Financial equality software that prevents financial inequalities born out of parenthood, particularly for women
Financial inequalities born out of parenthood, particularly for women. The gap in average lifetime earnings for men and women is substantial, with women receiving, on average, 59% of men's average lifetime earnings. The way families divide responsibilities, such as parental leave, part-time work, and staying home with sick children, could give rise to economic inequalities between the partners, leading to a sub-optimal relationships where one is more economically dependent on the other. What if there were a digital solution that could support families to become more financially equal?
What is the Solution?
Charly aims to help women achieve financial freedom by building equitable financial products for households. By helping parents understand the economic effect of how they divide family responsibilities such as parental leave, part-time work and staying home with sick children, Charly wants to create financial freedom for women and improve the lives of families. The parent who spends most time at home with the children, on average receives EUR 135,000 less in lifetime income.
With a unique platform, calculating and visualizing the economic effect these choices have on lifetime income, Charly offers a "Love Insurance" to compensate for the inequalities. The insurance is a long-term savings plan in which the partners, together as a couple, set aside savings to make up for the unequal division. The insurance also ensures financial compensation in case of separation or divorce. With the mission to bring financial freedom to women and reducing the gap between men and women's lifetime income, Charly’s solution gives families the opportunity to take action and become more financially equal.
What EQT Foundation loves about Charly
Despite earning less over the lifetime, partly due to pressing the pause button on their careers to have children, women constitute an untapped market for banks in terms of saving accounts. What we found genius with Charly’s solution, is that it is offered free of charge to the users, while it unlocks new customer segments for banks, who is the paying customer of this business model. It increases the transparency for couples, and although the laws and regulations for ensuring financial equity are different across countries the core concept of their business model is scalable - and we are excited to support Charly in bringing their financial products to the markets where EQT is present.
Disclaimer: EQT Foundation has invested in Charly from their impact-first investment arm.
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