Collaboration to address the challenges and opportunities that emerging technologies present to lower- and moderate-income people’s financial lives.
Commonwealth and JPMorgan Chase announced their collaboration to address the challenges and opportunities that emerging technologies present to lower- and moderate-income people’s financial lives. As part of the two-year initiative, Commonwealth will conduct research, understand and document the financial landscape for financially vulnerable people, examining usage patterns of emerging technologies with a focus on how they garner trust.
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Emerging technology is already shaping the financial landscape, and COVID-19 has only accelerated its disruption. 64% of financial services executives expect to become mass adopters of AI and 77% expect AI to be an essential driver across the industry within two years. Lower-income workers are already experiencing barriers to financial services. Commonwealth data shows 43% of lower income workers do not have a savings account. But as fintechs and social impact innovators progress towards folding technology like artificial intelligence (AI) and big data analytics into their products, a major risk exists.
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If the needs of financially vulnerable, lower- and moderate-income Americans are not addressed, our financial system will become even more fractured. But if they are, the financial landscape could shift to include new people and drive widespread financial security and opportunity.
“Emerging technology will play a central role in the post-COVID economy–but the question is, will this hurt or help America’s most financially vulnerable?” said Commonwealth Co-Founder and Executive Director Timothy Flacke. “A time of disruption provides an opportunity to include new people in the financial system–but only if technology is intentionally designed and distributed based on a thorough understanding of the needs and aspirations of these customers.”
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