2024 Global Economic Prosperity Challenge
Change Machine’s Recommendation Engine
What is the name of your solution?
Change Machine’s Recommendation Engine
Provide a one-line summary of your solution.
Change Machine is expanding its AI-powered Recommendation Engine to scale its audience, expanding access to inclusive & equitable fintech products.
In what city, town, or region is your solution team headquartered?
NY, United StatesIn what country is your solution team headquartered?
What type of organization is your solution team?
Nonprofit
Film your elevator pitch.
What specific problem are you solving?
Financial insecurity is a pervasive challenge faced by low-income individuals and families, a root cause for various social issues addressed by social service organizations worldwide. The impact of financial insecurity is profound, affecting millions of individuals and families, hindering their social well-being and economic mobility.
Change Machine is a direct response to the pervasive issue of financial insecurity in the United States, affecting 45% of the population and disproportionately impacting Black, Latino, and women-led households. According to the Aspen Institute, only half of U.S. adults consistently maintain positive cash flow, and over 58% of workers earning less than $60,000 annually struggle to handle a $400 emergency. This financial insecurity creates an urgent demand for support from social service organizations. However, a critical gap exists, limiting the ability of nonprofit and governmental agencies and their practitioners to address this multifaceted issue effectively.
We address this challenge by empowering practitioners to become adept financial coaches and bridging the training gap through practical strategies for increased savings, reduced debt, and improved credit. Recognizing the crucial role of fintech in closing racial and gender wealth gaps, especially with its recent mass adoption, we strive to ensure the equitable impact of this paradigm shift.
According to data from Change Machine's users, the clients and communities they serve overwhelmingly face financial insecurity, with our internal data demonstrating that 78% of practitioners' clients are BIPOC, 66% are women, and 84% earn less than $45,000 per year. These individuals often lack access to traditional financial services and face challenges in managing debt, saving, and improving their credit scores. The scale of the problem is vast, impacting millions of individuals who are striving to achieve financial stability and security.
The factors contributing to financial insecurity are multifaceted, including limited access to financial resources, lack of financial education, and systemic barriers that prevent individuals from building wealth and financial resilience. Additionally, the prevalence of misinformation, predatory financial products, and inadequate support systems further exacerbate the challenges faced by low-income communities.
In response to these challenges, Change Machine has developed a groundbreaking solution in the form of its Recommendation Engine. This innovative technology leverages AI and data analytics to provide personalized recommendations for fintech products and services tailored to the unique financial goals and needs of clients. By harnessing the power of technology, the Recommendation Engine aims to empower financial coaches and practitioners to guide their clients towards improved financial outcomes and increased financial security.
The Recommendation Engine addresses the core issues of financial insecurity by facilitating access to inclusive and equitable fintech products that can help individuals build savings, reduce debt, and enhance their credit scores. By offering tailored recommendations based on individual financial profiles and goals, the Engine enables practitioners to support their clients in making informed financial decisions and taking steps towards financial security.
What is your solution?
Change Machine's AI Recommendation Engine serves a diverse target population, primarily consisting of low to moderate-income individuals, with a focus on historically marginalized communities, including Black, Indigenous, People of Color (BIPOC) and women. These individuals face significant financial insecurity due to various systemic barriers that limit their access to traditional financial services and resources. They are often underserved by mainstream financial institutions and lack the necessary support to navigate complex financial systems effectively.
The AI Recommendation Engine directly impacts the lives of these individuals by providing personalized and inclusive recommendations for fintech products tailored to their specific financial goals and needs. By leveraging artificial intelligence to analyze customer data, the recommendation engine offers relevant and equitable financial solutions that empower users to make informed decisions about their financial well-being. This personalized approach helps clients build savings, reduce debt, and improve their credit scores, leading to increased financial security and stability.
One key aspect of the solution is its focus on promoting financial inclusion and equity among underserved populations. By offering recommendations that are inclusive of diverse experiences and needs, the recommendation engine ensures that all users have access to fintech products that meet their unique requirements. This approach addresses the current gaps in the financial services sector, where many individuals, especially those from marginalized communities, struggle to find suitable and affordable financial products.
Moreover, the AI Recommendation Engine enhances the agency and autonomy of users by providing them with the tools and resources needed to take control of their financial futures. By empowering individuals to make informed decisions about their finances, the solution enables them to navigate life choices more effectively and work towards achieving their long-term financial goals. This increased agency not only improves individual financial outcomes but also contributes to broader community resilience and economic empowerment.
The recommendation engine is not just a static tool but a dynamic system that continuously learns and adapts based on user interactions and feedback. Developed in collaboration with IBM under the IBM Data and AI for Social Impact program, the engine incorporates machine learning classification models that customize recommendations for each user. This self-learning system is based on Trusted AI principles, ensuring that the rationale behind each recommendation is explainable and transparent.
The success of the AI-powered recommendation engine is evident in the high user engagement rate, with a 98% user rate indicating the relevance and effectiveness of the recommendations. This advanced technology has not only increased product uptake but has also strengthened the relationships between practitioners and their clients, fostering trust and improving financial outcomes.
Looking ahead, Change Machine is committed to expanding the reach of the AI Recommendation Engine beyond the Salesforce platform to our LEARN and SHARE platforms. By making this powerful technology accessible to a broader audience of practitioners, Change Machine is advancing its mission of closing the gender and racial wealth gap through inclusive and equitable financial coaching practices.
Who does your solution serve, and in what ways will the solution impact their lives?
Change Machine's AI Recommendation Engine serves a diverse target population, primarily consisting of low to moderate-income individuals, with a focus on historically marginalized communities, including Black, Indigenous, People of Color (BIPOC) and women. These individuals face significant financial insecurity due to various systemic barriers that limit their access to traditional financial services and resources. They are often underserved by mainstream financial institutions and lack the necessary support to navigate complex financial systems effectively.
The AI Recommendation Engine directly impacts the lives of these individuals by providing personalized and inclusive recommendations for fintech products tailored to their specific financial goals and needs. By leveraging artificial intelligence to analyze customer data, the recommendation engine offers relevant and equitable financial solutions that empower users to make informed decisions about their financial well-being. This personalized approach helps clients build savings, reduce debt, and improve their credit scores, leading to increased financial security and stability.
One key aspect of the solution is its focus on promoting financial inclusion and equity among underserved populations. By offering recommendations that are inclusive of diverse experiences and needs, the recommendation engine ensures that all users have access to fintech products that meet their unique requirements. This approach addresses the current gaps in the financial services sector, where many individuals, especially those from marginalized communities, struggle to find suitable and affordable financial products.
Moreover, the AI Recommendation Engine enhances the agency and autonomy of users by providing them with the tools and resources needed to take control of their financial futures. By empowering individuals to make informed decisions about their finances, the solution enables them to navigate life choices more effectively and work towards achieving their long-term financial goals. This increased agency not only improves individual financial outcomes but also contributes to broader community resilience and economic empowerment.
In summary, Change Machine's AI Recommendation Engine serves a diverse target population of low to moderate-income individuals, particularly focusing on historically marginalized communities. By providing personalized and inclusive recommendations for fintech products, the solution directly impacts users' lives by promoting financial inclusion, empowering individuals to make informed financial decisions, and enhancing their overall financial security and well-being. Through this innovative technology, Change Machine is working to bridge the gap in financial services and empower underserved populations to achieve greater financial agency and stability.
How are you and your team well-positioned to deliver this solution?
Since our founding, Change Machine has prioritized the goals and realities of marginalized communities who navigate financial insecurity: In the field’s only clinical study of financial coaching, our model produced evidence of impact because centering clients as experts in their own lives is central to our methodology. We apply this intersectional equity focus to the partnerships we form and the technology platform we develop. Further, we leverage our partners as subject matter experts and platform data to advance systems and narratives that address the enduring effects of slavery and oppression, remove barriers to financial security, and shrink gender and racial wealth gaps.
We’re working in a highly nuanced field, and our team reflects that. Change Machine is fiercely proud that the platform was “by practitioners, for practitioners” because most of us have served in the very roles that our product supports, and so have a comprehensive understanding of the huge challenges we’re addressing. As a nonprofit, we’ve had to prioritize social outcomes over all else, but as a social enterprise, we’ll be structured in a way that allows us to optimize for financial outcomes without demoting the priority of social outcomes. As such, we’ve also added roles that draw on deep experience in product marketing and customer success from other purpose-driven software companies.
Our senior leadership team consists of:
Mae Watson Grote, Founder and CEO: Mae is a pioneering leader in financial security, having founded one of the United States' first organizations in this sector 19 years ago, dedicated to advancing equitable fintech solutions and financial empowerment for low-income communities.
David Bautista, Chief Product Officer: David specializes in Product & Engineering, bringing a decade of expertise in fintech, financial empowerment, and equity-focused technology, coupled with an in-depth background in product management and web application architecture.
Melissa King, Customer Success Manager: Melissa is experienced in SaaS Customer Success and fast-paced lean startups, Melissa excels at streamlining operations, enhancing engagement, and driving customer adoption and evangelism. With a keen focus on company growth and customer experience, she helps facilitate win-win outcomes for companies and clients.
Tony Perez, Product Marketing Manager: Tony brings over 10 years of experience across marketing and revenue, driving growth through cross-functional collaboration, strategic marketing and planning, and partnership development, most recently at an AI-driven B2B.
Which dimension of the Challenge does your solution most closely address?
Foster financial and digital inclusion by supporting access to credit, digital identity tools, and insurance while securing privacy and personal data.Which of the UN Sustainable Development Goals does your solution address?
What is your solution’s stage of development?
GrowthWhy are you applying to Solve?
Change Machine is applying to MIT Solve to leverage its expertise and network to overcome specific barriers and accelerate the impact of our innovative solution. While funding is a critical component, our primary goal in applying to Solve is to access a diverse range of partners who can provide both monetary and non-monetary support to help us scale our solution effectively. Here are the key areas where we believe Solve can assist us:
Financial Support:
Change Machine seeks financial support to enhance our platform's Recommendation Engine through Generative AI products. The funding from Solve will enable us to integrate this technology into our SHARE and LEARN platforms, significantly expanding the reach of our fintech Seal of Inclusivity. By building a smaller model on IBM Watson or similar infrastructure, we aim to provide practitioners with real-time access to relevant fintech products, empowering them to make informed recommendations to clients. Solve's financial backing will facilitate the development, implementation, and evaluation of this critical enhancement, ensuring that our platform remains at the forefront of inclusive financial coaching.
Technical Expertise:
Solve's network of partners includes leading experts in technology and AI, offering us the opportunity to collaborate with top professionals in the field. By tapping into Solve's technical resources, we can further refine our AI-powered Recommendation Engine, ensuring that it delivers accurate and relevant fintech recommendations to practitioners. Additionally, Solve's technical expertise can help us optimize data analytics, enhance user experience, and streamline platform performance, ultimately benefiting both practitioners and clients.
Legal and Cultural Guidance:
Navigating legal and cultural considerations is essential for the successful implementation of our solution. Solve can connect us with legal experts who specialize in fintech regulations, ensuring that our platform complies with industry standards and safeguards user data. Moreover, Solve's diverse community can provide valuable insights into cultural nuances that may impact the adoption of fintech solutions in different communities. By leveraging Solve's legal and cultural guidance, Change Machine can tailor its platform to meet the unique needs of various user groups, fostering greater inclusivity and accessibility.
Market Expansion:
Solve's platform offers a gateway to new markets and opportunities for collaboration. By becoming a Solver, Change Machine can showcase its innovative approach to financial coaching and attract potential partners, investors, and clients. Solve's global reach and reputation can help us expand our presence in diverse regions, reaching underserved communities and amplifying our impact on a larger scale. Through Solve's network, we aim to forge strategic partnerships, secure additional funding, and explore new avenues for growth and sustainability.
In conclusion, Change Machine's application to Solve is driven by the desire to access a comprehensive support system that goes beyond funding. We believe that Solve's multidimensional approach to problem-solving aligns with our mission to empower practitioners, enhance financial security, and promote equity in the fintech space. By collaborating with Solve and its network of partners, Change Machine aims to overcome barriers, accelerate innovation, and create lasting impact in historically marginalized communities.
In which of the following areas do you most need partners or support?
Who is the Team Lead for your solution?
Mae Watson Grote
What makes your solution innovative?
Our innovative solution, the Recommendation Engine, represents a groundbreaking approach to addressing financial insecurity in historically marginalized, low-income communities. The Recommendation Engine is a key component of our platform at Change Machine, designed to revolutionize the way financial coaches interact with their clients and recommend fintech products. This AI-powered tool is a game-changer in the field of financial coaching, offering personalized and inclusive recommendations to clients based on their unique financial goals and circumstances.
The Recommendation Engine stands out for several reasons. Firstly, it leverages cutting-edge AI technology developed by IBM to analyze customer data and provide tailored recommendations. By harnessing the power of AI, the engine can process vast amounts of information quickly and accurately, leading to more relevant and effective suggestions for clients. This level of personalization is unprecedented in the financial coaching industry and sets a new standard for client-centered service delivery.
Moreover, the Recommendation Engine is people-powered, reflecting the insights and experiences of both financial coaches and customers. This collaborative approach ensures that the recommendations are not only data-driven but also culturally competent and inclusive. By incorporating diverse perspectives into the recommendation process, the engine can offer a wide range of fintech products that meet the specific needs of clients from different backgrounds and communities.
One of the most innovative features of the Recommendation Engine is the Seal of Inclusivity (SOI), which serves as a quality assurance mechanism for the recommended products. The SOI is helmed by customers and nonprofit leaders who act as gatekeepers, filtering products through an equity lens and elevating only those that are inclusive and equitable to low-income communities. This unique approach ensures that the fintech products recommended by the engine are not only effective but also aligned with the values of financial security and equity.
The innovative design of the Recommendation Engine has the potential to catalyze broader positive impacts in the financial coaching space and beyond. By setting a new standard for personalized and inclusive recommendations, the engine can inspire other organizations and practitioners to adopt similar approaches in their service delivery. This shift towards more client-centered and culturally competent practices could transform the market landscape, leading to a more equitable and inclusive financial services industry.
In conclusion, the Recommendation Engine represents a paradigm shift in the way financial coaching is conducted, offering a transformative solution to address financial insecurity in low-income communities. With its AI-powered technology, people-powered design, and focus on inclusivity, the engine has the potential to revolutionize the financial services sector and empower individuals to achieve greater financial security and agency in their lives.
Describe in simple terms how and why you expect your solution to have an impact on the problem.
Our impact goals at Change Machine are centered around creating a transformational impact on people's lives by addressing financial insecurity in historically marginalized communities. We aim to empower individuals to achieve greater financial security and improve their overall well-being. To measure our progress towards these impact goals, we track specific indicators that align with the UN Sustainable Development Goals (SDGs) related to poverty reduction, economic empowerment, and financial inclusion.
One of our key impact goals is to increase savings, reduce debt, and improve credit scores for individuals utilizing our platform. These financial outcomes are crucial indicators of improved financial well-being and stability. By tracking the average savings, debt reduction, and credit score increase of our clients, we can assess the effectiveness of our financial coaching interventions. These indicators directly contribute to SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth) by promoting economic stability and empowerment.
Another impact goal is to enhance the financial capabilities and agency of individuals, particularly those from low-income and BIPOC communities. We measure this by evaluating the progress of our practitioners in building their financial coaching skills and knowledge. The number of practitioners completing training modules, participating in community discussions, and implementing financial coaching best practices are key indicators of our impact on building financial capabilities. This aligns with SDG 4 (Quality Education) and SDG 10 (Reduced Inequalities) by promoting inclusive and equitable access to financial education and resources.
Furthermore, we aim to foster a supportive and collaborative community of practice among practitioners to amplify the impact of our platform. The engagement levels within our community forums, the number of shared success stories, and the adoption of best practices by practitioners are essential indicators of community building and knowledge sharing. This contributes to SDG 17 (Partnerships for the Goals) by promoting collaboration and knowledge exchange among stakeholders in the financial inclusion space.
In addition to these indicators, we also track organizational development outcomes, such as stakeholder engagement, policy wins, and fundraising goals achieved. These indicators help us assess the broader impact of our platform on the social service sector and the financial coaching ecosystem. By monitoring these outcomes, we can demonstrate the scalability and sustainability of our solution while contributing to SDG 9 (Industry, Innovation, and Infrastructure) by fostering innovation in financial services.
Overall, our impact goals are focused on improving financial security, enhancing financial capabilities, and fostering community collaboration. By measuring our progress through these specific indicators aligned with the UN SDGs, we can effectively track our impact and drive meaningful change in the lives of individuals and communities facing financial insecurity.
What are your impact goals for your solution and how are you measuring your progress towards them?
Our impact goals at Change Machine are centered around creating a transformational impact on people's lives by addressing financial insecurity in historically marginalized communities. We aim to empower individuals to achieve greater financial security and improve their overall well-being. To measure our progress towards these impact goals, we track specific indicators that align with the UN Sustainable Development Goals (SDGs) related to poverty reduction, economic empowerment, and financial inclusion.
One of our key impact goals is to increase savings, reduce debt, and improve credit scores for individuals utilizing our platform. These financial outcomes are crucial indicators of improved financial well-being and stability. By tracking the average savings, debt reduction, and credit score increase of our clients, we can assess the effectiveness of our financial coaching interventions. These indicators directly contribute to SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth) by promoting economic stability and empowerment.
Another impact goal is to enhance the financial capabilities and agency of individuals, particularly those from low-income and BIPOC communities. We measure this by evaluating the progress of our practitioners in building their financial coaching skills and knowledge. The number of practitioners completing training modules, participating in community discussions, and implementing financial coaching best practices are key indicators of our impact on building financial capabilities. This aligns with SDG 4 (Quality Education) and SDG 10 (Reduced Inequalities) by promoting inclusive and equitable access to financial education and resources.
Furthermore, we aim to foster a supportive and collaborative community of practice among practitioners to amplify the impact of our platform. The engagement levels within our community forums, the number of shared success stories, and the adoption of best practices by practitioners are essential indicators of community building and knowledge sharing. This contributes to SDG 17 (Partnerships for the Goals) by promoting collaboration and knowledge exchange among stakeholders in the financial inclusion space.
In addition to these indicators, we also track organizational development outcomes, such as stakeholder engagement, policy wins, and fundraising goals achieved. These indicators help us assess the broader impact of our platform on the social service sector and the financial coaching ecosystem. By monitoring these outcomes, we can demonstrate the scalability and sustainability of our solution while contributing to SDG 9 (Industry, Innovation, and Infrastructure) by fostering innovation in financial services.
Overall, our impact goals are focused on improving financial security, enhancing financial capabilities, and fostering community collaboration. By measuring our progress through these specific indicators aligned with the UN SDGs, we can effectively track our impact and drive meaningful change in the lives of individuals and communities facing financial insecurity.
Describe the core technology that powers your solution.
At Change Machine, we are committed to harnessing the power of technology to address financial insecurity and empower individuals in historically marginalized communities. Our core technological platform is Salesforce, a robust customer relationship management (CRM) system that serves as the backbone of our operations. Salesforce enables us to efficiently track and manage client data, outcomes, and interactions, providing practitioners with the tools they need to deliver impactful financial coaching services.
In addition to Salesforce, we have integrated IBM Watson, a cutting-edge artificial intelligence (AI) platform, into our ecosystem to enhance our capabilities further. IBM Watson's AI analysis of customer data has revolutionized the way financial coaches interact with clients. By leveraging AI-driven insights, our practitioners can now offer personalized and relevant fintech product recommendations to their clients, leading to improved financial outcomes and increased client engagement.
Our collaboration with the IBM Data Elite team has been instrumental in advancing our technological capabilities. Through the IBM Data and AI for Social Impact program, we have received invaluable support in developing machine learning classification models that power our recommendation engine. These models are self-learning and based on Trusted AI principles, ensuring transparency and explainability in the recommendations provided to clients.
The engagement with the IBM Data Elite team has not only enhanced the functionality of our platform but has also opened up new possibilities for innovation. By tapping into IBM's expertise in data science and AI, we have been able to optimize our data analytics processes, identify patterns and trends, and make data-driven decisions that drive positive outcomes for our clients.
The integration of IBM Watson and the collaboration with the IBM Data Elite team have significantly elevated our technological capabilities and positioned us at the forefront of leveraging AI for social impact. The AI-powered recommendation engine, backed by IBM's advanced technologies, has transformed the way financial coaching is delivered, making it more personalized, effective, and inclusive.
As we continue to innovate and expand our technological platform, we remain committed to using technology as a force for good, driving positive change in the lives of individuals facing financial insecurity. Our partnership with IBM exemplifies our dedication to leveraging cutting-edge technologies to empower practitioners, enhance client outcomes, and advance financial security for low to moderate-income communities. Through our continued collaboration with IBM and other technology partners, we are confident that we can further scale our impact and drive meaningful change in the fight against financial insecurity.
Which of the following categories best describes your solution?
A new business model or process that relies on technology to be successful
Please select the technologies currently used in your solution:
If your solution has a website or an app, provide the links here:
https://change-machine.org/
How many people work on your solution team?
9 full-time staff
3 part-time staff
How long have you been working on your solution?
Change Machine's platform launched in 2017 and the beta version of the Recommendation Engine was introduced in 2020.
Tell us about how you ensure that your team is diverse, minimizes barriers to opportunity for staff, and provides a welcoming and inclusive environment for all team members.
Since our founding and reflected in our current user data, as well as their clients, the primary beneficiaries of the Recommendation Engine, Change Machine has prioritized the goals and realities of Black and Brown women who navigate financial insecurity. We apply this intersectional equity focus to the partnerships we form and the technology platform we develop. Further, we leverage our nationwide network of national, regional, and local partnerships as well as our platform to advance systems and narratives that address the enduring effects of slavery and oppression, remove barriers to financial security, and shrink gender and racial wealth gaps. In addition to the centrality of racial and gender equity to our mission and vision, Change Machine actively invests in our DEI infrastructure, starting with internal processes and practices. These include org-wide learning, personal and professional development, human resources (including board and staff recruitment and advancement), and internal systems.
To ensure this work is embedded in all of our procedures, policies, and culture we have established an internal Racial Equity Diversity and Inclusion Group (REDI) that includes staff at all levels of the organizations and from a diversity of intersectional identities. The vision is to cultivate an environment for our staff to apply their strengths, excel in their purpose and produce their best work. We are people-first technologists who are only successful when others have better outcomes after having engaged with us.
What is your business model?
Business Model:
Our business model at Change Machine revolves around providing value to historically marginalized communities by offering financial coaching services through our innovative Financial-Coaching-as-a-Service (FCaaS) platform. This platform is tailored for Social Service Organizations, enabling them to seamlessly integrate financial coaching into their service delivery models for low-income communities. By incorporating financial coaching into case managers' services, we empower organizations to enhance the skills of their existing staff swiftly, easily, and cost-effectively, delivering tangible and immediate results.
Key Customers and Beneficiaries:Our key customers are social service organizations and practitioners working with low-income communities. These organizations and practitioners benefit from our platform by gaining access to evidence-based financial coaching strategies, technology development, training, and organizational resources. By utilizing our platform, they can effectively address the financial insecurity faced by their clients, leading to improved financial outcomes such as increased savings, reduced debt, and improved credit scores.
Products and Services:We provide an all-in-one FCaaS platform that serves as a central hub for financial coaching services. This platform offers gold-standard best practices, coaching strategies, and a specialized social network for practitioners. Through our platform, practitioners can access tools and resources to enhance their financial coaching skills and support their clients in achieving financial security.
Value Proposition:Our products and services are designed to empower practitioners to become adept financial coaches and bridge the training gap in addressing financial insecurity effectively. By offering a comprehensive platform that combines technology, training, and resources, we enable practitioners to deliver high-quality financial coaching services to their clients, ultimately leading to improved financial well-being for low-income individuals and families.
Revenue Model:Our revenue model is based on a subscription-based SaaS model, where social service organizations pay a fee to access and use our FCaaS platform. Additionally, we generate revenue through partnerships, grants, and impact investments to support the growth and sustainability of our mission.
Impact:Our business model not only generates revenue but also creates significant social impact by addressing the pervasive issue of financial insecurity in historically marginalized communities. By providing accessible and scalable financial coaching services, we contribute to building financial security and empowering individuals to navigate their financial challenges effectively.
In summary, our business model focuses on providing value to social service organizations and practitioners by offering innovative financial coaching services through our FCaaS platform. Through this model, we aim to drive positive social impact and financial empowerment for historically marginalized communities.
Do you primarily provide products or services directly to individuals, to other organizations, or to the government?
Organizations (B2B)What is your plan for becoming financially sustainable, and what evidence can you provide that this plan has been successful so far?
Change Machine's Financial Coaching as a Service (FCaaS) model is designed to ensure long-term financial sustainability through a combination of revenue streams that cover operational expenses and support continued growth. Our revenue model primarily consists of annual subscription contracts with two key customer segments: Direct-to-Practitioner (DTP) and Enterprise (ENT).
The DTP contracts involve community-based organizations utilizing the Change Machine platform, generating $160,000 in annual recurring revenue. These contracts have an average value of $3,900 and include 8 licenses on average, totaling 222 active licenses. On the other hand, the ENT contracts are with large funders and foundations subsidizing access to Change Machine for their beneficiary organizations. This segment brings in $400,000 in annual recurring revenue, with an average contract value of $150,000. Currently, there are 3 clients subsidizing the platform for a total of 211 organizations, with each ENT contract including 900 licenses on average, totaling 1,600 active licenses.
To achieve financial sustainability, we plan to leverage these revenue streams to cover operational costs and drive profitability. The investment funds will be allocated strategically to key areas such as personnel costs for software development, customer acquisition, and customer success. Technology costs will be increased to enhance platform capabilities, and sales and marketing efforts will be intensified to drive revenue growth and reduce reliance on philanthropic funding.
Our successful track record in funding our work includes partnerships with notable organizations such as JPMorgan Chase & Co., MetLife Foundation, and Prudential Foundation. These collaborations have resulted in substantial financial support, enabling us to expand our reach and impact within the social service sector. Additionally, our revenue growth has been significant, with up to $500,000 in recurring subscription revenue achieved over the past 6 years.
By continuing to strengthen our revenue streams, optimize operational efficiency, and invest in growth initiatives, we are confident in our ability to achieve financial sustainability in the long term. The success of our FCaaS model, coupled with strategic partnerships and a clear focus on revenue generation, positions Change Machine for continued growth and impact in the social service sector.
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Change Machine