Tim Scott: Bringing people into financial systems could help bridge racial wealth gaps

Bringing more people into financial systems like banks could be key to bridging racial wealth disparities, Sen. Tim Scott (R-S.C.) told Axios at an event Wednesday.

Why it matters: Scott said a number of people in his home state of South Carolina are “unbanked” — living without a relationship with, or access to, any financial institution.

• “That means that they’re using cash to transact their business,” Scott said, adding that such people are “not able to avail themselves to the entire portfolio that might be available at their financial institution.”

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What he’s saying: “So we want to find ways to encourage that credit invisible or those who are unbanked to become a part of the system so that they and their kids get the benefit from the excellent opportunities that are afforded to people who have that relationship,” Scott said.

• “And we saw that frankly might during the pandemic that having a relationship with their financial institution, especially in small businesses, was really important to getting your PPP loan approved and then forgiven and in record time.”