Part of the firm’s $125 million, five-year global investment in fintech solutions and financial coaching to help underserved communities increase savings, build credit, reduce debt and achieve financial goals
JPMorgan Chase announced today that it is investing a total of nearly $1 million in three local nonprofit organizations to provide financial coaching to help women and families increase savings, reduce debt and plan for unexpected events.
United Way Miami Dade County received $300,000 to provide financial coaching to women through its United Way Center for Financial Stability. The program will focus on diminishing or eliminating debt, and the importance of creating a savings plan to become crisis resistant.
In Miami-Dade, 84 percent of single female-headed households with children are in or on the verge of poverty – more than any other type of family, according to the recent United Way ALICE Report.
“We are grateful that JPMorgan Chase continues to invest in the financial resiliency of women,” said Maria C. Alonso, president and CEO, United Way of Miami-Dade. “Our work to financially empower these women is crucial, not only for the wellbeing of their families but also for the success of our community and economy.”
Catalyst Miami received $500,000 to establish worker cooperatives and help low-income households in Miami be financially resilient by building assets and savings, especially in the face of unexpected, climate-related events.
“We are very excited about this investment in our organization and the economic development layer of our resilience initiative,” said Gretchen Beesing, Chief Executive Officer of Catalyst Miami. “Worker cooperatives provide employment, job stability and higher wages, and keep capital within a community – all important features of community-level resilience.”
Hispanic Unity of Florida (HUF) received $142,500 to develop a multi-generational financial coaching program where 100 families – including parents and their children – in Broward County will be offered financial services. They will learn the fundamentals of financial wellness, including how to budget, decrease debt and how to tap into a variety of financial tools and resources.
“In Broward County, 50 percent of working families are economically insecure — they struggle daily to pay for basic needs and most could not weather a financial emergency,” said Josie Bacallao, President and CEO of Hispanic Unity of Florida. “Achieving permanent economic security is a long term process and includes increasing household income as well as asset building. We use a two-generation approach to work with both parents and their children to create personal economic and financial plans.”
These investments are part of JPMorgan Chase’s $125 million, five-year commitment to improve the financial health of underserved communities across the world, which was announced today. Through collaboration with community organizations, the investment also will help inform the creation of products and services that can make banking more accessible to more people.
The philanthropic investment identifies, evaluates and expands fintech solutions and financial coaching programs to connect people with economic opportunity by helping them 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 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, which found that most households do not have sufficient liquid assets to weather 90% 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.
“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
In 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 that experience are helping inform the creation of products and services at Chase, and helping inform the bank’s branch expansion.
Some examples include:
- AutoSave: A digital tool that has helped customers save more than $160 million to date by saving automatically, regardless of the amount.
- Chase Secure Banking: A low fee checking account created for 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. It seeks to help prevent the need for check cashing and other costly alternative services and already serves thousands of customers across the U.S.
- 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 in low- and middle-income neighborhoods. In addition, Chase has rolled out Chase Chats – thousands of workshops and informational sessions at branches around the country focused on everything from budgeting, saving and retirement, to starting a business.