account is a starting point in financial inclusion, not an end point,” he explained, highlighting that basic financial services lay the foundation for long-term economic growth.

Credit access. In his address, Hood highlighted the persistent challenges small businesses and individuals face in accessing credit. He noted that many consumers, particularly those in economically disadvantaged communities, struggle with low savings and limited credit history, which hinders their ability to secure affordable financing; this, in turn, prevents them from building the financial resilience needed to achieve homeownership and long-term wealth. Hood stressed the need for financial products catering to small-dollar loans and policies encouraging banks and federal savings associations to extend credit to those most in need. He pointed out that expanding access to affordable credit is essential not only for individuals but also for small businesses that serve as the backbone of the U.S. economy.

Financial technology. Recognizing the potential of financial technology, Hood discussed how fintech innovations could enhance efficiency and customer service in the banking sector. He explained that fintech tools could help banks analyze customer cash flows and spending habits—critical data for making more informed lending decisions. “The pace of financial technology development means that connecting financial providers with economically disadvantaged communities and further increasing access to affordable financial services knows no bounds,” Hood asserted. He argued that when properly leveraged, these technologies could transform how banks underwrite loans and offer credit products to consumers who lack a traditional credit file.

Community-based programs. Hood also underscored the importance of community-based programs in supporting entrepreneurs and small businesses. Local initiatives, such as small business development centers, community colleges, and community development financial institutions, provide invaluable technical assistance, educational workshops, and personalized consulting services. “Community-based programs play a crucial role in connecting small business owners with the tools, networks, and educational resources necessary for success,” Hood remarked. These programs build essential skills and foster strong local networks, helping drive economic growth in underserved areas.

Project Reach. One of the highlights of Hood’s speech was his discussion of the OCC’s Project REACh—an initiative designed to promote financial inclusion by fostering innovative solutions for economically disadvantaged communities. Project REACh, which stands for the Roundtable for Economic Access and Change, brings together leaders in banking, civil rights, community development, and technology to collaborate on strategies to overcome existing credit access barriers, Hood noted.

Hood provided a concrete example of Project REACh’s impact: “Through REACh convenings, financial institutions developed an affordable credit solution for consumers who were unable to access credit because they lacked a credit file.” This initiative has already established over 100,000 new accounts under the pilot program, demonstrating the tangible benefits of innovative, collaborative approaches, Hood stated. Furthermore, Hood highlighted the promise of alternative data, such as deposit account information, to help qualify credit-impaired consumers. This move could significantly expand access to the regulated financial system.

Four key workstreams. Hood outlined the OCC’s strategic vision for Project REACh, which is structured around four key workstreams. The first workstream, “affordable homeownership,” targets the challenges that disadvantaged communities face in purchasing homes and focuses on developing innovative products to improve credit access. The second workstream concentrates on “small businesses,” enhancing opportunities for small business owners by increasing investments and providing accessible, affordable business capital. The third workstream, “technology,” leverages fintech solutions to expand financial inclusion and educate consumers about digital assets, ensuring that no one is left behind in the digital economy. Finally, the fourth workstream, “geographic-specific efforts,” addresses the unique economic challenges of specific regions by promoting holistic development strategies in collaboration with community lenders such as Minority Depository Institutions and Community Development Financial Institutions.

Collaborative future. To drive these initiatives forward, Hood announced the restructuring of an OCC office dedicated to these efforts. The new Office of External Relations and Strategic Partnerships, led by Acting Chief of Staff Andrew Moss—who also serves as the National Director for Project REACh—will spearhead the development of a comprehensive financial inclusion strategy. “This office will engage with critical external stakeholders to identify economic barriers, build partnerships, promote education, and encourage responsible innovation,” Hood said, signaling a renewed commitment to collaboration and strategic engagement.

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