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.