“Big data” seems to be ubiquitous – it is often portrayed as the key to solving all the business challenges faced by companies. But what if the people that you are trying to support are not included in the “big data” sets? Data about the millions of people who are not in the financial mainstream is getting left out, which means their financial challenges are often going un-addressed.

The Consumer Insights Collaborative, a group of nine leading nonprofits (including Commonwealth, EARN, FII, the Financial Clinic, Inclusiv, LIFT, Mission Asset Fund, Neighborhood Trust, and MyPath, and convened by the Aspen Institute Financial Security Program),  is addressing this gap by pooling all of our data to tell the story of the financially vulnerable. We issued our first report today, Short-Term Financial Stability: A Foundation for Security and Well-Being. It is based on our collective, significant data assets and our experience of listening to and working with low and moderate income people. It focuses on four types of financial cushions needed for stability:

• Positive cash flow
• Liquid savings
• Access to high-quality credit, and
• Strong social networks.

Commonwealth’s work over the last 18 years has been based on the premise that financial stability and security are fundamental to achieving financial opportunity and economic mobility. This report highlights the barriers to financial stability, the strategies that people use to boost stability on their own, and the systemic and structural changes needed to support people’s own efforts.

The insights in this report are designed to bolster the ability of financial services firms, fintechs, and employers to build financial stability and security for all by analyzing their current data sets to understand what key information is missing and by including objectives around building financial stability for financially vulnerable people in their new product development process.

Watch this space for additional practical steps that financial services firms, fintechs, and employers can take at the intersection of their business interest and social impact. To continue the conversation, contact us at info@buildcommonwealth.org.