“Financial Shocks” is the theme for its second-year challenge.
In details, it is seeking innovators providing solutions that allows Americans prepare for financial turmoils which may cause them to draw upon their long-term and retirement savings, sell assets or default on their existing debts.
The importance of this new challenge topic was determined using the Center for Financial Services Innovation (CFSI)’s Consumer Financial Health Survey as well as research from other thought leaders, including a Pew Charitable Trusts study that revealed that 60% of Americans experienced a financial shock in the past year, and that only 6 in 10 households had enough liquid savings to cover a $2,000 unexpected expense. A recent study by the JPMorgan Chase Institute estimated that a typical middle-income household needed approximately $4,800 in liquid assets to sustain monthly fluctuations in income and spending, but had only $3,000 available.
A brief detailing the challenge topic was also released by CFSI, It can be found here: http://bit.ly/ShocksBrief.
FinLab also ended its first-year challenge – focused on solving consumer cash flow issues – with a group of nine FinTech innovators including Ascend Consumer Finance, Digit, Even, LendStreet, PayGoal by Neighborhood Trust, Prism, Propel, Puddle and SupportPay. The lab provided each member with $250k in capital, support from operating partners IDEO.ORG and ideas42, guidance from its advisory council, and resources from founding partners CFSI and JPMorgan Chase.
FinTech innovators interested in joining FinLab can submit an application at http://finlab.cfsinnovation.com before April 7, 2016. The finalists will be invited to pitch their solution to a panel of judges at the EMERGE Forum 2016, held June 15-17 in New Orleans, La.
The Financial Solutions Lab is a $30m, five-year initiative managed by the Center for Financial Services Innovation (CFSI) with founding partner JPMorgan Chase & Co. to identify, test and expand the availability of innovations that help Americans increase savings, improve credit, and build assets.