Financial insecurity not only destabilizes individual households, but also has far-reaching consequences for communities and the global economy. Improving financial security requires the delivery of relevant, timely information, paired with innovative financial products and services that allow people to turn knowledge into action.

Taking Action

In 2014, JPMorgan Chase launched a global financial capability initiative to help people increase savings, improve credit, and build and protect assets. The Financial Solutions Lab, a $30 million, five-year initiative developed in partnership with the Center for Financial Services Innovation, will identify, test and expand promising innovations to help Americans manage their daily financial lives, withstand emergencies and achieve their long-term goals. In addition, through our Social Finance business, we are channeling investment capital toward market-based solutions to increase financial security among low-income and underserved populations around the world.

55%
55% of borrowers in developing economies use only informal sources of credit
25%
More than 25% of U.S. households rely on costly non-bank services and, as a result, spend the same share of their income on interest and fees as the average household spends on food

2014 Highlights

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Deployed $18 million toward our $35 million, two-year commitment to expand proven financial capability programs with nonprofits globally

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Increased our investments in funds promoting financial capability over the past four years to $28 million of our $63 million impact investing portfolio

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Announced our first Financial Solutions Lab competition in early 2015, focused on supporting solutions to help consumers manage their household finances

At Work In:

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San Francisco

Scaling Innovation to Help Build Credit History

Founded in San Francisco in 2008, Mission Asset Fund (MAF) has turned the tradition of social loans — in which networks of friends and neighbors pool cash to make loans — into a formal Lending Circles Program. Through the program, individuals borrow money from each other at zero interest, and payment activity is reported to credit bureaus, helping participants establish or repair their credit history. With JPMorgan Chase support, MAF is now expanding the program to Chicago, Dallas, Denver, Detroit, El Paso, Houston, Los Angeles, Miami, New York City and Washington, D.C. and is scaling the program through MAF’s mobile-friendly technology platform, LendingCircles.org.

Find Out More

The success of San Francisco-based MAF’s Lending Circles Program has been impressive: On average, participants have increased their credit scores by 168 points — reducing average debt by more than $1,000 in the process — and the default rate is less than 1%.

Financial insecurity is always a critical issue, but even more so now because we are still in the midst of rebuilding the American economy, and many people are still being left behind. The financial industry has an opportunity — and an obligation — to use its expertise to create new ways to encourage people to save, grow their assets and increase their financial stability.”

Marc Morial,
Chief Executive Officer, National Urban League