JPMorgan-Backed FinLab Opens Applications for Startups
JPMorgan Chase has announced a $3 million year-two challenge for technologically innovative startups, in conjunction with the Financial Solutions Lab (FinLab) at the Center for Financial Services Innovation (CFSI).
The firms said in a press release that the $30 million five-year program, through a virtual lab initiative, has “financial shocks” as the theme this year. FinLab is looking for innovative companies that provide solutions that dovetail with the CFSI’s Consumer Financial Health Survey and other financial research, including a Pew Charitable Trusts study that notes that 60 percent of Americans experienced a financial shock in the past year. Only six out of 10 households had enough liquid savings to cover a $2,000 unexpected expense.
The release went on to say that the JPMorgan Chase Institute projected that typical middle-income households needed approximately $4,800 in liquid assets to weather shocks but had $3,000 available. As a result of such a thin cushion, noted the research, individuals and families might have to draw down illiquid assets, invade retirement savings, borrow funds or even default on debts that are already outstanding.