CHICAGO–(BUSINESS WIRE)–Today, the Financial Health Network released a landmark report that urges financial services providers to measure the financial health of their customers. The work, which benefitted from the strategic and financial support of MetLife Foundation, equips financial services providers and nonprofits with the tools to better understand the state of their customers’ financial health and their role in improving it.
Financial services is seeing a boon in the growth of consumer-oriented mobile apps and other products that solve salient consumer challenges. This growth in mobile technology could benefit the 57% of U.S. consumers who are struggling financially*. The Financial Health Network sees a marked opportunity for providers to create profitable products that improve people’s financial situations and for the first time is providing them with tools to help measure that.
“Banks, fintech companies, and other providers can position themselves today as leaders in helping consumers solve their financial challenges,” said Jennifer Tescher, President and CEO of the Financial Health Network. “Providers that do this well will be rewarded by their customers, and they will play a crucial role in shaping the industry’s future and the country. It starts with measuring what matters.”
“We are pleased to be able to support this groundbreaking study with a partner like the Financial Health Network who have a track record of creating champions of financial health through four key strategies: informing the marketplace through research and insights, innovating to bring new ideas to market, advising companies on how to build world-class products that promote consumer well-being, and connecting financial services leaders with each other to spur new partnerships,” said Dennis White, CEO & President of MetLife Foundation.
The eight indicators of financial health are:
1. Spending less than income
2. Paying bills on time and in full
3. Having sufficient liquid savings
4. Having sufficient long-term savings or assets
5. Having a sustainable debt load
6. Having a prime credit score
7. Having appropriate insurance
8. Planning ahead for expenses
The Financial Health Network is working closely to identify early adopters to participate in a “beta” group testing how well these indicators work in measuring their own clients’ financial health. A report on the outcomes of that test will be published in 2017.
*”Understanding and Improving Consumer Financial Health in America,” by the Financial Health Network and published on March 24, 2015.
About the Financial Health Network
The Financial Health Network is the nation’s authority on consumer financial health. The Financial Health Network leads a network of financial services innovators committed to building a more robust financial services marketplace with higher quality products and services, specifically for those who are struggling. Through its Compass Principles and a lineup of proprietary research, insights, and events, the Financial Health Network informs, advises, and connects members of its network to seed the innovation that will transform the financial services landscape. For more on the Financial Health Network, go to finhealthnetwork.org and follow us on Twitter at @finhealthnet.
About MetLife Foundation
MetLife Foundation was created in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. Since its founding through the end of 2015, MetLife Foundation has provided more than $700 million in grants and $70 million in program-related investments to organizations addressing issues that have a positive impact in their communities. Today, the Foundation is dedicated to advancing financial inclusion, committing $200 million to help build a secure future for individuals and communities around the world. To learn more about MetLife Foundation, visit www.metlife.org.