ClearStreet delivers financial wellness solutions to enable Americans to build savings habits, eliminate barriers to saving, and create long-term financial health. ClearStreet provides mobile and web apps and an integrated program to incentivize and automate saving, and leverage everyday spending to accelerate saving. The ClearStreet program is offered as a financial wellness benefit in the workplace.
ClearStreet's program links rewards for shopping loyalty to create incentives for increased savings. ClearStreet commits to roll out its program to at least 1,000 individuals through corporate wellness programs. Designed to help people make saving a routine habit, ClearStreet will enhance its mobile and desktop savings platform to include the following capabilities:
Automated saving: The ClearStreet mobile savings app enables savers to automate their savings deposits to occur at times of high liquidity so that saving is not crowded out by spending.
Spending that's aligned with saving: The ClearStreet mobile spending tracker increases a saver's awareness of their everyday spending through tracking and monitoring everyday expenses. This is critical to achieve savings goals because spending and savings compete for the same pool of income.
Incentives to save: ClearStreet's saving platform rewards individual saving behavior with drawings for savings deposits, and by giving savers access to online and one-on-one financial coaching.
Everyday shopping to help drive saving: The saver's biggest liquid asset is the income they spend on everyday shopping. ClearStreet creates a return on that asset via cash-back merchant rewards that are automatically deposited into savings. Enabling savers to 'pre-buy' merchandise: 1) increases a shopper's control over spending, 2) increases the amount of reward to the shopper, and 3) increases the value of the transaction for the merchant.
Remove obstacles to saving: Unexpected financial shocks derail saving and keep savers focused on near-term financial concerns rather than long-term financial needs. Through its partner, SimpleFi, ClearStreet provides below-market short term financial assistance to meet unexpected financial shocks.
ClearStreet will also work with national merchants to integrate its Financial Wellness program into existing loyalty programs. As implemented, merchants would benefit by receiving cash up front for a consumer's commitment to buy in their store. They would also benefit from helping improve the financial health of the 78 percent of Americans who live paycheck to paycheck.
ClearStreet's overall commitment goal is to increase the savings rate of the U.S. households that do not currently deposit income into a savings account, by helping to automate savings habits while leveraging an undervalued household asset: loyalty rewards for everyday spending. To achieve this goal, data must be collected to show that the model will be mutually beneficial to merchants and consumers and that the technology and approach will be successfully scalable. The commitment pilot will be conducted in three phases, with a regional focus in the San Francisco Bay area.
Phase 1: ClearStreet will recruit 1,000 or more participants via employers and partners with access to middle and low-income households. ClearStreet will also recruit an initial set of merchants, including at least one anchor merchant that offers food, clothing, and household goods. The setup and recruitment phase will be conducted from June 2014 to December 2014.
Phase 2: ClearStreet will roll out a pilot app to participant users from August 2014 to June 2015 and manage the ongoing program, providing support to end-users and merchant participants
Phase 3: ClearStreet will conduct full analysis and measurement of the results from the pilot phase. This evaluation phase will run from May 2015 to June 2015.
Seventy-eight percent of American adults have less than six months of expenses in savings. Nearly 30 percent have no savings at all. Savings rates have been on a decline from approximately eight percent in the late 1950's to less than two percent today. The availability of credit has decreased and the cost of credit has increased. Reduced household incomes and cost of credit create barriers to saving money.
Everyone who lives paycheck to paycheck still needs to spend money for necessities, such as food, housing, clothes and other key expenses. The challenge for many Americans is sticking to a spending plan that still enables them to save and to create long-term financial health.
ClearStreet is rolling out a new healthcare affordability product to help employees pay for healthcare expenses without resorting to borrowing or delaying necessary treatment. ClearStreet is interested in partnering with employers, financial services firms, healthcare insurers, benefits providers, and organizations committed to helping Americans achieve financial wellness..