ATLANTA—Federal Reserve Gov. Michael Barr said financial institutions should move beyond simply expanding access to accounts and focus more directly on whether products are improving consumers’ financial health.
Speaking at EMERGE Financial Health 2026: Scaling Progress, Shaping the Future in Atlanta, Barr said about 96% of American adults now have a bank account, up from 92% 15 years ago, but only about 31% of Americans report feeling financially healthy. That gap, he said, shows access alone does not guarantee that consumers’ needs are being effectively served.
Barr said financial health measurement has evolved from broad surveys such as the Fed’s Survey of Consumer Finances and Survey of Household Economics and Decisionmaking to more granular, real-time tools that use transaction data, behavioral science and artificial intelligence. He noted the Fed’s annual “$400 test” continues to show vulnerability, with 37% of households still unable to comfortably cover an unexpected $400 expense in full.
Barr said banks and other financial firms are beginning to use financial health metrics to design products, monitor outcomes and intervene before consumers face problems such as overdrafts or delinquencies. Institutions offering small-dollar loans, for example, can track whether borrowers build savings buffers, reduce overdraft use and improve credit scores.
But Barr also warned that AI-driven tools and expanded data use must be paired with strong consumer protections, privacy controls and rigorous measurement standards.
“The question is not whether to embrace these tools, but how to ensure they deliver on their promise,” Barr said, adding that the Fed is prepared to support efforts to use financial metrics to design products that put vulnerable consumers first.