Financial Health Survey of LMI Families

Financial Health Survey of LMI Families

Financial Health Survey of LMI Families

SpringFour, the only social impact fintech that helps financial institutions give customers the support they need to regain financial control, today published the results of its COVID-19 financial health survey, which shares how the pandemic has impacted low- and moderate-income households. 

The insights reveal that the pandemic has impacted families’ ability to cover their monthly expenses and pay for basic resources, including food, prescriptions, and utilities. Households state that they need $4,000 in an emergency fund. Many families are unaware of financial resources that exist to help, but trust their banks to provide financial guidance and support. SpringFour commissioned Competiscan for this survey, which included a nationally representative sample of 105 individuals with household incomes of under $50,000 per year.

A complimentary copy of the report can be accessed here.

“The pandemic has made financial challenges even more acute for low- and moderate-income families. The government’s stimulus payments have not alleviated their financial pressures and many are unaware that local resources exist to help them cover basic needs,” said Rochelle Gorey, SpringFour Co-Founder and CEO. “The good news is that families feel confident in their banks’ ability to help, giving banks the opportunity to step up and meet their clientele’s challenges.”

Key takeaways include:

Unemployment has greatly impacted low- and moderate-income families: 26% have been furloughed, let go, or had their work hours reduced.

Households are facing challenges in making regular payments: 30% of families are unable to cover their monthly expenses completely and on time.

Families expressed concern about covering the following expenses:

70% are not confident that they can set aside money for emergencies.

55% are concerned about paying for basic necessities, like food, utilities, and health care.

40% are concerned about paying their credit card bills on time.

Households expressed a need for financial assistance to cover basic resources, including food (47%), heating/utility costs (47%), prescription savings (40%), health care savings (40%), and home repair (39%). 

Families do not know where to turn for financial assistance. 40% are unaware of local resources to reduce household expenses.

Households want to receive financial guidance and support from their financial institutions: 83% expressed interest in receiving support from their banks.

Families lack the necessary emergency funds. 47.6% stated that they need more than $4,000 in an emergency fund.

Families expect the pandemic to have long-term implications. 41% stated that once the country opens up, their financial situation will not change.  

“Research in the financial health field has long shown that families are one step away from a financial emergency and that they do not have sufficient funds to cover an unexpected expense. The survey results show that a crisis like COVID-19 uncovers the need for long-term, ongoing solutions,” said Katy Jacob, SpringFour Vice President of Research & Impact. “Families know they don’t have enough money saved and they need financial support and specific, targeted resources that help reduce household expenses and create opportunities to save for emergencies.” 

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For more information, download a copy of the report here.

Katy Jacob

VP of Research & Impact, SpringFour

Industry Recognition

                 

 

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SpringFour Partners with Enova to Help Customers Save and Move Forward

SpringFour Partners with Enova to Help Customers Save and Move Forward

SpringFour Partners with Enova to Help Customers Save and Move Forward

At SpringFour, we believe it is essential to recognize the many ways in which our subscribers work to help their customers achieve financial wellness. Since founding our company, our intent was to bring an innovative solution to the table to assist lenders when borrowers were experiencing payment challenges. It’s been exciting to see lenders embrace partnerships that seek to better understand the root cause behind their customers’ financial challenges and adopt the technology that allows them to connect their customers with vetted resources to help resolve the issue creating the payment challenge. SpringFour is proud to be the leading provider for the financial industry that offers vetted financial health solutions for its customers on an entirely cloud-based platform. Throughout the current crisis, we have seen our partners working hard to find unique solutions that can assist their customers. One of the many great examples that highlight this work is SpringFour’s partnership with Enova.

Enova is a state-licensed fintech lender headquartered in Chicago whose simple online application process has helped more than 5 million hardworking people get access to fast, trustworthy credit. Enova and SpringFour began to explore a partnership in October of 2019. As the COVID-19 pandemic intensified in early 2020, Enova wanted to implement resources for customers who might be struggling with the economic impacts of the virus. In addition to finding a credit plan that works best for each customer, Enova knew SpringFour would be an excellent tool for continuing the conversation and providing customers with free and effective solutions. By the spring of 2020, Enova was offering SpringFour resources through its CashNetUSA and NetCredit brands. By partnering with SpringFour, Enova now provides its customers with local resources that help them save on utilities, food, childcare, and more through COVID-19 and beyond. Within the first three months of partnership, Enova customers accessed more than 65,000 SpringFour referrals.

At Enova, Customer First has always been one of our core values. Throughout the COVID crisis, we’ve worked with our customers to expand our flexible payment options and provide our customers with resources to navigate heightened financial insecurity. As part of these efforts, we were thrilled to offer our customers access to SpringFour’s platform of trusted, local resources to better help them stay on track financially through COVID and beyond.

 

– Kelly Jordan, Head of Consumer & SMB Marketing, Enova

Since the start of the partnership, Enova customers have been most interested in finding ways to save on expenses such as utilities, food, and healthcare, as well as finding employment. This trend directly correlates with what SpringFour is seeing from an overall need perspective during COVID-19: families need help accessing basic necessities, and they need that help today. We are proud to help Enova meet its customers’ needs. When lenders think outside the box and provide financial resources that can help get their customers back on track, the impact is powerful — for the company and the consumer.

We are all in this together, and working with Enova is a powerful example of how we can achieve more when we join forces. Helping people in need has always been the mission of SpringFour, and now with the pandemic, we must do more and look to partnerships to scale and expand impact.

 

– Rochelle Nawrocki Gorey, CEO & Co-Founder, SpringFour

Rochelle Nawrocki Gorey

Co-Founder & CEO, SpringFour

Industry Recognition

                 

 

GET IN TOUCH

For all inquiries:
866-732-2246

Chicago Office at 1871
222 Merchandise Mart Plaza Floor 12

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COVID-19 Impact Report Executive Summary

COVID-19 Impact Report Executive Summary

COVID-19 Impact Report Executive Summary

Back to Basics: Providing Resources to Struggling Families

COVID-19 has led to unprecedented levels of unemployment and upsurges in payment delinquencies for households all over the country. May marked the largest one month increase in mortgage delinquencies in history. A third (33%) of Americans have lost income because of COVID-19. An estimated 5.4 million Americans have lost health insurance as a result of job loss during the COVID-19 pandemic. These trends reveal that the safety net in the US is precarious, and families are often one small shock away from financial insecurity or peril. 

SpringFour is in a unique position to help address these issues, as its mission and business model has always been to partner with financial institutions and others to provide specific, local resources to families who need financial assistance. To this end, in late July, SpringFour issued a report of findings related to trends in resource need following the COVID-19 pandemic.

In a matter of weeks following the onset of the pandemic, SpringFour added 3,000+ COVID- specific resources in: Food Assistance; Financial Assistance; COVID-related health resources. SpringFour finds that families are looking for referrals to cover basic needs in light of the pandemic. In Q2 2020, these three new categories accounted for nearly half of all referrals (44%). Employment Services was the third-highest category of need in May 2020. Families are also struggling to pay for basic services such as heating and utility bills – the fourth-highest referral category.

And demand for these resources is exploding. SpringFour has seen a fourfold increase in referrals in Q2 this year versus Q2 of 2019. SpringFour provided nearly 1 million referrals to families in need in Q2 2020 alone, compared to 1.1 million referrals in the year 2019 as a whole. In the first half of 2020, SpringFour has provided over 1.6 million referrals.

Impact of COVID-19 on Referral Demand by Quarter

Unfortunately, the COVID-19 pandemic and its impacts are likely to reverberate throughout the economy and our culture for years to come. But just because the world has changed doesn’t mean that we can’t work together to make people’s lives better. In fact, innovative partnerships are our best bet for lifting up families and businesses during COVID-19 and beyond.

“If something good is to come from this, it’s that companies now understand that most people are just a day away from a financial emergency, and that providing help and assistance is not only the right thing to do — it’s good for business.”

 

– CEO & Co-Founder of SpringFour, Rochelle Nawrocki Gorey

For more information on this report of SpringFour’s research and insights, contact Katy Jacob at katy@springfour.com.

Read the full COVID-19 Impact Report here.

Katy Jacob

VP of Research & Impact, SpringFour

Industry Recognition

                 

 

GET IN TOUCH

For all inquiries:
866-732-2246

Chicago Office at 1871
222 Merchandise Mart Plaza Floor 12

STAY UP TO DATE WITH SPRINGFOUR

A Looming Crisis: Unprecedented Levels of Eviction

A Looming Crisis: Unprecedented Levels of Eviction

A Looming Crisis: Unprecedented Levels of Eviction

The United States might very well be on the brink of an unprecedented eviction crisis, with as many as 23 million renters at risk of losing their homes, and Black and Latinx households being hit disproportionately. The CARES Act, which included a temporary eviction moratorium, stopped protecting renters from eviction on July 31. This moratorium covered more than a quarter of all renters in the country. More than 26% of households have already missed a rent or mortgage payment and have no idea if they will be able to pay their next housing payment on time. Given the fact that the next stimulus bill is currently stalled in Congress, there is no sign that the federal government will be able to stave off an eviction crisis that puts tens of millions of households at risk of homelessness. Eviction causes a cascading series of related social issues, from mental and physical health risks to difficulty enrolling in school to disenfranchisement. In addition to the social costs, the actual costs to the economy are staggering: For the worst-case scenario of 23 million evictions, experts have estimated a nationwide one-year cost of $128.7 billion. Being able to maintain adequate housing is a staple of financial security and financial health, so the effects of this crisis have the potential to be catastrophic.

SpringFour Recognizes the Need and is Working to Help

SpringFour and our Resource Integrity Team have been hard at work to figure out how we can use our expertise to help households in this dire situation. Since the onset of the COVID-19 pandemic, SpringFour has seen a sharp increase in usage of our Rental Resource Category. The Team has added more than 3,000 resources to address financial challenges since the pandemic began. The rental resource category is now consistently in the top five of all categories referred through SpringFour. In fact, we have seen a 48% increase in rental resource referrals in S4Pro since February 2020.  SpringFour has provided over 92,000 referrals to households needing assistance with rental resources since the onset of the pandemic.

Going even further, SpringFour’s data team developed a tenant tip sheet to help end users struggling to maintain adequate housing. This tip sheet, released on July 15th, was referred over 2,200 times in the first 3 weeks. It provides essential information on tenant rights and responsibilities under the CARES Act, provides links to local and state eviction moratoriums, and provides links to tenant advocacy organizations and rental resources available through SpringFour. Tip sheets like these go above and beyond SpringFour’s usual offerings and instead compile tips and resources that can help renters navigate their way through this crisis. Efforts to provide additional rental resources and create the tip sheet showcase the expertise of our incredible Resource Integrity Team, including Kate McCarthy, an experienced housing professional, and Jessica Williams, a talented systems management and operations guru.

For questions on the tenant tip sheet or if you have ideas for additional tip sheets, contact resources@springfour.com.

Rochelle Nawrocki Gorey

Co-Founder & CEO, SpringFour

Industry Recognition

                 

 

GET IN TOUCH

For all inquiries:
866-732-2246

Chicago Office at 1871
222 Merchandise Mart Plaza Floor 12

STAY UP TO DATE WITH SPRINGFOUR