The world is waking up to the fact a vast swathe of the generation coming through are in dire financial straits.
This has significant implications on society at large. Poor financial knowledge leads to poor financial habits, which ultimately leads to poor life decisions, at crucial junctures.
So how do we address this? While many good habits are said to start at home, it’s increasingly being argued, by an emerging group of fintech startups, that good financial habits start at work.
This makes sense when you consider employers are the most significant source of cashflow for the majority of the population. They, more than banks, have a vested interest in ensuring their employees are happy, healthy and functional, and free from money stress – primarily because it leads to increased productivity in the workplace.
This week fintech startup FinFit, an employee wellness platform, announced it had closed a USD $7M Series B raise. The fintech has teamed up with more than 125,000 American businesses, bringing financial educational resources alongside early-wage access and pre-paid Visa products to their employees.
The sector is booming globally. Just a few weeks ago, Australian based cloud HR platform, Employment Hero, closed a AUD $22 million Series C round. While it has a stronger focus on the HR component, financial services are a monetisation strategy the business is pursuing. Their automated pay advance product, InstaPay, allows employees to access a portion of their earned wages before payday.
We can’t afford to not address the financial literacy crisis that is engulfing the world. As our data continues to be increasingly captured, and weaponised ever more effectively to sell us products and modify our behaviour to part us with our money, we need tools that help us fight back. Companies like FinFit, and the growing financial wellness movement is a glimmer of hope on the horizon. Companies like FinFit must find ways to help us hone that willpower muscle. Whether they are enough, is the question.
Daily Fintech Advisers provides strategic consulting to organizations with business and investment interests in Fintech. Jessica Ellerm is a thought leader specializing in Small Business and the Gig Economy and is the CEO and Co-Founder of Zuper, a new superannuation startup in Australia.
I have no commercial relationship with the companies or people mentioned. I am not receiving compensation for this post.
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