Financial Self-Reliance in 2020: Identification and prevention

People whose debts keep them up at night are at a high risk of social isolation, either because of shame or because they are financially unable to participate. That’s why Rabo Foundation works to fight poverty and debt in the Netherlands.

In our society, people are still hesitant to talk about financial issues. We therefore finance innovative initiatives that can help prevent financial problems from occurring (through education and computer skills, for example), and solutions that break down the taboo on money problems.

Digital technology presents opportunities to tackle problems more efficiently and to reach more people in less time. We therefore accelerate technological innovation by supporting social fintechs.

Through the Financial Self-Reliance program, we have supported projects that fight poverty and debts for almost 10 years now. In the process, we have learned that we not only need to help people get out of their financial problems; we also need to find solutions to identify and prevent financial problems before they get worse. To do that, we have refined our strategy in 2020. By investing in the three areas of early intervention, breaking down taboos and supporting fintechs and collaboration, we aim to add more value and achieve an even greater impact.

Many of our partners faced a new, uncertain situation due to the coronavirus pandemic in 2020. They had difficulty getting in contact with their target group, or their work was threatened by financial shortfalls. We have therefore set up a coronavirus emergency fund for our partners in difficulties due to the pandemic. The fund allows them to invest in improvements such as digital solutions to reach their target groups. One example is the theatre troop PlayBack, which gives interactive productions at secondary schools. We also helped SchuldHulpMaatje with financing to accelerate their digitisation efforts.

In 2020, we began supporting three partners that focus on financial education. One project by Mon€y School helps children and their parents become more financially resilient. We also supported a pilot by Young Originals, which provides young people with a coach to help them with a variety of life issues, including money. And we collaborated with the ‘How to Get Rich’ project by Moneystart, which brings 16- and 17-year-olds into contact with experts who help them deal with money and avoid making bad choices.

When we support a project, we also measure how many people it reaches. We have therefore noticed that our partners for early intervention and prevention are exceptionally effective at reaching their target group. Their share of our total reach is increasing dramatically, so our strategy of investing more in prevention has been a success.

Our partners highly appreciate that we also offer our network, as well as financial support. We bring organizations together so that they can learn from one another, reach more people, and therefore have a greater impact. The collaboration within the Nederlandse Schuldhulproute, which gained shape in part thanks to our efforts, is one excellent example.

Digitisation is growing rapidly in the social domain, and that includes the areas of financial problems and debts. There is plenty of data available, and new technologies are being developed to reach more people or organize processes more efficiently. Rabo Foundation will continue to accelerate these efforts in 2021. To that end, we aim to collaborate with a variety of partners, including the Social Fintech Alliance, which combines the efforts of several fintech parties. We also provide financial support to social fintechs with promising projects. In so doing, we help the entire chain to innovate.