How Volatile ARE AMERICANS’ PERSONAL FINANCES
Research from the JPMorgan Chase Institute found that for the majority of U.S. households, monthly income and consumption fluctuate greatly. Changes in taxes, bills, and refunds, months with five Fridays, and year-end shopping all cause volatility in monthly income and consumption.
How does volatility affect households?
How do Americans respond to volatility?
The average household doesn‘t have enough of a financial buffer to weather one month of volatility.
How Can We Overcome Volatility?
Through innovative tools, products and programs, we can help individuals better manage and mitigate their financial ups and downs.
The Financial Solutions Lab, managed by the Center for Financial Services Innovation with founding partner JPMorgan Chase, is working to catalyze the development of technology-enabled tools to help individuals improve their financial health.
It's Expensive to Be Poor
A cruel irony of today’s financial system is that those who can least afford it are the hardest hit with high fees, high interest rates and high risks.
While many banks are now offering core banking services that are safe, transparent and specifically designed to meet the needs of low- and moderate-income consumers, often that isn’t enough. Many people, struggling to pay their bills, turn to payday lenders, check-cashing outlets, pawnshops and other costly alternative financial services. This only perpetuates the pervasive problem: The unfortunate reality is that the less money people have, the more likely they are to spend it on these kinds of services. But a welcome shift is on the horizon. As mobile apps and increased connectivity transform the world around us, innovators are using these tools and resources to tackle the massive problem of financial instability.
By harnessing the power of technology and the energy of entrepreneurialism, new and creative products are coming to market designed to meet the needs of a group of consumers that has too often been ignored.
Identifying, building and scaling these technology-enabled tools is the focus of the Financial Solutions Lab. Launched in 2014, the Lab is a community of startups, technology companies, designers, behavioral economists and nonprofit organizations that focus on identifying, improving and scaling innovative tools. The Lab’s goal is simple: To find solutions that improve the financial lives of hard-working Americans.