JPMorgan Chase will give $125 million over the next five years to non-profits working around the world to improve the financial health of underserved communities, focusing on the use of fintech tools to help people save, boost their credit and reduce debt.
According to the World Bank’s Findex, more than a billion adults across the world struggle managing their financial lives, while JPMorgan’s own research shows that half of Americans do not have enough money saved or on hand for a $500 emergency.
The banking giant says it wants to help fix this by working with community organisations, identifying, evaluating and expanding the use of fintech and financial coaching to helps underserved communities – including low-income women, immigrants, people of colour and the aging – take control of their financial lives.
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With $125 million earmarked over five years, JPMorgan has already begun picking partners, giving $1 million to Mission Asset Fund, which helps small business owners and immigrants improve credit and enter the financial system.
Earn, a national savings platform, has also been given $1 million, while the Learning and Work Institute in London has received £590,000 to help low-income households avoid debt. The International Rescue Committee has a $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.
“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,” says Colleen Briggs, head, community innovation, JPMorgan Chase. “Through this effort, we will test and scale promising financial solutions to support the prosperity of households and communities around the world.”