JPMorgan Chase has committed $30 million to establish a 'Financial Solutions Lab' that will seek to harness expertise and technology to help consumers improve their financial well-being.
The US bank is collaborating with the Center for Financial Services Innovation on the five-year initiative that will bring together social entrepreneurs and leading experts in technology, behavioral economics and design to improve financial capability.
"Living outside the financial mainstream puts financial security further out of reach for one out of every four American households that rely on high-cost, non-bank services to manage their finances," says Bruce McNamer, chief executive officer of the JPMorgan Chase Foundation. "The Financial Solutions Lab will bring together the best and brightest to identify innovative solutions that help consumers increase savings, improve credit and build assets."
The Lab will host a series of competitions for social entrepreneurs to identify products and services designed to help consumers improve their financial health.
Leading ideas will be supported with capital, technical assistance and third-party evaluation from a team of technology experts, nonprofits and consumer advocacy groups, behavioral economists and academics.
JPMorgan Chase and CFSI have recruited ideas42 and IDEO.org to serve as strategic advisors on the project.
"So far, efforts to address financial insecurity have largely focused on increasing awareness and knowledge," says Josh Wright, executive director, ideas42. "But research has shown the need to identify strategies that help consumers overcome these barriers to promote better financial behavior. By leveraging behavioral insights, we hope to create scalable, sustainable products and services to promote financial security."