JPMorgan Chase has announced a five-year, $125 million commitment to improve the financial health of underserved communities.
Part of the company's efforts to drive economic opportunity in cities around the world, the initiative will partner with community organizations to identify, evaluate, and expand financial technology solutions and coaching programs that help people increase their savings, build credit, reduce debt, and achieve their financial goals. According to the World Bank, more than one billion adults globally struggle to manage their financial lives. In the U.S., recent research from JPMorgan Chase and Morning Consult found that more than 20 percent of Americans are not saving on a monthly basis, while more than half (52 percent) do not have enough money saved or on hand to address a $500 emergency.
The investment by the global financial services firm is intended to help address these issues in underserved populations — including low-income women, immigrants, people of color, and seniors — by supporting the creation, testing, and enhancement of innovative fintech tools that address their unique financial needs. The funds also will support the development and expansion of financial coaching curricula and other resources that can help people weather unexpected emergencies and meet their long-term financial goals, from building credit to buying a home.
To that end, the company has awarded or committed $1 million to establish a mission asset fund in support of loan product offerings that help small business owners and immigrants improve their credit and gain access to the financial system; $500,000 to Catalyst Miami to help low-income households in Miami learn how to build savings; £590,000 ($800,000) to the London-based Learning and Work Institute in London to help low-income households manage financial shocks and avoid debt; and $600,000 to the International Rescue Committee in support of financial coaching and affordable small-dollar loans for refugees and immigrants in San Diego, Los Angeles, Salt Lake City, and Oakland.
"Helping more communities access the tools 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 JPMorgan Chase's head of community innovation Colleen Briggs. "Through this effort, we will test and scale promising financial solutions to support the prosperity of households and communities around the world."
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