JPMorgan Gives $1.5M to UK Loan Nonprofit

JPMorgan Chase has made a $1.5 million (1.2 million pounds) philanthropic commitment to help low-income and underserved people in the U.K. access affordable loans, the banking giant said in a news release Thursday (March 17).

The company says its commitment will help the nonprofit Fair4All Finance expand its no interest loan pilot program to a sixth region in the country, helping 3,000 people. The program is the first of its kind in the U.K. and “offers a vital financial cushion for people who are unable to access or afford existing forms of credit, but can afford to repay smaller amounts,” the release said.

In addition, the investment will help Fair4All Finance launch a financial coaching program for some customers of the loan plan, allowing them to keep their payments on track and help them build credit.

According to the news release, there were close to 14 million low-income people in the U.K. when the pandemic began, and COVID has only made things worse for people who would be vulnerable to financial upheaval.

“Financial stability is a persistent challenge for many people, especially for low-income families, and far too many people don’t have the financial resources on hand to weather an emergency,” said Stephanie Mestrallet, head of UK Philanthropy at JPMorgan Chase.

Last year, Fair4All Finance secured £3.8 million ($4.9 million) in funding from the British Treasury, as well as up to £1 million ($1.3 million) in lending capital from Wales, Scotland and Northern Ireland, matched in England by Fair4All Finance. Fair4All Finance will oversee the program, with support from Toynbee Hall and Fair By Design.

Read more: JP Morgan to Acquire Ireland-Based Global Shares

Earlier this week, J.P. Morgan Chase announced it would acquire Global Shares, the Irish cloud-based provider of share plan management software, for an undisclosed amount.

The multibillion-dollar financial services company says the acquisition will boost the services it offers corporate clients and create a client acquisition channel wealth management business.