Investing in fintech solutions and financial coaching to help
underserved communities increase savings, build credit, reduce debt and
achieve their financial goals
NEW YORK–(BUSINESS WIRE)–JPMorgan Chase today announced a $125 million, five-year global
commitment to improve the financial health of underserved communities.
Through collaboration with community organizations, the investment will
also help inform the development of products and services that can make
banking more accessible to more people.
The new philanthropic investment is part of JPMorgan Chase’s efforts to
drive economic opportunity in cities across the world. The bank will
identify, evaluate and help expand fintech solutions, and financial
coaching programs to help people increase their savings, build credit,
reduce debt and achieve their financial goals.
“When we create opportunities that make prosperity possible for more
people, we become stronger as a country,” said Thasunda Brown Duckett,
CEO of Consumer Banking at Chase. “Our firm is being intentional in our
approach by bringing together our people, our products and branches, our
digital tools, and our community investments so we can serve everyone,
including those who need it most.”
$125 million investment in our communities
According to the World Bank’s Findex,
more than 1 billion adults across the world struggle managing their
financial lives. In the U.S., new
research from JPMorgan Chase and Morning Consult found that:
- More than 1 in 5 Americans are not saving on a monthly basis.
52 percent of Americans do not have enough money saved or on hand for
a $500 emergency.
This is in line with findings from the JPMorgan Chase Institute that most
households do not have sufficient liquid assets to weather 90
percent of income and expense fluctuations.
The $125 million investment will help tackle these issues for
underserved communities – including low-income women, immigrants, people
of color and the aging – by supporting the creation, testing and
enhancement of innovative fintech tools that address their unique
financial needs. In addition, it will support the development and
expansion of proven financial coaching and just-in-time resources that
can help people weather unexpected emergencies and meet their long-term
financial goals – from building credit to buying a home.
“Good financial health is a key component of creating economic
opportunity for residents,” said Clarence E. Anthony, CEO and Executive
Director at National League of Cities. “The investment JPMorgan Chase &
Co. is making in underserved communities will support local leaders’
efforts to build more financially resilient and inclusive cities.”
Examples of new philanthropic investments include:
Mission Asset Fund: $1 million philanthropic investment to
expand loan product offerings that help small business owners and
immigrants improve credit and enter the financial system.
EARN: $1 million philanthropic investment in EARN to expand
SaverLife, a national savings platform that helps low-income
households build the financial cushion that they need to weather
Catalyst Miami: $500,000 commitment to help low-income
households in Miami be financially resilient – especially in
the face of unexpected, climate-related events, like hurricanes – by
United Way Miami Dade County: $300,000 commitment to help women
in Miami reduce or eliminate their debt to become crisis
Learning and Work Institute: £590,000 (approximately $800,000)
commitment to help low-income households in London manage
financial shocks and avoid debt.
Meeting mid- and long-term financial goals
Compass Working Capital: $500,000 commitment to help public
housing residents in Boston – predominantly women – reduce debt
in addition to building savings and improving their credit scores.
International Rescue Committee (IRC): $600,000 commitment to
offer refugees and immigrants in San Diego, Los Angeles, Salt
Lake City and Oakland financial coaching and affordable
small-dollar loans to meet their goals, such as accessing education or
starting a business.
“Financial health is foundational to every dream realized,” said José
Quiñonez, CEO of Mission Asset Fund. “JPMorgan Chase’s leadership and
investments to help new Americans improve their financial lives ensure
that everyone has the opportunity to fulfill their economic potential,
live their dreams, and contribute their part in making America better.”
“Helping more communities access the tools that they need to manage
their financial lives and meet their goals is a critical component of
ensuring that more people benefit from economic growth,” said Colleen
Briggs, Head of Community Innovation at JPMorgan Chase. “Through this
effort, we will test and scale promising financial solutions to support
the prosperity of households and communities around the world.”
Supporting the financial needs of our customers
Over the past five years, the firm has been working with 250
organizations globally to create paths to financial health, including
new savings products and models. Insights from these efforts are helping
inform new products and services at Chase, and the bank’s market
Some examples include:
Autosave: A digital tool that has helped customers save more
than $160 million to date by saving automatically, regardless of the
Chase Secure Banking: A low fee checking account that can help
those new to banking or who have had trouble keeping an account in the
past. The checkless account comes with no overdraft fees, the ability
to make electronic payments and full access to Chase branches, ATMs
and digital tools. Secure Banking can help customers avoid check
cashing and other costly alternative services. Thousands of customers
across the U.S. are already benefiting from its features.
Credit Journey: A free digital tool that is helping more than
15 million people monitor their credit – whether they are a customer
or not – providing instant access to their credit score, and
information on how different actions can impact it.
Branches: 30 percent of new branches are in low- and
middle-income neighborhoods. In addition, Chase has rolled out Chase
Chats – workshops and informational sessions at branches around
the country focused on everything from budgeting, saving and
retirement, to starting a business.
A history of advancing financial health
Over the last five years, JPMorgan Chase committed over $100 million to
250 nonprofit organizations and research institutions across the world,
helping 7 million people improve their financial health and save more
than $1 billion.
The bank has been collaborating with U.S. organizations like the
Financial Health Network (formerly the Center for Financial Services
Innovation), Neighborhood Trust Financial Partners, National League of
Cities and MyPath. Globally, the firm has been working with
organizations like the Indian Institute of Management Ahmedabad’s Centre
for Innovation Incubation (IIMA-CIIE), BFA and the Learning and Work
Institute in the UK.
It has also been leveraging the expertise and time of its employees to
help maximize the impact of its philanthropic investments on the
financial health of communities with over 3,000 employees having
volunteered more than 34,000 hours.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services
firm with assets of $2.7 trillion and operations worldwide. The Firm is
a leader in investment banking, financial services for consumers and
small businesses, commercial banking, financial transaction processing,
and asset management. A component of the Dow Jones Industrial Average,
JPMorgan Chase & Co. serves millions of customers in the United States
and many of the world’s most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands. Information
about JPMorgan Chase & Co. is available at www.jpmorganchase.com.