Restructuring for Inclusion: Rodney Hood’s Announcement at the OCC

In recent news, Rodney Hood, Acting Comptroller of the Currency, unveiled a significant restructuring of the Office of the Comptroller of the Currency (OCC)’s Office of External Relations and Strategic Partnerships. This move underscores the OCC’s commitment to fostering financial inclusion and addressing economic barriers faced by underserved communities.

Financial Inclusion through Collaboration

Speaking at the National Community Reinvestment Coalition’s Just Economy Conference in Washington, D.C., Hood emphasized the need for collaboration and partnership in driving financial inclusion. “This work cannot be done in a vacuum,” Hood stated. By partnering with organizations like the NCRC, the OCC aims to implement a comprehensive strategy to promote equitable access to financial services.

Leadership and Strategy

The newly restructured office will be led by Andrew Moss, who will also serve as the OCC’s national director of Project REACh (Roundtable for Economic Access and Change). “Andrew will be responsible for developing our comprehensive financial inclusion strategy,” explained Hood. This strategy will involve engaging with stakeholders to identify economic barriers, build partnerships, and encourage responsible innovation.

Refocusing Project REACh

Initially established in July 2020 under the Trump administration, Project REACh was designed to convene leaders from the banking industry, business, and national communities to tackle structural barriers to economic success. Under Hood’s leadership, the project will be “refocused” on addressing evolving financial landscapes and ensuring all communities have opportunities for economic mobility.

Key Workstreams for Inclusion

The revised Project REACh will focus on four critical areas:

• Affordable Homeownership: Ensuring more people can access affordable housing opportunities.


• Small Businesses: Facilitating access to credit and resources for small businesses.


• Financial Technology: Harnessing fintech to make affordable credit more accessible.


• Geographic-Specific Efforts: Addressing unique economic challenges faced by specific regions.

Innovations for Consumer Credit

A key highlight of the initiative is its exploration of untraditional methods to determine creditworthiness, particularly for consumers lacking a credit score. “Promising innovations” in cash-flow underwriting are underway, analyzing consumer habits in transactions such as deposits and bill payments.

Several banks are piloting tools to use alternative data in credit underwriting. These efforts promise to broaden access to affordable credit lines by leveraging non-FICO data, showcasing how innovation can expand opportunities through collaboration.

The Road Ahead

Looking to the future, Hood outlined the potential for using fintech to democratize access to credit further, especially for gig workers and entrepreneurs. “This means we need to educate consumers about the opportunities and risks related to digital assets,” Hood noted, emphasizing the importance of informed choices in digital finance.

The strategic restructuring and refocusing of Project REACh highlight the OCC’s active role in championing inclusive financial practices. “The success of this pilot shows how outcomes can be accelerated and expanded through future collaboration and engagement,” Hood concluded, setting the stage for continued progress in this sector.

Conclusion

This bold restructuring of the OCC’s financial inclusion initiatives reflects a strategic response to the evolving needs of underserved communities. By leveraging non-traditional credit assessment tools and fostering key collaborations, the OCC is paving the way for more inclusive economic growth. For stakeholders in the banking and financial technology sectors, supporting these endeavors will be crucial in ensuring widespread financial security and opportunity.