Use of FinTech in Financial Wellness Programs

Sponsored by MFS Investment Management. 

There is a growing dialogue around the use of technology-based financial education (i.e., FinTech) and financial wellness programs. We know that some recordkeepers provide technology based programs, but were curious what the take-up rate of these programs are and if plan sponsors are providing this technology solely through their recordkeepers and/or advisors or if any are using some of the newer independent third-party providers of these programs.

About half of plan sponsors state they provide some type of technology-based education/financial wellness program to participants and of those that do, most do so through their recordkeeper.

Comments from those who provide a program through their recordkeeper:

• These groups are well-suited to providing good tips and education for participants.
• Excellent tool for our dynamic workforce. We have participants throughout NA, so they can attend from anywhere.
• If you can get people to use consistently, it is beneficial.  Hard to get people to take action.  Have mindset that if I can help just one person, I'm doing good!
• It is up to the enrollees to use this platform
• It provides a one stop visual of your retirement outlook
• It's great as it's available to everyone and accessible at the time needed.
• Probably underutilized by participants
• The tool is great, but i think it's too complicated for regular people so there's hardly any use and/or they're not using it to its full potential.
• They have come out to have one in person session on their managed accounts. We supplement with
• This has been a challenge for us - breaking through the cultural wall of not trusting.
• We think it's helpful.  Employees can optionally take advantage of these resources when convenient or of interest to them.

Comments from those who do not offer a program:

• Nothing at this time, but looking to add in the future
• We are considering adding some resources in 2024.
• We are going to be putting in place one that is offered by our investment advisor.
• We have access to FinTech Educational programs through our recordkeeper, but are trying to determine the best way to use them.  Our MEP-like plan doesn't receive sufficient data from administrators to automate the software.
• We have general education and planning through our recordkeeper but no outside technology within the definition of FinTech.