A $3 million pot put up by JPMorgan Chase is being split between nine finetch startups that have won a competition aimed at finding ways to help households better manage their money.
The firms came through a field of nearly 300, pitching to a panel of industry experts to win the challenge run by the Financial Solutions Lab (FinLab) and grab $250,000 in capital along with national partnership opportunities, industry expertise and mentorship.
The winners are working on ways to help the third of Americans that face cash flow management problems with tools designed to help save, manage finances, access short-term credit and reduce debt.
The nine are:
- Ascend Consumer Finance, which reduces risk on current loans and rewards the borrower by lowering interest payments for positive financial behaviors, such as reducing debt, decreasing credit card spending and increasing savings.
- Digit, which analyses a user's spending habits and automatically allocates available funds from checking to savings.
- Even, which turns the inconsistent income of hourly and part-time workers into a steady salary by saving money from above average paychecks (in a separate savings account) and boosting low paychecks automatically.
- LendStreet, a marketplace-lending platform which helps borrowers reduce their debt and rebuild their credit, and allows investors to buy the loan at a discount.
- PayGoal by Neighborhood Trust, a workplace tool that enables financially underserved workers to improve the allocation of wages toward their principal financial goals using a guided mobile experience that leverages behavioral insights.
- Prism, a bill payment and management app
- Propel, which simplifies the food stamp application process by streamlining the initial enrollment form, eliminating the hassle of submitting paper documents..
- Puddle, a platform for reputation-based borrowing, allowing anyone with a debit card to make small short-term loans to other trusted borrowers.
- SupportPay, an automated child support payment platform that enables parents to share child expenses and exchange child support directly with each other.
The challenge is the first in a series of initiatives from FinLab, a $30 million programme established last year in tandem with the Centre for Financial Services Innovation to identify, test and expand the availability of services that increase household savings, improve credit, and build assets.