The past decade has seen dramatic changes in the banking marketplace as consumers look for digital tools to help them easily access and manage their funds. As a result of this shift, as well as a greater focus on the evolving needs of the worker amid an inflection point in the labor market, employers are increasingly interested in helping employees with financial wellness. A financially stable worker is often more productive and providing financial wellness programs can also help employers attract and retain good talent.
The rise of mobile finance
The digitalization of financial services is moving rapidly. According to the FDIC, mobile banking as the primary way of accessing bank accounts has increased steadily from 9.5% in 2015 to 15.6% in 2017, then doubled to 34% in 2019. Consumers have become used to transacting via mobile phone apps for shopping, transportation and food, and have come to expect the same experience from financial institutions. Some — especially millennials and Gen Z — often don’t have a bank account at all. These unbanked or underbanked individuals are comfortable using modern tools that enable payments outside of the traditional banking system.
