During the COVID-19 outbreak Fintech apps are playing a critical, behind-the-scenes role in this new economic environment. The main reasons are the ability for Fintech to make financial services faster, cheaper and more accessible.
GiveDirectly is the first nonprofit that lets donors send money directly to the world´s poorest. In order to respond to the crisis, they partnered with Brooklyn fintech startup Propel, whose Fresh EBT app has more than 2 million low-income users. With GiveDirecly´s guidance, Propel is homing in on the poorest zip codes that have been hardest hit with coronavirus cases as: New York, the San Francisco Bay Area, Seattle and New Orleans, to decide who should receive aid. Each household will receive $1.000 USD.
Even is an Oakland, California started in 2014 the platform gives employers visibility into their daily earnings, access to pay when they need it, and the possibility to plan – before payday arrives. Companies as Walmart and restaurant chain Noodles and Co., offer the app as a subscription service to employees. To help during COVID-19 Even are partnering with companies for free – with no obligation to renew once the crisis ends – to providing employees with faster access to their own paychecks and to planning tools that build financial resilience over time.
Digit is an iPhone app created in 2012, that strives to make saving money as passive as possible. To do this, Digit Analyzes your income and spending patterns, and then automatically dips into your checking account and puts a few dollars into savings account. Today this saving is a way to face the crisis and realize the importance of having them.
SaverLife is a San Francisco nonprofit with more than 250,000 members that offers incentives to hit savings goals. For example: if you save $100 USD by April 30, you could win another $100 USD. Leigh Philipps President and CEO of SaverLife announced on march 18 “This is the moment we have been saving for” and last week also announced a partnership with Wells Fargo and financial coaching service Neighborhood Trust to provide $1 million in financial aid. They are giving out $500 checks and providing financial coaching to 1,000 small business affected by coronavirus.
The impact of Covid-19 is hitting working families hard. In addition to loss of income, expenses are rising as families rush to stock-up on essentials and prepare for the worst. This savings is the best way to respond to the real needs, in real time. As a user said “I´m happy I had those couple extra dollars put aside for a rainy day, because the rain does come”.