Bi-Monthly March 2025
Financial Wellbeing for Employers
What is Financial Wellbeing?
Financial wellbeing is about more than just earning a good salary - it’s the ability to manage money with confidence, stay in control of expenses, debt, and long-term financial goals, and live without constant financial stress. When employees feel secure in their finances, they can plan for the future and focus on what matters most.
Why Does It Matter?
Financial insecurity doesn’t just impact personal life - it affects work performance too. Studies show that financial stress leads to lower productivity, increased absenteeism, and higher levels of anxiety. For employers, supporting financial wellbeing isn’t just a nice-to-have; it’s a strategic advantage. In times of economic uncertainty, companies that help their employees achieve financial stability are better positioned to attract and retain top talent.
This is especially evident in the U.S., where financial wellbeing programs are becoming a key focus for employers. A recent survey found that 92% of employees want more financial support from their employers, with 58% living paycheck-to-paycheck and one in three unable to afford a $500 emergency expense. In response, 72% of U.S. companies plan to enhance financial wellbeing initiatives in 2024, and 84% believe these programs help reduce employee attrition.
How Can Employers Support Financial Wellbeing?
Employers play a key role in fostering financial wellbeing. It’s not just about paying a competitive salary; companies can also provide financial education, offer access to advisory services, or introduce flexible payroll models, such as on-demand salary advances. By creating a supportive environment, businesses show their employees they’re valued - leading to stronger engagement and loyalty.
Fintech Solutions in Financial Wellbeing
The fintech industry has developed innovative solutions to support financial wellbeing. Here are three leading global platforms:
• Nudge - A world-renowned platform combining personalised financial education with practical tools to help employees better understand and manage their finances. Employers can integrate Nudge to offer tailored financial content to their teams.
• FinFit - Focused on holistic financial solutions, FinFit provides education, emergency savings plans, access to loans, and debt consolidation services to prevent financial shortfalls and promote long-term stability.
• LearnLux - A digital-first financial education and advisory platform offering interactive courses and personalised guidance on budgeting, investing, and retirement planning. Companies use LearnLux to enhance financial literacy across their workforce.
Looking Ahead
Financial wellbeing is a key pillar of employee satisfaction and business success. Companies that invest in this area see stronger team engagement and a healthier workplace culture. Fintech solutions like Nudge, FinFit, and LearnLux provide valuable tools, and it will be exciting to see how our partner N26 expands into this space. The neobank is developing a new approach that blends financial wellbeing with modern banking services - we’re looking forward to seeing how it evolves!
Author: Markus Lehleiter, Product Lead HoFT.Berlin
Source: Journal of Accountancy