During the Covid-19 outbreak Fintech startups 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 the American FinTech 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, at the moment over 1000K families were supported with $1.000 USD.
Furthermore, the nonprofit has a program to respond to the crisis in African countries as Kenya, Liberia, Malawi, and Rwanda. More than 641K families have been support economically with monthly payments between $30 and $150. GiveDirectly Works with different NGOs to target and enroll vulnerable recipients. Also, they partner with local governments to reach vulnerable household.
There are a lot of examples to show about how FinTech Companies are making impact in the socio-economic crisis generate by Covid-19 pandemic. We enlist some of them here:
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. The FinTech 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 last year “This is the moment we have been saving for”.
Last year, they announced a partnership with Wells Fargo and financial coaching service Neighborhood Trust to provide $1 million in financial aid. They offered one-time payments of $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. Any financial initiative is essential for our society in this time, where the most undeserved people are desperate to respond to the real needs, in real time.