Credit, Collections & Insolvency News
JPMorgan Chase announced a £1.2 million philanthropic commitment to help low-income and underserved communities across the UK access affordable loans and build financial resilience.
This new commitment will help Fair4All Finance expand its No Interest Loan Scheme (NILS) pilot to a sixth region in the UK. The scheme, the first of its scale in the UK, offers a vital financial cushion for people who are unable to access or afford existing forms of credit, but can afford to repay smaller amounts. Today’s new commitment is expected to expand the scheme by a further 3,000 people.
JPMorgan Chase’s investment will also help Fair4All Finance pilot a financial coaching program for some NILS customers. This program will allow customers to keep their payments on track and support them in building their credit history and improving their access to other affordable credit options.
There were nearly 14 million low-income people in the U.K at the onset of the pandemic. COVID-19 has exacerbated existing inequalities affecting low-income and underserved communities, increasing the number of people who would be vulnerable to financial shocks.
Stephanie Mestrallet, Head of UK Philanthropy, JPMorgan Chase said “Financial stability is a persistent challenge for many people, especially for low-income families, and far too many people don’t have the financial resources on hand to weather an emergency.”
“We’re proud to support Fair4All Finance in their work to help people across the UK build financial resilience.”
In 2021, Fair4All Finance secured £3.8 million in funding from HM Treasury, as well as up to £1 million in lending capital from Wales, Scotland and Northern Ireland, matched in England by Fair4All Finance. Fair4All Finance will run the program, with support from Toynbee Hall and Fair By Design.
John Glen, Economic Secretary to the Treasury said “I am proud the Treasury is funding the No Interest Loan Scheme pilot which will provide those who are financially excluded the opportunity to access affordable credit to meet unexpected costs.”
“JPMorgan Chase’s decision to provide philanthropic funding to expand the pilot and provide loan recipients with free, quality financial management advice is very welcome. This is an excellent example of the way the wider industry can support innovative and important initiatives like this, and I encourage other firms to consider doing the same.”
The scheme will work with credit unions, Community Development Finance Institutions (CDFIs), and other regulated not-for-profit lenders who will help administer the loans across communities. Partnerships with local councils, housing associations, and charities are also key to helping serve more people.
Sacha Romanovitch OBE, CEO of Fair4All Finance said ‘We’re delighted to receive this funding from JPMorgan Chase. It will allow us to get more essential NILS loans out to people in real need of support and to test the effectiveness of providing additional financial coaching support, to see whether this can further improve outcomes for NILS customers.”
“It’s a great example of how funding from a mainstream provider can be used to help customers in vulnerable circumstances. We think this route is an important step in the journey to seeing banks serve this customer group directly.”
