How the Financial Solutions Lab aims to change how people manage financial volatility and build resiliency for the future.Learn More about Seeding Innovative Solutions to Help Weather Financial Shocks
Across the U.S. and around the world, too many people lack the tools and resources to manage their daily financial lives, whether for unexpected emergencies or to plan for the future. Instead they rely on costly non-bank financial services, such as payday loans or check cashing outlets, resulting in billions spent in fees and interest each year. This destabilizes households and has a negative impact on entire economies. We are committed to supporting efforts to address this global problem.
At the center of this work is the Financial Solutions Lab, a $30 million, five-year initiative managed by the Center for Financial Services Innovation (CFSI) that supports promising innovations that can help Americans increase savings, improve credit, and build assets. The winners of the first Lab competition were announced in June, 2015.
Our approach will tackle these challenges in three ways:
by investing in the development of affordable, easy-to-use and technology-driven products and services designed to meet consumer needs.
the availability of these innovative products and services around the world.
community partners and providers by sharing best practices to enhance financial capability efforts.
The Second Financial Solutions Challenge: Weathering Financial Shocks
A financial shock can come from any angle and at any time, putting consumers in a precarious and difficult position. According to the Pew Charitable Trust, 60% of Americans experienced a financial shock in the past year. 55% reported that that shock made it hard for them to make ends meet. That is why the second Lab Challenge will seek out entrepreneurs who are using technology to help consumers weather financial shocks.
Click here to learn more and apply http://www.cfsinnovation.com
Nine innovative organizations are working to solve cash flow management challenge.Learn More about Can an App Improve Your Financial Health?
As one of the country's leading nonprofits promoting the financial health of Americans, the Center for Financial Services Innovation (CFSI) will manage the Lab in collaboration with JPMorgan Chase and their advisory council, ideas42 and IDEO.org will serve as strategic advisors, and will be instrumental partners in the Lab's design, implementation and capacity to yield sustainable, scalable solutions.
Our International Approach
New organizations around the world are leveraging technology to drive innovation that will more rapidly build a financially-inclusive world. We want to help the field better understand these business models and technologies to improve existing programs, spark additional innovation and serve the needs of global low-income consumers. So we are working with the Catalyst Fund to provide funding and mentorship to early stage financial inclusion social entrepreneurs in emerging markets that offer breakthrough technology innovations to promote financial health globally.
"Living outside the financial mainstream puts financial security further out of reach for the one out of every four American households that rely on high-cost services to manage their finances. The Financial Solutions Lab will bring together the best and brightest to identify innovative solutions that help consumers increase savings, improve credit and build assets."
The First Challenge:
Americans struggle with balancing their household budgets. When bills are due one day, and paychecks come another, consumers are caught in a cycle of debt as they are forced to rely on alternative services like payday lenders or check-cashers to bridge the gap. For more insight on this problem, please visit the JPMorgan Chase Institute and review their first study on income volatility.
The innovators who will help solve it:
Ascend Consumer Finance reduces risk on current loans and rewards the borrower by lowering interest payments thanks for responsible financial behavior.
Digit is an automated savings tool with that uses an algorithm to move small amounts of money from checking into savings based on spending habits.
Even turns the inconsistent income of hourly and part-time workers into a steady salary by saving money from above average paychecks and boosting low paychecks.
LendStreet is a marketplace-lending platform which helps borrowers reduce their debt and rebuild their credit.
PayGoal is a workplace tool that enables workers to put more wages toward their principal financial goals using a simple, guided mobile experience.
Prism is a comprehensive bill payment and management app that helps people across the country better manage their personal finances by giving them a platform to review, manage and pay their bills for free.
Propel's technology simplifies the SNAP application process by streamlining enrollment, eliminating paper documents, and providing a phone-friendly mobile interface.
Puddle is a platform for reputation-based borrowing, allowing anyone with a debit card to make small short-term loans to other trusted borrowers.
SupportPay is an automated child support payment platform that enables parents to share child expenses and exchange child support directly with each other.