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New York City Launches NYC[X] Moonshot: Financial Inclusion Challenge, Inviting Innovative Solutions to Serve Unbanked & Underbanked New Yorkers
July 26, 2021
From July 26 – September 20, the New York City Mayor’s Office of the Chief Technology Officer is accepting proposals on how to leverage tech & innovation for financial inclusion and community wealth building for unbanked and underbanked New Yorkers, particularly in the Bronx.
NEW YORK — Today the City of New York launched the NYC[x] Moonshot: Financial Inclusion Challenge to solicit innovative solutions that address the multifaceted barriers unbanked and underbanked New Yorkers in the Bronx and across New York City face and facilitate building community wealth and sustainable economic opportunities. The City encourages stakeholders from a diversity of backgrounds to respond, including fintech companies, community groups, and youth. Partnerships between different stakeholders (e.g., a fintech company and a community-based organization) are strongly encouraged.
Desired solutions should make use of breakthrough financial inclusion technology, innovative models, and culturally relevant approaches to address the barriers unbanked and underbanked New Yorkers in the Bronx and across New York City face and facilitate building community wealth and sustainable economic opportunities. Winners of the NYC[x] Moonshot: Financial Inclusion Challenge can win up to $20,000. Interactions during the Challenge may uncover acceleration and scaling or technical prototype development and follow-up support opportunities.Applicants can learn details and submit proposals at nyc.gov/financialchallenge from now through September 20th, 2021.
“To make the most of economic opportunities, New Yorkers need access to trust-worthy and reliable financial resources that meet their needs,” said Deputy Mayor of Operations Laura Anglin. “The NYC[x] Moonshot: Financial Inclusion Challenge creates opportunities for the City to learn about bold, innovative solutions that advance financial inclusion. We applaud the NYC[x] Moonshot program for leveraging technology and innovation to ensure all New Yorkers have equitable access to financial resources.”
“Too many people have been left out of the financial system for too long. This disparity means that financial transactions such as cashing a check or sending money to loved ones often end up costing more for those who can least afford it,” said John Paul Farmer, Chief Technology Officer of New York City. “The NYC[x] Moonshot: Financial Inclusion Challenge will highlight new and better options for people who are unbanked or underbanked today. As more and more New Yorkers get connected, digital technologies become available and new business models become viable, making it possible to build community wealth and empower New Yorkers in need.”
COMMUNITY NEED
Across New York City, over one million households have no bank account (unbanked) or have bank accounts but use alternative financial products for some banking needs (underbanked). In the Bronx, 49.2% of households are unbanked or underbanked compared to 33% across New York City and 26.5% nationally.
The World Bank states that “financial inclusion [is] a key enabler to reduce extreme poverty and boost shared prosperity.” At the same time however, the San Francisco Office of Financial Empowerment states that it “the financial system is not designed to serve low-income consumers, and is rife with systemic racism that harms Black Indigenous People of Color (BIPOC) communities.”
The COVID-19 pandemic has exacerbated many systemic inequalities, drawing heightened attention to the financial fragility of communities of color. Decades of low incomes and structural barriers such as the lack of access to culturally competent brick and mortar financial institutions that offer safe, affordable, and accessible banking products and services, has combined with a lack of trust and enabled the proliferation of predatory and extractive alternative financial products. The NYC[x] Moonshot: Financial Inclusion Challenge invites respondents to submit an array of innovative solutions that leverage technology, non-extractive models, and cultural competency necessary to foster an equitable economic recovery and build community wealth.
DESIRED SOLUTIONS
The City of New York seeks implementation-ready and idea-stage solutions that advance any combination of the following outcomes for communities, their residents, and their businesses:
- Innovative Models – Novel business/governance/other models that build community wealth and assets rather than extract it
- Ownership – Increase and preserve ownership by communities and individuals; reduce the barriers and increase opportunities to build assets and own businesses
- Incomes – Increase incomes of community members; enable routinely positive cash flows
- Bankedness – Increase the number of New Yorkers that have consumer-friendly, affordable bank accounts that meet their needs
- Trust – Increase trust and reliance in financial institutions, products, and services
- Bank Deserts – Addresses the lack of brick and mortar financial institutions
- Accessibility – Increase accessibility of consumer-friendly, affordable banking or wealth building products (credit and/or asset building) and services
- User-Centeredness and Cultural Competence – Solutions are developed with the end-user experience and cultural context in mind
- Products & Services – Provide non-predatory (without aggressive or deceptive tactics) financial products and services
- Education – Increase knowledge about the benefits of maintaining a safe and affordable bank account; which institutions, products, and services are trusted and accessible; the process for opening a bank account; and other wealth building opportunities
- Small Business Support – Increase access to financing, banking accounts, and user-centered support
- Leveraged Community Assets – Leverage community assets and collective economic power to support communities and individuals
Applicants may submit their solution to one of the tracks below based on solution maturity:
Track 1: Implementation-Ready Solutions – Mature solutions that could be implemented with real New Yorkers in the Bronx at the time of final submission and have the potential to scale citywide
Track 2: Idea-Stage Solutions – Solution ideas that are not yet mature enough for implementation and can benefit from solution development support
Additional details and information on how to apply to the Challenge can be found at nyc.gov/financialchallenge.
“Having a bank account is an essential part of financial stability and should be easily accessible to all New Yorkers, regardless of their income or area they live in,” said Department of Consumer and Worker Protection (DCWP) Acting Commissioner Sandra Abeles. “DCWP’s research has shown that NYC’s unbanked households are highly concentrated in neighborhoods that are financially vulnerable and lack access to brick-and-mortar banks and internet, with the Bronx having greater unbanked rates than the rest of the city. We are thrilled to be a partner in this program and citywide effort to help New Yorkers gain access to safe and affordable financial products and build towards a more equitable city. We encourage New Yorkers to make an appointment at one of our Financial Empowerment Centers where a counselor can help you find the right account and work together towards achieving your financial goals.”
“The Young Men’s Initiative is proud to support innovative solutions to reduce wealth and income disparities,” said Jordan Stockdale, Executive Director of the Young Men’s Initiative. “The Moonshot Initiative will empower our communities by increasing access to and awareness of progressive financial programs and institutions.”
“New York City’s businesses are the bedrock of our communities, and our local entrepreneurs offer a wealth of ingenuity when they are helping to solve city-wide issues,” said Jonnel Doris, Commissioner of the NYC Department of Small Business Services. “I have no doubt that their solutions will empower unbanked and underbanked City residents, catalyze greater investment in our communities, and chart a path toward an even stronger recovery.”
ABOUT THE PARTNERS
NYC Mayor’s Office of the Chief Technology Officer (MOCTO)
Our mission is to ensure that technology is inclusive, accessible, human-centered, and works for all New Yorkers. We view technology as a critical tool for making New York City the fairest big city in America. Our work is organized around four pillars: Universal Broadband, ensuring high-quality, affordable internet for all New Yorkers; Inclusive Innovation, making New York City the place where new ideas are applied to improve lives; Digital Services, delivering government services online to make government work better for everyone; and Emerging Tech & Society, advancing laws, rules, and plans that promote the public good and protect New Yorkers’ digital rights. Learn more at nyc.gov/cto.
NYC Department of Consumer and Worker Protection Office of Financial Empowerment (OFE)
Within the Department of Consumer and Worker Protection (DCWP), the Office of Financial Empowerment (OFE) focuses on initiatives that support New Yorkers and communities with low incomes in building wealth and improving their financial health. OFE is the first local government initiative in the country with the mission to educate, empower, and protect New Yorkers and neighborhoods with low incomes so they can build assets and make the most of their financial resources. OFE uses data and research, policy, partnerships, and convenings to advance its mission. Using this model, OFE is able to develop, offer, and advocate for innovative programs and products for all New Yorkers.
NYC Department of Small Business Services (SBS)
SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building thriving neighborhoods across the five boroughs.
NYC Young Men’s Initiative (YMI)
YMI was created as a public-private partnership to address increasing disparities among black and Latino men between the ages of 16 and 24 in education, employment, health and justice. The YMI mission is to develop and champion policies, programs and partnerships that holistically support the success of young men of color throughout NYC.
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