We are here because millions of workers in the U.S. are financially insecure and reliant on debt to make ends meet.

Financial insecurity has become the norm for most working Americans, rooted in the failures of the labor market and financial services market to truly understand and meet workers’ needs.

Today, 44% of all U.S. workers are low-wage, earning a median hourly wage of $10.22, with Black and Latinx workers most likely to earn low-wages. As many as 60% experience unpredictable hourly schedules, leading to volatile incomes.

To cover the cost of household essentials, low-income workers are often forced to borrow from credit cards, their future paycheck, their retirement account or from family. Many turn to expensive and predatory short-term services—nearly 12 million Americans take out payday loans each year. As of early 2021, U.S. households carry a cumulative $14.64 trillion in debt and 29% of them have debt in default or collections.

For workers, financial insecurity has real impacts on quality of life. Carrying overwhelming debt can inhibit their economic mobility, educational attainment, psychological well-being, and even physical safety by preventing access to secure housing.

We, as a society, are faced with an opportunity to fundamentally re-think and re-shape how workplaces and financial services operate so that they prioritize worker financial security and debt reduction. There is a need for effective, scalable solutions that get workers out of debt in the short term, guided by the realities of what got them into debt in the first place. Neighborhood Trust is prepared to take on that challenge.

Insights that fuel innovation

We design and deliver financial solutions to workers through their workplace, and introduce insights about serving these workers to the marketplace. We believe helping workers eliminate debt and build financial security requires a combination of proven approaches, trusted human guidance, strategic partnerships, and bold product and service innovation.

SOLUTIONS FOR WORKERS

The best place to reach workers is through the workplace. Our workplace benefit TrustPlus provides trusted financial guidance to workers, and connects them to safe and effective financial products. The result is reduced debt, improved credit, and less financial stress.

Through our Financial Empowerment Centers (FEC) initiative, a partnership with the City of New York, we offer free, one-on-one financial coaching to all city residents. In addition, our Pathways program, a partnership with credit union advocacy network Inclusiv, trains credit union staff nationwide to provide our model of action-oriented financial coaching to their members.  Together, these programs allow us to expand our reach and serve underserved communities, bringing economic stability and empowerment to those who need it most.

INSIGHTS FOR CUSTOMERS AND PARTNERS

Real change can happen when employers and institutions hold themselves accountable for helping workers build financial security. We advise our customers and institutional partners on how to more effectively support workers’ financial needs, and we co-design innovative solutions together.

TRANSFORMATION FOR THE MARKETPLACE

The nature of work and the financial services industry are ripe for a worker-centered transformation. We share data and qualitative insights on the financial realities of workers to inform, influence, and motivate change. Our work impacts market leaders, advocates, and peer social enterprises who share our desire to pursue a more equitable economic system.

Equity is foundational to our beliefs as an organization, and central to our marketplace solutions, product design, and customer advising.

Building off our roots in Washington Heights, we continue to serve and be accountable to low-income workers in low-wage jobs—a disproportionate number of whom are female and Black or Latino.

Our work seeks to break down barriers to equity through systemic change. In doing so, we purposefully point to systemic racism in the labor market and the ways in which worker financial insecurity is inextricably linked to the long history of racism in our country. Within our solution design, we incorporate this explicit awareness about the racism in systems that cause worker financial insecurity. We believe more equitable systems can only happen if organizations like ours, our customers, policymakers, and market leaders collectively amplify worker voices of color. We must listen to and learn from workers. Truly understand their experiences, then champion, advocate, and act. To ensure our internal practices align with our racial equity, diversity and inclusion (REDI) values, Neighborhood Trust is also prioritizing a REDI effort as part of our organizational strategy. We have established a dedicated REDI Team to lead this work.