When nonprofit coaches charged with helping clients achieve financial stability are not up to speed with all the new FinTech products that can serve as vehicles, it further deepens the wealth divide and puts residents at risk of being left behind in financial services.
Financial technology or “FinTech” is a catch-all term for technology used to augment, streamline, digitize or disrupt traditional financial services.
As new FinTech products are hitting the financial services marketplace, and more financial transactions are being done online, there is a greater need for coaches to be versed in Fintech - to understand the benefits and risks and how to use these products.
Change Machine, a national organization focused on building financial security for low-income communities across the US through people-powered technology, is aiming to close the FinTech divide by developing a new platform to educate nonprofit coaches. Change Machine elected to use Houston to test their new LEARN Platform. The relationship between LISC Houston and Change Machine results from a connection through the Financial Health Network (FHN).
Serving as the local partner, LISC Houston recruited eight organizations to participate in Change Machine’s new platform highlighting the benefits of FinTech in a way that coaches can convey to their clients and using a system (their “Seal of Inclusivity”) to bring awareness to risks such as privacy breach and misleading information. Information about risk helps coaches screen potential Fintech to understand if it is beneficial, and helps clients understand how much to divulge and learn to spot red flags.
This project gives coaches in Houston a sneak peek of what’s to come, exposure to coaching using Fintech, and bolsters their general knowledge of coaching.
So, how does this impact the residents we serve? As more and more of our lives are online, there is a need to be versed in Fintech and understand the benefits and risks. Change Machine does both – highlighting benefits in a way that coaches can convey to their clients and using a system to bring awareness to risks such as privacy breach and misleading information. The vetting system (Change Machine’s Seal of Inclusivity) acts as a “gatekeeper” - it helps coaches to assess potential Fintech to understand if would be beneficial for clients, and helps clients understand how much information to divulge and learn to spot red flags. It identifies and monitors financial products and services that enhance service-delivery or improve customer outcomes, behavior change, or progress toward financial goals.
This project helps Change Machine gather specific feedback and critical input to refine their new platform before launch and gives coaches in Houston a sneak peek of what’s to come, exposure to coaching using Fintech, and bolsters their general knowledge of coaching.
Participants (coaches) receive a Change Machine LEARN license (access to a paid subscription) for their review of courses and have access to a library of resource worksheets and documents that they can download, in exchange for logging feedback about course content and flow. Coaches are also compensated. After the period of taking courses and providing feedback, participating coaches can retain access to the Change Machine platform’s SHARE feature – a Community of Practice including coaches who interact using a discussion board style to troubleshoot, brainstorm, and provide best practices.
United Way of Greater Houston has been a partner in this work, as well, further illustrating the power of relationship-building. As we wanted to extend this opportunity beyond LISC Houston’s four Financial Opportunity Centers, United Way provided their list of coaches to contact, expanding our base of potential participants in the partnership.
In the first cohort, we had eight people sign up to participate; the wrap up discussion with Change Machine’s developer and three of the reviewers was insightful and robust. We’re looking forward to continuing this project with another cohort starting on September 11. The process gives Houston coaches the ability to guide development of Fintech coaching courses, interact with each other, gather useful tools and knowledge, and provide Change Machine with the input and feedback they need to continue to evolve. It’s a win-win for financial security!