SOURCE: JPMorgan Chase & Co.SUMMARY:
Multi-year effort will help struggling consumers avoid costly payday loans by providing proven, affordable financial solutions
Former First Lady of California Maria Shriver commends JPMorgan Chase for the development of innovative solutions to help customers solve financial insecurityDESCRIPTION:
Washington, DC, September 19, 2014 /3BL Media/ – JPMorgan Chase & Co. today announced a two-year, $35 million commitment to help individuals and families save money, build credit and improve economic opportunities in communities around the world. The grants will provide best-in-class national and regional nonprofit organizations with the resources to help individuals acquire the knowledge, skills and tools needed to promote financial security while avoiding costly services like payday loans or check cashing outlets for assistance.
This commitment builds on the efforts of the Financial Solutions LabSM, a separate five-year, $30 million program developed earlier this year by JPMorgan Chase and the Center for Financial Services Innovation (CFSI), to identify, test and scale innovative financial products and services to improve financial security.
“To successfully manage their daily finances and plan for the future, individuals need more than basic financial literacy,” said Sally Durdan, Executive Vice President and Head of Strategy, Chase Consumer & Community Banking, will say today during the Corporation for Enterprise Development’s (CFED) Assets Learning Conference in Washington, D.C. “They need actionable, well-timed information and sustainable financial products designed around their needs. With this $35 million commitment, JPMorgan Chase will help individuals around the world increase savings, improve credit and build assets.”
The ramifications of financial insecurity go well beyond the individuals who struggle to save money and build credit. According to recent research from the University of North Carolina Center for Community Capital and JPMorgan Chase, financial insecurity reduces worker employability and productivity; increases demand for public services; impedes recovery from the recent recession; and undermines long-term economic growth and productivity.
“The financial insecurity of American families is one of the most commonly discussed societal problems,” said Maria Shriver, former First Lady of California and founder of The Shriver Report. “As we reported in the most recent Shriver Report: 'A Woman’s Nation Pushes Back from the Brink,’ today, more than one in three Americans—more than 100 million people—live in poverty or on the edge of it. This challenge requires new financial solutions, and it’s great that JPMorgan Chase is providing the necessary support to tackle financial insecurity head on.”
To address these challenges, the $35 million grant commitment, some of which is already being put to use by nonprofit organizations, from JPMorgan Chase will focus on three key areas to promote financial security:
- Innovate by investing in the development of affordable, easy-to-use and technology-driven consumer products and services designed to meet consumer needs;
- Expand the availability of these innovative products and services; and
- Inform community partners and providers by sharing best practices to enhance financial capability efforts.
For example, at today’s CFED conference, JPMorgan Chase announced a two-year, $1.75 million grant to support CFED’s Platforms for Prosperity Fund. This new initiative will support the ability of nonprofits to integrate financial capability strategies into existing social service programs, such as workforce training, affordable housing and health care programs. The Fund will help low-to-moderate income individuals become more financially secure and improve the capacity of asset building organizations throughout the country.
Notable Statements of Support
“The funding provided by JPMorgan Chase will allow us to continue our work to build the capacity of nonprofit partners so that they are better able to incorporate financial capability training into their existing programs,” said Andrea Levere, President, CFED. “The value in this integration comes when individuals and families receive targeted financial coaching and products that empower them to not only make immediate, important financial decisions with the support of their community partner, but also gives them the tools they need to make decisions on their own in the future.”
“We’re honored to be the recipient of a $300,000 grant to support an expansion of our goal-based savings platform that incentivizes LMI individuals to save and invest in their futures,” said Nga Chiem, interim CEO, EARN. “This support will help 2,500 new LMI savers open savings accounts and 2,125 individuals save for 6 consecutive months with an average increase in savings of $120.”
“JPMorgan Chase committed $150,000 to enhance MoneyThink’s smart phone app and curriculum to help 11th- and 12th-grade students build better financial awareness, skills and habits in their daily lives,” said Ted Gonder, CEO, MoneyThink. “Together, we're pioneering the future of youth financial capability by helping students translate in-class knowledge into out-of-class behaviors. Chase's support will help serve an additional 2,000 youth through near-peer mentorship and game-based mobile technologies."
“LISC has been granted $1 million by JPMorgan Chase to support the capacity and services of our Financial Opportunity Centers that provide workforce training, financial coaching and access to credit-building products,” said Michael Rubinger, President and CEO, LISC. “Their invaluable support will not only help place 4,200 people in employment; 4,700 people increase their net income; 3,800 people increase their net worth; and 3,800 people increase their credit score, it will also enable JPMorgan Chase to share the best practices we hope to develop through this important work.”
Financial Solutions Lab
The Financial Solutions Lab, developed by JPMorgan Chase and CFSI, brings together leading experts in technology, behavioral economics and design to improve financial capability by developing innovative, technology-enabled strategies, products and services that align with consumers' financial needs. Over the course of the next five years, the Financial Solutions Lab will host a series of competitions for innovators to identify and enhance products and services designed to help consumers improve their financial security.
Innovations identified through the competitions will inform nonprofit services and identify new models to replicate in additional communities. In addition, nonprofit grantees will provide insights on the needs of underserved consumers and effective models that can help guide the Lab.
For more information visit: http://www.jpmorganchase.com/financialcapability
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 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 consumers 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.
KEYWORDS: Finance & Socially Responsible Investment, Business & Trade, JPMorgan Chase & Co, payday loans, Financial Security, Maria Shriver, economic opportunity