SpringFour and Elevate have announced the findings of a research study examining the financial effects of the COVID-19 pandemic on American households. The study found that the pandemic’s impact on American households was uneven, and that those who struggled require support beyond what traditional financial institutions provide.

According to a study by SpringFour and Elevate, the pandemic’s impact on American households was uneven, and those who struggled require support beyond what traditional financial institutions provide. Millions of Americans of all income levels are looking for resources to help them pay for basic needs – with banks’ and financial institutions’ customers requesting more than 5 million referrals for vetted financial resources, including food assistance, employment support, and prescription savings since the pandemic began.

SpringFour, the only social impact fintech platform that helps financial institutions
give customers the support they need to regain financial control, today announced its new partnership with Accion
Opportunity Fund, the nation’s leading nonprofit Community Development Financial Institution (CDFI) to small
businesses. SpringFour also announced the launch of Small Business Support resources to help small business
owners find the financial and operational support, and relief grants, loans, and other direct financial assistance.

SpringFour CEO Rochelle Gorey authored an op-ed for American Banker: “The case against returning to normal.” In the article, she describes the enormous opportunity that banks have to continue to prioritize their customers’ financial health, and how they can do so. Here’s an excerpt:

“There is much help available now, but customers may not know that help exists or whom to trust. Financial institutions are in the right place to provide all of the financial services that people need, including access to these resources. This will benefit customers and institutions alike — increasing repayment rates and securing a positive relationship with their customers when these resources provide the support they need…We all do well when we do good. We don’t have to return to normal — we can decide to be better and do right by our customers. It’s a win-win for all.”

As seen on Global Banking and Finance Review: In the wake of climate change disasters and social unrest in response to racial inequality, many companies are ramping up their environmental, social and governance (ESG) programs to become better corporate citizens with a positive impact on customers and community. Katy Jacob, VP of Research & Impact at SpringFour, encourages more financial institutions to ramp up their ESG programs by creating products and services that improve the long-term financial health of their customers.

Amid the financial strain of COVID-19, Avant, a financial technology company that gives middle-income consumers access to the credit they deserve, partnered with SpringFour to help their customers locate much needed financial resources. As a result, customers were increasingly able to make repayments on time, and Avant strengthened its relationship with its customers. In our short interview with Avant’s team, we explore what led to this partnership, the benefits to Avant and its customers, and how this work fits into Avant’s COVID-19 response and beyond.