Challenger Finance Receives $226,000 Grant from State of Colorado for Emergency Savings Accounts for Coloradans
Denver, CO -- Coloradans face a savings crisis. According to the Federal Reserve, 39% of American adults cannot afford a $400 unexpected expense. Common occurrences like a car break-down, a medical expense, or a home repair throw millions into debt each year.
To help address this crisis, The Colorado Office of Economic Development and International Trade (OEDIT) has awarded Challenger Finance, a mission-driven Denver-based fintech, a $226,000 grant to help Colorado employers make the Emergency Savings Account a mainstream employee benefit alongside the 401k. The grant is part of OEDIT’s initiative to promote innovation in Colorado’s Advanced Industries.
“Unexpected financial emergencies hurt individuals, their families, and their employers, but it doesn’t have to be this way,” says Challenger’s CEO Nate Gruendemann. “Employers who work with Challenger are able to help their employees set aside over $1,500 in savings per year with Challenger on average. Emergency Savings Accounts can be a life changing program that promotes saving, prevents debt, and improves quality of life.”
As companies struggle to retain employees in the midst of the “Great Resignation,” Challenger’s program has a proven track record of helping employers prevent turnover. Companies working with Challenger report retention rates that are 26% higher for employees using Challenger Emergency Savings Accounts.
“Support from our home state of Colorado is a significant early step towards driving a vital public policy conversation around emergency savings,” said Gruendemann. “Tax-advantaged accounts for retirement and health savings exclude many Americans who need flexibility in spending and instant access to their money. Challenger is working with employers around the country to create programs for their employees that build financial safety nets and start a habit of saving.”
About Challenger - Challenger Finance Inc. powers employer-sponsored financial products for America’s workforce, starting with emergency savings. Founded in 2019 and headquartered in Denver, Challenger helps employers improve retention while employees build their savings. For more information, contact us at email@example.com