This fall, Commonwealth partnered with Fintech Sandbox to bring a social impact lens to the financial services ecosystem at Boston Fintech Week. Throughout the week, nonprofits, fintechs, and finance experts shared their rich insights and practical experiences from across the industry on how fintech can design products that build financial security and lead to a more equitable financial system–offering benefits to employees and customers while providing significant business value.
Here are our top takeaways from five of the panels:
Moonshot for Wealth: Envisioning an Ecosystem Where Wealth is Possible for All
Moderator: Sarah Willis, Director of Financial Health, MetLife Foundation
Panelists: Timothy Flacke, Executive Director, Commonwealth; Adrienne Harris, Senior Research Fellow, Gates Foundation; Aparna Ramesh, CAO, FedNow; Sydney Akins, Head of Private Wealth Management, Ellevest
Key Takeaway: Fintech has opened the door to a new world of solution-building opportunities, lowering barriers to saving and wealth building and engaging consumers who have historically been left behind. Though there is still much work to do, the panelists envisioned a bold, multi-sector solution that draws on the unique capabilities of each sector–employers, financial institutions, fintechs, government, and more–to contribute to a financial landscape that moves beyond “making ends meet” and offers people viable pathways to building wealth.
Rainy Day to Riches: Moving Beyond Short-Term Financial Security
Panelists: Callum King, Co-Founder and President, Brightside; Roshni Chowdhry, Head of Customer Experience, SafetyNet; Jordan Wimmer, CEO and Co-Founder, Thrive Savings; and Pedro Moura, Co-Founder and CEO, Flourish
Key Takeaway: There is a prevalent myth that small-dollar savings don’t matter, but as the panel discussed, there is growing evidence that this isn’t true, and that consumers can save. Employers in particular have a unique advantage to helping consumers save, as well as an incentive to offer more support–employers lose $500 billion a year in employee productivity due to financial stress, making it a critical business decision.
Mission Possible: Nonprofits Leading FinTech Innovation
Panelists: Mae Watson Grote, CEO, The Financial Clinic; Tim Flacke, Executive Director, Commonwealth; Justine Zinkin, CEO, Neighborhood Trust Financial Partners
Key Takeaway: Nonprofits play a vital role in fintech innovation. Not only are they creating products themselves, but through their strong partnerships with fintech apps and solution providers, they are providing unique expertise to help companies build trust, create business value, and better serve customers on the margins.
Peace of Mind for All: Fintechs Transforming the Insurance Market
Panelists: Jake Tamarkin, Co-Founder and CEO, Everyday Life; Kristen Tyrell, Co-Founder and COO, Catch; Kate Terry, Co-Founder and COO, Surround Insurance
Key Takeaway: Developments in data science offer an incredible opportunity for the insurance industry to better understand its customers and their changing needs. The industry can leverage new data and technologies to make high-quality insurance accessible to everyone and impact the financial security of those with low and moderate income levels.
Not only can insurance help in a crisis – there is a business case to be made. Financial inclusion with respect to insurance has a tremendous upside.
Emerging Technology and Financial Security
Panelists: Sarah Sable, Chief Program Officer, Neighborhood Trust Financial Partners; Tim Duncan, Founder, ai Financial Commons
Key Takeaway: Emerging technologies hold the potential to transform the financial services system and offer greater opportunities to build financial security for everyone. Panelists were encouraged by early successes, but noted that it will be important to continue to assess technologies to ensure they are inclusive. As technologies continue to evolve–and the industry alongside them–it is still up to humans to ensure the tools are working as effectively as possible to help people improve their financial situation.