Lab to focus on the next generation of
financial technology products
Today the Financial Solutions
Lab (FinLab) at the Center for Financial Services
Innovation (CFSI) with founding FinLab partner JPMorgan Chase &
Co. officially launched its Fourth Annual $3 Million Challenge
(Challenge) to identify fintech innovators and products that can
help improve the financial health of underserved populations in the
U.S. Given the diversity of Americans who struggle with financial
health, in this year’s Challenge, the Lab is particularly
interested in products developed by entrepreneurs of color, women
and people with disabilities, and designed to meet the financial
needs of often overlooked populations.
The FinLab’s continued focus on financial health for another
year reflects research from CFSI which highlights how
financial insecurity remains a barrier to economic mobility for
millions of Americans. Research from the JPMorgan Chase Institute
has deepened our understanding of these problems by highlighting
that the majority of households face significant income
and expense volatility and lack the buffer they need to manage
these swings or unexpected shocks. Not only does this undermine
their financial wellbeing, it can also adversely affect their
health since research shows that households delay
healthcare until they have the means to pay for it.
Applicants to the Challenge are encouraged to share how their
products can help consumers improve their financial health, how
their company or nonprofit will succeed in serving a diverse market
and how their teams reflect this diversity. Despite improvements in
recent years, all-women teams of entrepreneurs received just $1.9
billion of the $85 billion total invested by venture capitalists
last year and only an estimated 3 percent of the venture capitalist
workforce is black while only 4 percent is Hispanic or Latino. The
FinLab believes that diversity among leaders and teams also leads
to more inclusive products and services with the potential to scale
to millions of customers.
Each winning organization will receive $250,000 in capital,
professional services assistance from industry leaders such as
ideas42, IDEO.org and Google, strategic guidance from the FinLab’s
industry-leading advisory council, and resources from founding partners CFSI
and JPMorgan Chase, including the JPMorgan Chase employee
mentorship program.
“We continue to be blown away by the impact that FinLab
companies are having on consumers,” said John Thompson, Chief
Program Officer at CFSI. “The 26 organizations supported by the Lab
so far have cumulatively grown to help more than 2.5 million
Americans improve their financial health — more than 15 times the
consumer base they served before joining the Lab.”
“Technology offers a tremendous opportunity to help us reach
overlooked populations with financial products and services that
can improve their long-term financial health,” said Colleen Briggs,
Head of Community Innovation, JPMorgan Chase. “We want to see more
innovation designed to meet the needs of underserved populations
and teams of entrepreneurs that reflect this diversity. We believe
that the FinLab’s continued focus on inclusive fintech will help us
unlock this potential.”
Applying for the Challenge
FinTech innovators interested in joining FinLab’s fourth year
class can now complete and submit an application
at http://finlab.cfsinnovation.com. The deadline to apply
is April 11, 2018. Winners will be announced on stage at the
EMERGE Forum 2018, held June 6-8 in Los Angeles, CA.
A History of Success
In January, the FinLab celebrated the culmination of its third
cohort of eight fintech innovators. FinLab companies have
represented a wide swath of consumer-focused financial technology
companies, and inform the Lab’s perspective on the developments in,
and state of, the overall market.
To date, the Financial Solutions Lab has supported 26 financial
technology companies offering innovative financial products that
reach over 2.5 million Americans and have seen 15x growth since
joining the Lab. Collectively, FinLab companies have raised over
$250 million in capital since joining the program.
The three FinLab classes to date have included startups
rethinking how to address such issues as expense tracking
(Everlance), savings (nonprofit EARN), planning (Albert), debt
restructuring (Lendstreet), payments management (EarnUp),
robo-advising (WiseBanyan), automatic savings (Digit), income
volatility assistance (Even), access to credit (Nova), and SNAP
benefits management (Propel). One early FinLab company, Prism, was
acquired by PayNearMe, now Handle Financial. More information about
the impact of the first three years of the FinLab can be found in
its recently released Impact Report.
Howard Tischler, co-founder and CEO of FinLab
member EverSafe, said, "We were excited to be part of the
Financial Solutions Lab, and our experience in the program opened
up many doors for us as we work to protect seniors and their
families from financial fraud. During our time in the Lab, we more
than tripled our user base and as we move forward, we expect to
significantly increase the number of older adults and families
protected as a result of relationships derived from the Lab."
"At Nova Credit, we're committed to helping immigrants access
the credit they deserve and be treated as equals," said Nicky
Goulimis, co-founder of Nova Credit, part of the Lab’s 2017
class. "Our participation in the Lab vastly exceeded our
expectations, by not only significantly accelerating our core
business, but also providing us with invaluable access to the
leaders of the financial services ecosystem."
About the Financial Solutions Lab
The Financial Solutions Lab is a $30 million, five-year
initiative managed by the Center for Financial Services Innovation
(CFSI) with founding Lab partner JPMorgan Chase & Co. to
identify, test and expand the availability of promising innovations
that help Americans increase savings, improve credit, and build
assets. The lab will launch a series of competitions to identify
solutions to specific consumer financial challenges. It will
provide incentives for entrepreneurs, businesses, and nonprofits to
enhance financial products and services that address these
challenges and improve consumers’ financial health. For more
information, visit http://finlab.cfsinnovation.com.
About the Center for Financial Services Innovation
(CFSI)
CFSI is the nation’s authority on consumer financial health.
CFSI leads a network of financial services innovators committed to
building a more robust financial services marketplace with higher
quality products and services. Through its Compass Principles and a
lineup of proprietary research, insights and events, CFSI informs,
advises, and connects members of its network to seed the innovation
that will transform the financial services landscape. For more on
CFSI, go to www.cfsinnovation.com and follow on Twitter
at @CFSInnovation.
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 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 atwww.jpmorganchase.com.
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Media:CFSIShannon Austin,
703-338-8813saustin@cfsinnovation.orgorJPMorgan ChaseAmalia
Kontesi, 212-270-2376amalia.kontesi@jpmchase.com
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