FinLab, a 5-year initiative managed by the nonprofit Center for Financial Services Innovation and JPMorgan Chase, is now in the home stretch for accepting startups and entrepreneurs into their third cohort. Of the hundreds of startups who will apply, nine winners will be selected and receive a combined investment of $2 million. This year, FinLab is seeking startups who are focused on improving American’s financial health.
According to a recent CFSI study, they found that 57 percent of households were struggling with their financial health, and that underserved Americans spent $141 billion in fees and interest to meet their financial needs. That is a lot of money these consumers will never see again, and FinLab plans to incubate and accelerate nine startups who are dedicated to solving a component of this issue.
With only hours left until the application deadline, FinLab will be looking for fintech companies, tech startups, and innovative non-profits. To date, they have already brought in 16 traditional startups and two nonprofits in their initial cohorts, with $4.5 million invested among them. Beyond their goal of financial health this year, the startups they will specifically be looking for companies developing financial solutions for minorities, the differently-abled, seniors, and low-income women.
“Technology can help us reach overlooked populations with more affordable and convenient financial products and services that can promote financial health,” said Colleen Briggs, the Executive Director of Community Innovation at JPMorgan Chase to BusinessWire. “But to unlock this potential, we want to see more innovators who understand these communities and are designing solutions that meet their needs and preferences.”
Each selected company will receive $250,000 in capital, plus resources such as corporate partnerships, mentoring, peer learning, and networking. Of the two completed cohorts, the companies have raised a combined $120 million since joining FinLab, and have amassed more than one million users.
The deadline to apply for this round is Thursday, April 27 at midnight.
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