Struggles with financial well-being are increasingly relevant as monetary challenges span generations, ethnicities, and education levels, even in this strong economy. Some assume concerns about financial health are exclusively for those of little means, when they actually transcend income levels; a third of individuals making more than $60,000 a year are financially unhealthy. The issue is bigger than most realize—overall 57% of Americans are categorized as financially unhealthy, with 43% of American households reporting that they struggle to pay their bills and make credit payments.¹ Even health and wealth have converged—35% of consumer’s name financial stability their top health priority.
… a third of individuals making more than $60,000 a year are financially unhealthy
In response, personalized financial health plans have been launched by dozens of companies across financial institutions. From Credit Karma’s recent ad series “Your Score Can Do More” showing how improving one’s credit score can have tangible impact on real life scenarios to Financial Wellness Scores from financial institutions across the country, the industry is capitalizing on this consumer need and looking to provide individuals with the personalized guidance they’re searching for.
At Stone, we’re working with partners in the financial services space exploring opportunities to apply financial well-being solutions. In addition to their focus on existing and new customer relationships, many financial services companies are looking inward and considering how they can impact their own employee base. In a study done on behalf of Morgan Stanley in preparation for the release of new enhancements to their Financial Wellness platform ‘Morgan Stanley at Work’, the Financial Health Network found that more than 50% of employees cite financial stress as their biggest concern.2 If employers can offer a path to financial well-being, they can expect a much happier employee base with retention rates up 20-40%.3 By providing financial health education and programs, they are building a stronger connection with their employees-reducing stress, keeping employees healthy, engaged and loyal.
At Stone, we are monitoring the increasing demand for convenient and superior innovations, products and services that make life easier, seamless and alleviate pain points. This consumer behavior is one of 16 megatrends Stone tracks to understand engagement and preferences that drive insights for our clients.
The desire for helpful assistance falls directly under one of 16 megatrends Stone tracks to understand behavior and preferences and drive insights for our clients.
The door is open for employers to support moving their workforce to better financial health as they are cornering the market on trust. According to the 2019 Edleman Trust Barometer, 75% of people said they trusted their employer which ranked much higher than any other source including government, media, and other businesses.
From large financial institutions to small credit unions across the country, filling the gap of financial health guidance is becoming an expected offering. Figuring out how to work within their own organizations as well as how to assist other employers in making these resources more readily available to their employees is a strategy worth considering. Is it right for your business? Let’s talk about it.
Sources:
Reuters
Yahoo Finance