SaverLife’s sign-up rate has increased 270% since the pandemic began. Here’s why:
Sitting in my make-shift home office in the first week of shelter-in-place watching COVID wreak havoc on jobs and families, I was feeling despondent. As the CEO of a savings organization, how could we expect people to even think about saving in the face of catastrophic financial loss?
We were in for a big surprise. Instead of slowing to a trickle, SaverLife signups accelerated at an explosive rate since the pandemic began, with June 2020 seeing over 270% growth compared to June 2019.
Why are so many joining a savings community during a massive economic downturn? Here are just a few ways SaverLife leveraged our technology to meet the moment:
Quick, cash assistance. We started making payments from our COVID relief fund by April 1st. If you are uncomfortable with efforts to give cash directly — I'd like to humbly suggest you get over it. Discomfort around cash grants is often rooted in mistrust — a sense that the money won’t be used wisely. But our data shows that the opposite is true. Our members are spending on rent, groceries, and the tools their kids need to practice distance learning. Our donors' generosity means we can give $500 to a limited number of families. But members told us that even small amounts could make a difference in paying for diapers or a cell phone bill. So we expanded our cash program to include $50 payments to many more members.
Trusted information and resources. In the midst of the overnight economic chaos, our members struggled to claim the assistance they needed and deserved. An overnight poll suggested that 30% of our members did not think they were eligible for stimulus, even though 95% of our members likely were. Using real-time data and regular client feedback means we can understand the barriers clients face in accessing resources and step in to help. We are connecting our members with accurate information on stimulus and unemployment insurance, and tools to help them access resources in their communities.
Staying on mission, encouraging savings. It is too early to tell what the medium-term impact on emergency savings will be, but in April and May our members actually saved more than in the same period last year. Those who can save are doing so at higher rates than before the pandemic hit, and even those who are struggling financially are still committed to saving when they can. Our members are surviving—struggling through job losses, uncertainty, illness, and fear—but they are tough.
As always, the resourcefulness and resilience of our members gives me hope. But the fear and uncertainty breaks my heart. As we begin a long and uneven recovery, we must continue to do everything we can. It all matters.