JPMorgan Chase Makes $125 Million, Five-Year Global Investment in Financial Health
May 15 2019 - 9:00AM
Business Wire
Investing in fintech solutions and financial
coaching to help underserved communities increase savings, build
credit, reduce debt and achieve their financial goals
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:
Building credit
- 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.
Increasing savings
- 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 financial shocks.
- 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 building savings.
Reducing debt
- United Way Miami Dade County:
$300,000 commitment to help women in Miami reduce or
eliminate their debt to become crisis resistant.
- 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 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 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.
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Media Contact:Amalia Kontesiamalia.kontesi@jpmchase.comMaribel
Ferrermaribel.ferrer@chase.com
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