October 17, 2017
SAN FRANCISCO, CA – EARN announced today it has received $1 million from JPMorgan Chase & Co. to support the launch of a savings platform designed to directly address America’s savings crisis. With half of American families lacking enough savings to cover a $400 emergency, SaverLife combats the negative impact of financial shocks on the lives of consumers by paying users to save their own money, an approach underpinned by financial technology and behavioral science.
Lawreece, an early user, exemplifies the power of SaverLife. For most of her life, it didn’t seem urgent to save money, and so Lawreece never did. That all changed three years ago when she had a son with cerebral palsy. “My number one priority became helping him develop and be independent. I knew that saving would help make that happen,” Lawreece says. But until she found EARN, she didn’t know how to start. “The incentives,” she says, “drew me in. I had endeavored to save in the past, but I hadn’t been successful.” Saving with EARN has totally transformed Lawreece and her family’s life, enabling her to build an ever-growing fund for her son.
SaverLife is designed to support lower-income households in their pursuit of financial security through digital financial coaching, access to resources and a community of users, and small-dollar cash incentives for regularly setting aside savings.
“SaverLife is created for and with the clients we serve, to provide workable solutions to increase this country’s savings rate,” said Leigh Phillips, CEO of EARN. “When EARN saw an opportunity to leverage technology to drive forward a new generation of financial services designed for and with low-to-moderate consumers, JPMorgan Chase stepped up their support to make our dream of a scalable approach to savings a reality.”
Since launching their first online savings platform in fall 2016, EARN has engaged more than 80,000 low to moderate income Americans. With JPMorgan Chase’s support, the new SaverLife initiative aims to improve the financial lives of 500,000 Americans by 2020.
EARN, with the early support of JPMorgan Chase, started investing in financial technology in 2013 with a bold vision to launch a scalable solution to America’s savings crisis. EARN also received capital, resources and mentorship as a member the Financial Solutions Lab, created by the Center for Financial Services Innovation and JPMorgan Chase, which helps identify solutions to specific consumer financial challenges.
“At JPMorgan Chase, we know that promoting savings is critical to promoting the resiliency of households and communities, helping more Americans weather unexpected emergencies and meet their long-term goals,” said Colleen Briggs, Executive Director of Community Innovation at JPMorgan Chase. “By promoting access to flexible savings, we can help improve the aspirations and economic trajectory for low-income households across the country.”
Lawreece says she’s still “amazed how much EARN helped me.” She’d tried other programs, and this “was the one that kicked down the door for me.” Now she tells the young people that she works with that they should always save whenever they can. “Just start with EARN,” she tells them. “Start with six months. Six months will come and go quicker than you can remember.”
“It’s all for my son,” Lawreece says, “He’s the motivation for everything.”