Released: October 02, 2019

Consumer Action receives support from JPMorgan Chase

Project will introduce financial technology tools to underrepresented consumers and help them save more

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SAN FRANCISCO, CA—Consumer Action announced today it has received a $100,000 commitment from JPMorgan Chase to support the scale of its financial technology innovation and education initiatives to directly address America’s savings crisis and improve financial health for low- and moderate-income (LMI) and underrepresented consumers. With four out of 10 American families lacking enough savings to cover a $400 emergency, Consumer Action is working to combat the negative impact of financial shocks on the lives of consumers. This is being accomplished by introducing consumers and non-profit staff to FinTech apps/tools selected for them using a human-centered design approach based on common financial needs self-identified by participants.

Courtney Hodapp, head of the Office of Nonprofit Engagement for JPMorgan Chase, announced the award at Consumer Action’s 10th annual National Consumer Empowerment Conference in Rosemont, Illinois, on Sept. 17.

“Sound financial health is key to building resilient households and communities,” noted Hodapp. “At JPMorgan Chase, we are pleased to support Consumer Action as part of our $125 million, five-year commitment to improving the financial health of people in underserved communities across the U.S.”

The goal of the project is to distribute financial technology tools to LMI consumers, measure changes in financial health, and help LMI consumers improve their financial health through the use of financial technology tools. Consumer Action will translate its FinTech (financial technology) fact sheet into Vietnamese, Chinese and Korean with grant funds.

Ken McEldowney, Consumer Action’s executive director, said that support from JPMorgan Chase “is crucial in our work to introduce financially vulnerable consumers to financial technology tools and platforms that can help them achieve balance in their financial lives. We find that well designed FinTech tools can provide consumers with new insights and a path to financial health.”

Consumer Action network partners will measure financial health using the CFSI Financial Score® Toolkit Survey. Tools are distributed based on the individual needs of the consumers. Financial coaches and counselors provide financial coaching and/or counseling to consumers while they are introducing the financial technology tools. Coaches and consumers use tools together.

Previously, Consumer Action received support from the Nonprofit-Fintech Exchange, managed by the Financial Health Network with support from the JPMorgan Chase-backed Financial Solutions Lab and the Principal Foundation®, to distribute financial technology tools and educational resources to LMI consumers, measure financial health and create the financial technology fact sheet. The fact sheet introduces consumers to the types of FinTech tools that are available and how the tools can help them budget, manage spending and move forward with their financial goals. It also tells consumers what to consider when choosing an app and how to stay safe when using financial technology apps and platforms.

Over the course of a five-month pilot run by Consumer Action with select community partners, 38 consumers and nine non-profit staffers saved nearly $22,000 through the use of new FinTech apps/online platforms coupled with financial coaching and the use of the Consumer Action FinTech fact sheet. Consumer Action was one of nine grantees in a cohort of pilot partnerships, and our work was featured in the Financial Health Network report “Cross-Sector Solutions: A Guide to Nonprofit-Fintech Partnerships.”

About Consumer Action
Consumer Action has been a champion of underrepresented consumers nationwide since 1971. A non-profit 501(c)(3) organization, Consumer Action focuses on consumer education that empowers low- and moderate-income and limited-English-speaking consumers to financially prosper. It also advocates for consumers in the media and before lawmakers to advance consumer rights and promote industry-wide change.

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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