ImpactAlpha, Dec. 12 – The raft of solutions for low-wage workers that fintech companies are rolling out won’t fix large-scale workforce problems like wage stagnation or variable income. But set up right, they can help, argues SaverLife’s Leigh Phillips.
“We know that saving regularly and having an emergency fund is the way to weather financial instability,” Phillips tells ImpactAlpha.
SaverLife, a 18-year-old San Francisco-based nonprofit, runs a platform that uses prizes and incentivize to encourage workers to save more. The organization has reached 250,000 individuals through its direct to consumer platform, and has completed a year-long pilot for a white label platform for employers, employers, credit unions and other organizations. Employer partners like Levi Strauss’ used SaverLife to set up an employer matching scheme for savings funds.
Participants often saved more than the employer match and put away an average of $600 over six months, which exceeded the employer match. “Our members save 11% of their income, which is almost twice the national average, even though they earn about half of the national average,” Phillips says.
A $1.5 million grant from Prudential will help SaverLife grow the revenue-earning, white label side of its business.