JPMorgan Chase Commits £1.2 Million to Fair4All Finance to Expand No Interest Loan Scheme for people on low incomes
The firm’s support will help expand loan scheme and pilot financial coaching support for people in vulnerable circumstances across the U.K.
[London, U.K. -- March 17, 2022] – Today, JPMorgan Chase announced a £1.2 million philanthropic commitment to help low-income and underserved communities across the U.K. access affordable loans and build financial resilience. This new commitment will help Fair4All Finance expand its No Interest Loan Scheme (NILS) pilot to a sixth region in the U.K. This scheme, the first of its scale in the U.K., offers a vital financial cushion for people who are unable to access or afford existing forms of credit, but can afford to repay smaller amounts. Today’s new commitment is expected to expand the scheme by a further 3,000 people.
JPMorgan Chase’s investment will also help Fair4All Finance pilot a financial coaching program for some NILS customers. This program will allow customers to keep their payments on track and support them in building their credit history and improving their access to other affordable credit options.
There were nearly 14 million low-income people in the U.K at the onset of the pandemic. COVID-19 has exacerbated existing inequalities affecting low-income and underserved communities, increasing the number of people who would be vulnerable to financial shocks.
“Financial stability is a persistent challenge for many people, especially for low-income families, and far too many people don’t have the financial resources on hand to weather an emergency,” said Stephanie Mestrallet, Head of UK Philanthropy, JPMorgan Chase. “We’re proud to support Fair4All Finance in their work to help people across the UK build financial resilience.”
In 2021, Fair4All Finance secured £3.8 million in funding from HM Treasury, as well as up to £1 million in lending capital from Wales, Scotland and Northern Ireland, matched in England by Fair4All Finance. Fair4All Finance will run the program, with support from Toynbee Hall and Fair By Design.
“I am proud the Treasury is funding the No Interest Loan Scheme pilot which will provide those who are financially excluded the opportunity to access affordable credit to meet unexpected costs,” said John Glen, Economic Secretary to the Treasury. “JPMorgan Chase’s decision to provide philanthropic funding to expand the pilot and provide loan recipients with free, quality financial management advice is very welcome. This is an excellent example of the way the wider industry can support innovative and important initiatives like this, and I encourage other firms to consider doing the same.”
The scheme will work with credit unions, Community Development Finance Institutions (CDFIs), and other regulated not-for-profit lenders who will help administer the loans across communities. Partnerships with local councils, housing associations, and charities are also key to helping serve more people.
‘We’re delighted to receive this funding from JPMorgan Chase. It will allow us to get more essential NILS loans out to people in real need of support and to test the effectiveness of providing additional financial coaching support, to see whether this can further improve outcomes for NILS customers,” said Sacha Romanovitch OBE, CEO of Fair4All Finance. ‘It’s a great example of how funding from a mainstream provider can be used to help customers in vulnerable circumstances. We think this route is an important step in the journey to seeing banks serve this customer group directly.”
History of Investing in Global Financial Health
Three years ago, JPMorgan Chase committed $125 million to advance the financial health of low-to moderate-income and other underserved communities around the world, and to help individuals build their financial resilience and access innovative new tools and services. The firm has supported and collaborated with nonprofit and community partners to help provide new services and drive solutions for a more inclusive economy.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.7 trillion in assets and $294.1 billion in stockholders’ equity as of December 31, 2021. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S. and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com
About Fair4All Finance
Fair4All Finance is a not for profit organisation founded in 2019 to support the financial wellbeing of people in vulnerable circumstances. Funded by dormant assets money for financial inclusion, Fair4All Finance’s mission is to increase the financial resilience of people in vulnerable circumstances through improving the availability of fair and accessible financial products and services.Fair4All Finance has three main priority areas:
- Expanding provision of affordable credit
- Partnering with banks and financial services providers to increase provision of services for people in vulnerable circumstances
- Develop new products and services to address market gaps