Released: December 09, 2019

Consumer Action receives support from Wells Fargo

Funds will allow us to introduce financial technology tools to underrepresented consumers and help them save more

Contact: .(JavaScript must be enabled to view this email address), 202-544-3088

SAN FRANCISCO, CA—Consumer Action announced today it has received a $275,000 grant from the Wells Fargo Foundation to support the scale of integration of FinTech tools into financial inclusion programs using financial training, webinars and mini-grants to assist community organizations in helping low-income and limited-English-proficient consumers improve their financial health.

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 by introducing consumers and non-profit staff to financial technology tools using a human-centered design approach to select FinTech apps/tools for consumers at each site, based on common financial needs self-identified by participants.

“Knowing that many consumers are struggling to build savings, reduce debt and manage their money day-to-day, digital technology and financial tools can help empower households to take control of their finances and improve their financial well-being,” said Darlene Goins, Head of Financial Health Philanthropy for Wells Fargo. “The work being done by Consumer Action and its partners is opening up opportunities for more low-income consumers to access and gain the knowledge, skills, and confidence to make informed financial decisions and achieve their financial goals.”

The goal of the project is to educate financial educators about financial technology (FinTech), 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 fact sheet into Spanish with grant funds.

Ken McEldowney, Consumer Action’s executive director, said that support from Wells Fargo “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.

Consumer Action also received support from Wells Fargo to distribute financial technology tools and educational resources to LMI consumers and measure financial health. The coaches distributed Consumer Action’s FinTech 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. The project is in progress.

*Board of Governors of the Federal Reserve System, “Report on the Economic Well-Being of  U.S. Households in 2018,” May 2019 (PDF)

 

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. Visit the Consumer Action website to learn more about our activities.

About Wells Fargo

Founded in 1852 and headquartered in San Francisco, Wells Fargo & Company (NYSE:WFC) provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,500 locations, more than 13,000 ATMs, and the internet (wellsfargo.com). With approximately 261,000 team members, Wells Fargo serves one in three households in the United States. With its corporate philanthropy, Wells Fargo aims to pave a path to stability and financial success for underserved communities by focusing on housing affordability, small business growth, and financial health, among other local community needs. In 2018, Wells Fargo donated $444 million to nearly 11,000 nonprofits. For 10 consecutive years, Wells Fargo has held the honor of No. 1 in workplace giving by United Way Worldwide. Wells Fargo team members also actively support communities by donating more than 2 million hours of volunteer time in the last year. News, insights and more information on the company’s overall corporate responsibility are available at Wells Fargo Stories and www.wellsfargo.com/impact.