Financial Solutions Lab: Innovating To Improve Financial Health

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Introduction

Investing in Innovative Financial Health Solutions

The Financial Solutions Lab (FSL) was built on the belief that technological innovation is key for supporting the millions of Americans who struggle financially. A collaboration between the Financial Health Network and founding partner JPMorgan Chase, with additional support from Prudential Financial, FSL presented a distinctive partnership model to spur financial health innovation. The initiative brought patient capital, deep financial services expertise, and national exposure to entrepreneurs building relevant, engaging, and scalable products to address the biggest financial problems facing consumers. By prioritizing its mission, FSL helped build a market for financial health-focused startups and allowed the solutions it invested in to sustainably grow.

Today, FSL’s legacy provides a roadmap to continue the critical work of advancing financial health. Lessons learned from FSL can guide innovators as they respond to a changing marketplace, from unlocking the potential of AI to serving the needs of the fast-growing older adult population. Above all, FSL reminds us that designing for financial health is not just possible, but necessary, as we work to build a world where all can thrive financially.

FSL by the Numbers

3

major programs

80+

participating fintechs and nonprofits

15+

million people earning low to moderate incomes served

30+

million people served with high-quality financial health solutions

19

research and/or testing projects completed

$3

billion collectively saved

$420

million in avoided fees

$200

million in debt settled

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.

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Financial Solutions Lab Programs

Initially conceived as an innovation platform that included an accelerator for early-stage fintechs, FSL evolved over time to include three programs.

The Accelerator offered capital and resources to fintech entrepreneurs who were working to build and scale fintech solutions for individuals with low to moderate incomes, Black and Latine communities, and other underserved consumers.

The Exchange forged partnerships between nonprofit and fintech providers to put effective financial health solutions into communities’ hands faster.

The Collaborative convened nonprofits, fintechs, government entities, think tanks, financial institutions, and other diverse partners to work together on solutions for unmet financial health needs.

The Lab

Creating Successful, Impactful Programs

Several factors helped to shape FSL’s success, creating momentum across industries to advance financial health.

Cross-Sector Collaboration

FSL’s focus on sparking connections across sectors, especially through the Exchange and Collaborative programs, was transformational for many participants. Fintechs brought fast access to information and scalable products with innovative user experiences, while nonprofits brought a high degree of trust among communities of people who earn low to moderate incomes and the ability to offer financial health support alongside other wraparound services, such as housing and career support. While mainstream institutions initially viewed fintechs as competitors, FSL helped to shift that perception, encouraging many banks and credit unions to see these innovators instead as potential partners.

Commitment to Continuous Learning

The Financial Solutions Lab was a testing ground for financial health innovation and yielded valuable lessons for the broader ecosystem. With a 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. This research allowed FSL to drive greater impact, as its findings were widely disseminated and influenced investors, incumbents, and policymakers.

Equity-Driven Solutions

To deliver effective solutions to historically underserved communities, FSL knew it needed to prioritize investments in entrepreneurs with lived experiences. Over time, the initiative took even greater steps to double down on its DEI commitment. FSL co-hosted dinners and networking events around the country to reach more Black and Latine entrepreneurs, updated its application process to include a stronger focus on DEI, and brought in an external advisor to support portfolio companies in their own DEI journeys. Ultimately, these measures helped FSL select more diverse cohorts while providing opportunities to learn and grow in its equity commitment.

“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

Key Milestones

2014

FSL Accelerator launches and runs annually through 2022.
2017

The Financial Health Network starts the Nonprofit-Fintech Exchange.
2019

FSL formalizes its Learning Agenda to share project and partner insights.
2020

The Nonprofit-Fintech Exchange, now known as the Exchange, becomes a part of FSL.
2020

The Collaborative launches.
2022

80+ organizations have participated in Accelerator, Exchange, and Collaborative cumulatively.

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 illuminated the need for solutions that advance financial health, as well as the commercial viability of serving those most in need: consumers with low to moderate incomes. Beyond expanding banking access, FSL has spurred actors across the ecosystem to solve a range of financial health challenges – both by highlighting the needs of consumers with low to moderate incomes and creating a marketplace to serve them. Inspired by this national conversation, this increased awareness collectively supports marketplace efforts and pressures individual solutions to center consumer needs.

Supporting the Work of Early-Stage Fintech 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. By providing founders with access to capital as well as expert advisors free of charge, FSL enabled them to preserve their own scarce capital during their critical early days.

Beyond the impact of its funding, FSL was an avenue for founders and nonprofit leaders to connect with investors, peers, and strategic partners. Participants valued the opportunity to collaborate with like-minded founders and leaders, who became a trusted support network to support innovation.

Digit and Prism Money were among the FSL participants acquired by Financial Health Network Members. Digit was acquired by Oportun, while Prism Money was acquired by PayNearMe, a former Member.

$1.2 billion

in follow-on funding raised by FSL Accelerator companies

8

companies acquired

55

total investments

New Approaches To Improve Financial Health

Through its programs, 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.

AI-Powered Navigation and Automation

A number of FSL’s portfolio companies were pioneers in using AI in new and novel ways, such as AI-powered chatbots and automated mortgage guidance. With emerging technologies like GenAI continuing to advance rapidly, FSL’s portfolio companies continue to iterate and build even greater personalized experiences for their customers.

Home Lending Pal leverages AI to streamline and improve the mortgage lending process, with a focus on new and underserved homeowners. Key features include automated mortgage guidance, risk assessment and affordability analysis, and smart loan matching.

Credit Building

Subprime or limited credit histories prevent tens of millions of people in the U.S. from accessing credit that can help them secure housing or pursue education. Several FSL portfolio companies have been at the forefront of these challenges, successfully demonstrating that the responsible use of alternative data can unlock new paths to financial health.

Petal was created to help more people access and build credit through its credit cards. It also provides an app where Petal members can access budgeting tools and track their credit scores. In 2023, Petal raised $35 million in funding and spun off its Prism Data business.

Digital Banking

In the early days of FSL, digital banking was still in its infancy, unlike today, where mobile banking apps have become essential tools for managing finances. FSL was fortunate to support some of the earliest innovators who recognized the potential of mobile banking to reach underserved and younger consumers.

Albert is on a mission to help Americans get smarter about money by offering customers a new way to bank, save, and invest. The neobank targets Millennial and Gen Z consumers who can not only access a suite of financial tools, but also text or schedule a video call with a financial expert for advice.

Influencing Incumbent Institutions, Policymakers, and Other Programs

In addition to catalyzing action across the fintech landscape, FSL has influenced incumbent companies across industries to prioritize financial health solutions that meaningfully improve the financial lives of their customers, employees, and communities. FSL also showed that systemic solutions are needed, urging movement on financial health issues via policy.

Improving Lives Through Innovation

FSL participants have touched millions of lives through their innovative solutions and partnerships.

30+

million people served with high-quality financial health solutions

5.3+

million consumers given access to planning tools

2.5+

million consumers provided with access to financially healthy credit solutions

3.9+

million consumers received financial coaching and resources

Work With Us

Take Your Financial Health Solution Further

As the leader of the financial health movement, the Financial Health Network partners with companies to catalyze solutions that drive real change in people’s financial lives. We bring deep industry expertise, powerful measurement and testing capabilities, and an extensive network to help organizations develop financial health innovations that work. Request a consultation with our team to explore how we can work together.

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