The Critical Role of Business Leaders

The Moment to Act

Widespread, financial insecurity—disproportionately impacting Black, Latinx, and women-led households—demands bold action from leaders and institutions, especially corporations, to drive systemic change. By prioritizing financial security, business leaders will deliver value for all critical stakeholders: employees, customers, their businesses, and the economy as a whole.

The effects of stress caused by widespread, chronic financial insecurity is estimated to cost American companies $250 billion annually.

MERCER STUDY, 2020

Systemic Change for Social and Business Impact

By creating access, tools, and opportunities to save money and build wealth, business leaders can benefit customers and employees alike, while advancing the business goals of the organizations they lead.

The effects of widespread, chronic financial insecurity reverberate beyond individuals. The data are overwhelming: the distribution of wealth and financial security is not only an economic or class issue, but a racial and gender one as well. Consequences reach into the workplace, with employees spending an average of 13 hours a month at work worrying about finances, and lost productivity due to stress costing American companies $250 billion annually.

There is an opportunity loss for businesses as well. If Black Americans reached full parity in terms of wealth with white Americans, financial services companies could realize up to $60 billion in additional revenue from Black customers each year.

65% of Americans think employers should do more to address inequality.

PERCEPTIONS OF FINANCIAL INSECURITY IN AMERICA, 2020

Meaningful progress on financial security and opportunity for lower-income households requires collaboration across all sectors. Business leaders have an opportunity to take action through the organizations they lead to benefit customers and employees. Fintechs, employers, financial institutions, infrastructure providers, and other businesses are uniquely positioned to expand access to quality tools and opportunities that enable financial security and opportunity for everyone.

70% of working Americans believe external factors, such as gender/race inequality in the workplace and the rising cost of living, are significant determinants of financial insecurity.

PERCEPTIONS OF FINANCIAL INSECURITY IN AMERICA, 2020

Commonwealth’s work with major corporations—financial services firms, employers, payroll providers, recordkeepers, and more—indicates that leaders at the top of their fields often understand both the business and social cases for bringing financial security to low- to moderate-income Americans. We continue to produce rigorous consumer research, policy insights, practical solutions, private convenings, and events that foster meaningful dialogue with business leaders and build the case for the materiality of worker financial security among investors. 

Partner With Us

We are actively engaging with innovators, fintechs, financial services firms, industry experts, employers, and policymakers. To learn more about how your organization can partner with us to make financial security and opportunity possible for all, contact us or sign up for our newsletter.