Financial Solutions Lab: Creating Next-Gen Tools To Advance FinHealth

Home Fintech Financial Solutions Lab Impact Story

The Opportunity

Investing in Innovative Financial Health Solutions

Technological innovation is key for supporting the millions of Americans who struggle financially. Launched in 2014, the Financial Solutions Lab (FSL) aimed to cultivate, test, and scale solutions with the power to improve financial lives – with a focus on individuals earning low to moderate incomes and historically underserved communities.

As a collaboration between the Financial Health Network and founding partner JPMorganChase, with additional support from Prudential Financial, FSL brought a unique combination of strengths to the table. The Financial Health Network offered deep insight into consumers’ financial needs, while JPMorganChase and Prudential Financial offered the resources and industry expertise to support entrepreneurs. Together, the partners developed a model to bring patient capital, deep financial services expertise, and national exposure to entrepreneurs building engaging and scalable financial health solutions.

Over its nine-year tenure, FSL spurred a new generation of evidence-based solutions, sparked changes across the business and policy landscape, and positively influenced the lives of millions.

FSL by the Numbers

3

major programs

15+ million

people earning low to moderate incomes served

19

research and/or testing projects completed

$420 million

in avoided fees

80+

participating fintechs and nonprofits

30+ million

people served with high-quality financial health solutions

$3 billion

collectively saved

$200 million

in debt settled

The Lab

3 Programs, Millions Served

FSL’s inaugural program, The Accelerator, was built for early-stage fintechs creating financial health-focused products and services. Over time, FSL added two programs: The Exchange, which fostered high-impact partnerships between nonprofits and fintechs, and The Collaborative, which brought together cross-sector stakeholders to tackle consumer challenges that had few existing solutions. Several factors helped to shape FSL’s success, creating momentum across industries to advance financial health.

Cross-Sector Collaboration

FSL sparked connections between fintechs, who brought fast access to information and scalable user-friendly products, and nonprofits, who brought trusted relationships with communities and the ability to offer holistic support. The initiative also fostered connections between FSL portfolio companies and the Financial Health Network’s Member community of financial institutions and major employers, helping to reframe innovators as potential partners for banks and credit unions.

Partnership Spotlight

FSL facilitated an introduction between Wright-Patt Credit Union (WPCU), the largest member-owned credit union in Ohio, and Even (now known as ONE@Work), a startup that helps people manage volatile income and expenses. Within a few months, the two organizations set up a pilot with a dozen Wright-Patt employees aimed at improving their financial health.

Commitment to Continuous Learning

FSL completed 19 research and/or testing projects with participating portfolio companies and nonprofits on topics such as financial health for formerly incarcerated citizens, improving public and private benefits access, and closing racial wealth gaps.

High-Impact Solutions for Consumers

To deliver effective solutions to historically underserved communities, FSL knew it needed to prioritize investments in entrepreneurs with lived experiences. The initiative made progress on this objective by taking steps to reach more Black and Latine entrepreneurs and by supporting portfolio companies in their own journeys supporting underserved communities.

In the final year of the Financial Solutions Lab, 86% of Exchange grantee organizations and 100% of Accelerator portfolio companies were led by women and/or people of color.

Explore the Program

Interested in learning more about the Financial Solutions Lab? Go deeper into the past programs, participants, and content at the link below.

Explore More

The Impact

Far-Reaching Financial Health Outcomes

By demonstrating that technology can drive responsible, profitable, and effective financial health products, FSL has created an enduring influence that continues to resonate across financial services, policy, and beyond.

Increasing Awareness of Consumer Needs

FSL demonstrated both the need and commercial viability of serving people living on low to moderate incomes. The initiative spurred actors across the ecosystem to solve a range of financial health challenges – supporting innovation across the marketplace and encouraging individual solutions to center consumer needs.

Nova Credit, in partnership with international bank HSBC, launched the world’s first Credit Passport, giving immigrants a headstart on credit building by compiling relevant cross-border financial data.

Supporting Early-Stage Founders

Many participants noted that FSL’s funding was the most valuable resource they received – both because of the initial infusion of capital and because it signaled their credibility to other investors to marshal future fundraising efforts. Beyond the impact of its funding, FSL was an avenue for founders and nonprofit leaders to connect with investors, peers, and strategic partners.

$1.2 billion

in follow-on funding raised by FSL Accelerator companies

8

companies acquired

55

total investments

Catalyzing New Approaches to Improve Financial Health

FSL catalyzed solutions that cover a range of needs across a person’s financial life, from building credit for the first time to saving for the future. Participating companies created AI-powered tools to deliver personalized user experiences, experimented with innovative credit-building approaches, and paved the way for an evolution in digital banking.

Digit, which was acquired by Oportun in 2021, offered AI-powered budgeting and savings tools to help customers save over $1 million per month in overdraft fees.

Bee, a neobank focused on reaching the unbanked community, highlighted the opportunity to serve consumers earning low to moderate incomes through alternative banking models.

Fintech startup Esusu’s payment history portal streamlined the process for property managers and tenants reporting rent payments and utility bills directly to credit bureaus, providing an essential backbone for establishing good credit.

Influencing Institutions and Policymakers

Beyond its impact within the fintech sector, FSL spurred businesses to prioritize the financial health of their customers, employees, and communities. The initiative also underscored that systemic action is needed on these issues, helping to drive policy interest in advancing financial health.

Amazon, Ocean Spray, and other large and small employers partnered with Brightside, Canary, and other FSL portfolio companies to provide emergency savings solutions to their workers – many with the help of leading payroll provider ADP.

Propel was recognized by the White House for its impact on Child Tax Credit and Earned Income Tax Credit recipients, as well as Medicaid renewals.

“The Financial Solutions Lab was instrumental in helping us grow our business and providing the expert insights we needed to expand our solution to more underserved consumers.”

Jimmy Chen, Founder and CEO, Propel

See the full ecosystem of fintech product innovation, programming, and policy proposals generated by a near-decade of FSL successes in our full report.

Read the Report

Work With Us: Creating Lasting, Effective Change

As the leader of the financial health movement, the Financial Health Network brings deep industry expertise, powerful measurement and testing capabilities, and an extensive network to help organizations across sectors develop and distribute financial health solutions. Work with us to drive meaningful change and make a lasting difference in the lives of many. To learn more about our current programs and partnership opportunities, visit finhealthnetwork.org.

Explore Partnership Opportunities