JPMorgan's $25M investment aims to connect underbanked with fintech resources

Dive Brief:

JPMorgan Chase is investing $25 million over the next five years in the Financial Health Network's Financial Solutions Lab, which aims to create fintech tools to help underbanked people increase their savings, reduce their debt and meet their goals, the bank said in a press release Tuesday.
The bank also unveiled a branch in the Harlem neighborhood of New York City that will feature a digital innovation lab. JPMorgan Chase said it's looking to replicate the branch over the next year in six other cities, including Los Angeles and Chicago.
The investment actually represents a decrease from the $30 million the bank gave Financial Solutions Lab five years ago.

Dive Insight:

Continuing its partnership with the Financial Solutions Lab will help JPMorgan Chase extend the goodwill it has developed over the past five years. In that time, the lab has developed tools that have reached 4.5 million people and saved consumers more than $1 billion. Fintech companies have benefited from the mentorship of JPMorgan Chase employees and raised millions of dollars with lab support, according to the release.

"In 2020 and beyond, we'll continue with FinTech accelerator programs while expanding our non-profit-FinTech exchange efforts and exploring unmet consumer needs, particularly for low-to-moderate-income individuals," said Jennifer Tescher, president and CEO of the Financial Health Network.

The Harlem branch's digital innovation lab will test new ways to help consumers online and on their mobile devices and solicit real-time feedback from customers, according to the press release. The branch will also collaborate with Google to hold free sessions to boost residents' online and digital skills by teaching them how to build websites, manage social media and create resumes.

"We will continue to make our branches community destinations, strengthening relationships with community partners and investing in FinTech that can help serve people and their personal financial journey, wherever they are," said Thasunda Brown Duckett, CEO of Chase Consumer Banking.