Financial systems must be designed to enable both the financial and non-financial factors required to build a prosperous and equitable economy. 

Changing the landscape of financial security and opportunity for financially vulnerable people requires a deep understanding of the elements of the financial system—the products, services, experiences, distribution channels, and policies—that support individuals’ ability to achieve financial security. Becoming financially secure requires both believing that financial security is attainable for yourself and your community, and having a positive balance sheet. 

Commonwealth has identified four non-financial factors relevant to reaching financial security and building positive financial futures:

• A Journey Mindset, 
• Aspiration- and Value-centered Motivations, 
• Social Networks, and 
• Inclusive Messaging. 

These non-financial factors result, in large part, from the financial and social systems in which people live. Importantly, we have found that race, gender, and household income are not significant factors in predicting which individuals had this mindset. Therefore, changes in the design of the financial system can have a significant impact on supporting people in attaining financial security. 

Commonwealth’s Positive Financial Futures research has important implications for a broad range of actors looking to design products, services, experiences, distribution channels, or policies that will support people on their path to financial security:

• Employers who want to enhance the financial security of their workforce by providing access to engaging benefits; 
• Financial institutions looking to better serve current customers or attract new customers; 
• Fintechs developing innovative new products for underserved markets; 
• Nonprofit organizations wanting to serve their clients better; and 
• Policymakers aiming to address the financial needs and aspirations of low- to moderate- income households.

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Actors from across all sectors can design products, services, experiences, distribution channels, and policies that include impactful nonfinancial factors to enable enduring systemic change and build financial security and opportunity for all. To explore and learn more about how your organization can practically apply non-financial factors to your product and distribution strategies to enable positive financial futures, contact us.