United Way THRIVE convenes a group of its non-profit partners that work to identify and evaluate financial technology or “fin tech” that will safely and effectively move a family on a pathway towards financial stability. The group recognizes there are two major distinctions within fintech platforms:
Financial Products. i.e. credit building, small dollar
loans. An example of this is Fig Loans.
Financial Apps and Financial Tools: financial apps (i.e.
NerdWallet) may be only educational in nature while a financial tool is
actionable (i.e. CreditWise or CreditKarma).
THRIVE’s evaluation framework focuses on five key areas:
Mission aligned: the partner must be aligned with THRIVE’s mission to move families on a pathway towards financial stability. They adhere to a code of ethics and consider first the needs of lower income families.
Transparency: responsive to non-profit partners and client questions or concerns. They clearly communicate all fintech features such as any costs associated with the product and termination methods to their constituents.
Longevity/Sustainability: Fintech partner has a sound business modelthat will ensure sustainability of their product.
Security: Protecting client/customer information isof highestpriority. Fintech partner articulateshow they utilize this client information/data. When a bank account is linked within a fintech product, multi-factor authentication (MFA) is considered to be a best practice.
Reputation: they may have an established reputation within the financial capability field and have been vetted by national partners. If they are new to our market, they are working on establishing a favorable reputation within lower income families or service providers.