The employer is becoming more focused towards employee monetary wellness
The US financial wellness benefits market is evolving with a new-generation of employees (Millennials) entering workplaces. The employer and the employee are now more focused on financial stability and wellness. The employers are offering financial education on a range of topics such as insurance basics, cash flow management, budgeting, and investments among others. Interestingly, a two-third of these programs are sponsored by employers themselves. Further, vendors have launched several wellness-oriented programs to supplement financial education of employees. For instance, Best Money Moves enables employers to identify the source of financial stress through its Stressometer, which measures several types of financial stress, ranging from bankruptcy to student loan and provides customized solutions.
Several prominent and established players are introducing new models in the U.S. financial wellness benefits market
The financial wellness benefits market is becoming increasingly data-driven. Organizations are investing in technology and expanding HR capabilities to measure financial initiatives. The vendors in the market are reviewing the employee’s information and productivity data to get insights about their finance management. Wearables, onsite program delivery, software platforms, employee feedback, online screening and surveys, and other data sources are being used to garner insights into the programs and help employees to understand more about managing finances. Several new and established players such as Hellowallet, LearnVest, SmartDollar along with non-profit providers such as Enrich and GreenPath Financial Wellness are introducing new models in the market. Also, Google offers several resources along with access to monetary planning services and advisers.
U.S. Financial Wellness Benefits Market Segmentation
This research report includes a detailed segmentation by types, end-users, and delivery.
INSIGHTS BY TYPE
Investment and financial planning firm offers a CFP-provided series of programs that are designed to educate participants about investing, debt, and retirement income planning
Financial planning, education and counseling, retirement planning, debt management, and others are the major segments of the U.S. financial wellness benefits market. The planning segment has dominated the market and is expected to grow at a CAGR of around 12% during the forecast period. It includes assistance and advice on budgeting, devising investment strategies, and long-term planning of finances. A larger part of the workforce is looking at their long-term monetary future as opposed to focusing on short-term stressors and seeking for the tools such as budgeting applications and action plans for a better economic outcome. Companies are onboarding finance planning advisors and asset managers, which is boosting the growth of the segment. Nowadays, vendors are launching several economical plans and offers. For instance, Korving & Co. offers a CFP-provided series of programs that are designed to educate participants about investing, debt, and retirement income planning.
Financial education and counseling programs are increasing in the US. The personalized counseling is growing at a healthy rate, surpassing online counseling since counselors can easily adopt to various types of workers and present optimal finance solutions.
INSIGHTS BY END-USER
Several fintech organizations have entered in the market, offering comprehensive finance and wellness benefits tools to medium-sized organizations
Large, medium-sized, and small-sized business are the major end-users. Large companies have invested more in the wellness program, and the segment is expected to growing at a CAGR of around 13% during the forecast period. Recently, large companies have started offering voluntary monetary benefits to employees, occasionally with cash incentives in order to aid the employee's money management. The offerings are designed based on Fortune 1000 companies and comprise online tools, personalized counseling, and a routine check on personal financial metrics.
Medium-sized business is the second-largest end-user of the market. Due to the intensifying competition in the labor market, quit rates are nearing pre-recession levels. Hence, employee wellness programs are gaining momentum and an economic way to retain the employee. In the last few years, several fintech, for-profit, and non-profit companies and organizations have entered in the market, offering comprehensive tools to medium-sized organizations.
INSIGHTS BY DELIVERY
The online/digital mode is an emerging delivery platform that offers customized financial roadmaps to employees
The delivery segment is divided into one-on-one, online/digital, and group. One-on-one assistance is gaining popularity and is growing at a CAGR of around 13%. Employees are seeking one-on-one interaction as it provides clarity about finances. Hence, advisors are catching up with employees at regular intervals via phone or personal meetings, which includes web-based platforms or classroom sessions.
The online/digital mode is an emerging delivery platform in the market. Financial education with games and goal tracking, account management tools (such as to facilitate automatic allocations) real-time chat sessions, and interactive savings products are some commonly used online services. For instance, LINK from Prudential offers a customized financial roadmap by allowing employees to choose what fit their needs and enable them to connect with advisors online via video, phone, or in person.
The U.S. financial wellness benefits market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Education and Counseling
- Retirement Planning
- Debt Management
- Large Business
- Medium-sized Business
- Small-sized Business