According to a report from JPMorgan Chase Institute on income volatility, many Americans -across all income levels- are experiencing significant fluctuations in income and spending. Because numerous households lack the financial cushion to maintain their lifestyles during periods of lower income, they are forced to rely on lenders and check-cashers. Use of these and other alternative services often lead to greater financial insecurity for households, prompting JPMorgan Chase to dedicate $30 million to a five year initiative to build the Financial Solutions Lab.
The Financial Solutions Lab, managed by the Center for Financial Services Innovation (CFSI), inaugurated a $3 million Financial Solutions Lab Competition to serve as a means to find innovative solutions for households to sustain financial security on a tight budget. After evaluating solutions from hundreds of applicants, a panel of judges involved in behavioral economics, financial services, technology and design chose nine solutions supporting household finances. Each innovation was tested on its potential to help families save money, manage bills, reduce debt and access short-term credit.
2015 Financial Solutions Lab Winners:
*”Ascend Consumer Finance reduces risk on current loans and rewards the borrower by lowering interest payments thanks for responsible financial behavior.”
*”Digit is an automated savings tool with that uses an algorithm to move small amounts of money from checking into savings based on spending habits.”
*”Even turns the inconsistent income of hourly and part-time workers into a steady salary by saving money from above average paychecks and boosting low paychecks.”
*”LendStreet is a marketplace-lending platform which helps borrowers reduce their debt and rebuild their credit.”
*”PayGoal is a workplace tool that enables workers to put more wages toward their principal financial goals using a simple, guided mobile experience.”
*”Prism is a comprehensive bill payment and management app that helps people across the country better manage their personal finances by giving them a platform to review, manage and pay their bills for free.”
*”Propel’s technology simplifies the SNAP application process by streamlining enrollment, eliminating paper documents, and providing a phone-friendly mobile interface.”
*”Puddle is a platform for reputation-based borrowing, allowing anyone with a debit card to make small short-term loans to other trusted borrowers.”
*”SupportPay is an automated child support payment platform that enables parents to share child expenses and exchange child support directly with each other.”
After the winners were announced at CFSI’s annual conference by Len Laufer, head of JPMorgan Chase’s Intelligent Solutions team and Jennifer Tescher, president of CSFI; they each received $250,000 in capital and mentorship from JPMorgan Chase Lab’s expert partners offering industry expertise, technical assistance, design insights and more.Â
