As the new year approaches, the financial services industry is going beyond providing financial education and are showing up for their customers like never before. 

“Financial education alone is out,” says Rochelle Gorey, Founder and CEO of SpringFour. “People do not need more budgeting apps or reading material about saving techniques — but a combination of both education and tangible, actionable financial assistance resources can go a long way to making a real difference for consumers.”

A quick Google search for “budgeting tips” yields over 2.13 billion results. Looking for a budgeting app? The Apple App Store has hundreds of options to choose from. And yet research from the Financial Health Network shows that the financial health of Americans has dropped to pre-pandemic levels, with an increasing number of people moving toward financial vulnerability. Why, despite increasing access to financial tools and education, are Americans continuing to struggle financially? To put it simply, financial education alone is not enough. 

“Due to global and personal crises alike, individuals are increasingly living paycheck to paycheck and need resources that can help them in real-time and in clear, tangible ways,” Gorey continues. As pandemic-era financial programs become a thing of the past and inflation continues to impact the cost of living, nearly 40% of families in the US report having difficulty paying their bills and other expenses. Additionally, 40% of households say they would only be able to cover expenses for a month or less. Offering quick tips and financial education to these segments may provide a bandaid to help them reframe their financial situation, but what they really need is access to nonprofit and government resources that can truly make a difference in the areas of their lives that matter — food savings, rental assistance, employment services, affordable childcare, healthcare and prescriptions assistance, and more.

Gorey has a vision of the future in which financial institutions help their customers by providing access to financial health resources that can drive true change for consumers. She says, “In 2024, banks and financial institutions must become one-stop shops for their customers’ financial health, providing access to resources that can help them pay their bills and find their financial footing while destigmatizing the financial challenges that more and more people face.”

It’s not a new concept that financial institutions should be providing these kinds of services – 59% of retail bank customers said in 2022 that they expect their financial institutions to help them improve their financial health, and yet very few banks are delivering on that expectation. People want to know their banks care beyond what they’ve seen in the past.

“While in the past, organizations have shared their values by supporting causes through donations and social media statements, customers now want to see how banks’ values directly impact their daily lives. In 2024, customers will increasingly choose banks and financial institutions that adopt empathy-first strategies that increase customers’ financial health and lead to more money in their pockets,” concludes Gorey.

In 2024, the financial services industry is stepping up to the plate and providing consumers with real-world solutions to their very real financial struggles. We can’t wait to see it. 

Phylicia Clifton

Senior Client Success and Impact Manager

CHICAGO, December 14 – Today, SpringFour, a social impact financial wellness fintech company, announced that its partnership with leading credit building company Self Financial has delivered more than 3 million financial health referrals to consumers.

Since the partnership began in 2019, SpringFour has offered Self customers  —- many of whom live paycheck to paycheck  — access to its more than 23,000 trusted local government and nonprofit resources in 665 cities, towns, and metro areas across the United States through S4direct, SpringFour’s digital self-serve product. Recently named a Fast Company “Brand That Matters,” SpringFour enables companies to connect their customers with targeted financial health resources, ultimately increasing payment performance, enhancing brand trust, improving bottom lines, and powering consumers’ financial health and capability.

According to the Federal Reserve Bank of New York’s Center for Microeconomic Data, aggregate household debt balances increased by $228 billion in the third quarter of 2023, with $386 billion in newly originated mortgage debt and an increase of $30 billion in outstanding student loan debt. This challenging economic climate makes access to financial health resources increasingly important for American families. A SpringFour survey of low- and moderate-income families showed that, while 83% of households are interested in receiving resources from financial institutions, only 17% of respondents were aware of where to go to access such resources. 

“The economy is challenging right now, particularly for consumers who are also trying to build their credit. Our partnership with SpringFour enables us to provide resources in addition to credit building to more customers so they can be more financially resilient and reach their goals,” said Julie Szudarek, CEO of Self Financial. 

Over the past four years of the partnership, SpringFour and Self have delivered millions of referrals to Self customers in areas such as food savings, rental resources, heating and utility costs, healthcare savings, financial counseling, and more, helping consumers reduce household expenses and empowering them on their financial health journeys. SpringFour has helped Self meet its customers’ changing needs. In fact, in Q3 2023, Self customers’ demand for student loan counseling resources increased 10% compared to Q2 2023. With access to SpringFour’s robust database of resources, hundreds of thousands of customers have been connected to nonprofit and government resources to aid in the progress of their financial health journey. 

“We are proud to bring SpringFour’s resources to Self customers,” said SpringFour CEO Rochelle Gorey. “Especially in such a challenging economic climate, SpringFour and Self’s shared commitment to empathy-first financial health strategies is helping consumers build credit, increase their options, and power their financial capability. In order for people to improve their overall financial health, comprehensive strategies are needed and our partnership is core to that, helping people access existing resources to reduce their costs and mitigate hardships.”

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About SpringFour

SpringFour, the first-of-its-kind, leading social impact fintech, empowers banks, credit unions, fintech lenders, employers, mortgage servicers, nonprofits, and more to connect consumers with vetted, local nonprofit and government financial health resources — increasing payment performance, adding brand value, driving social impact, supporting financial health, and powering bottom lines. Trusted by Capital One, BMO, M&T Bank, OppFi, KeyBank, Avant, Enova, Oportun, Mission Lane, and more, SpringFour is a Certified B Corporation, WBE, and the only woman-led, social impact fintech creating opportunities for enterprise-wide innovation. SpringFour’s product suite includes an innovative contact center tool, digital self-service models, and API. SpringFour delivered 4.4 million financial health referrals to consumers in 2022 in categories including food assistance, rental resources, heat/utility savings, affordable childcare, employment resources, prescription savings, and more. SpringFour is an award-winning fintech, recently recognized with Fast Company’s 2023 Brands that Matter and Finovate’s 2023 Innovator of the Year. To learn how SpringFour can benefit your organization, visit www.springfour.com.

About Self Financial

Self Financial is a credit-building platform that works to increase economic inclusion and financial resilience through easy-to-use products that make building credit accessible. With no hard credit check to get started, Self’s signature Credit Builder Account and secured Self Visa® Credit Card issued by its partner banks are designed to enable people to build credit and savings simultaneously. The company also offers free rent reporting to the three major credit bureaus, and utility payment reporting to TransUnion. Download the Self app at the Apple App Store (250,000+ reviews and an average 4.9 rating) or Google Play or visit Self.inc for more information.

This quarter was unlike any other. SpringFour was recognized as the leader in financial health while delivering 1.25 million financial health referrals to individuals in this quarter alone. In addition to being named a Fast Company Brand that Matters, Finovate Innovator of the Year, and a Banking Tech Awards Finalist, a range of media amplified SpringFour’s timely and timeless empathy-driven work in prioritizing consumers’ financial health. 

Fast Company wrote: “In an industry that at times has not prioritized the financial health of consumers, SpringFour is taking a different approach to banking.”

Tearsheet’s article headlined with: ‘The bottom line is empathy’: BMO and SpringFour are changing what it means to bank on consumers’ financial progress.”

Banking Dive directly stated: “The social impact fintech points customers in need of financial assistance to nonprofit and government resources to help them get back on their feet.”

The Q3 Impact Report also covers resource enhancements including our new Transportation category and resource updates for student loan borrowers as payments resumed this quarter. 

Today, it is clearer than ever before — SpringFour is transforming institutions’ approach to their customers for good. Organizations that are committed to employing a customer-first strategy and elevating the customer experience know that prioritizing their customers’ financial health is essential. We are so proud to create impact with you.

Morgan Pierce

Impact and Communications Manager