Why financial wellbeing tools matter to employees

‘Money makes the world go round’.

As we continue to dip in and out of a cost-of-living crisis, educating employees on the importance of financial wellbeing is becoming a vital necessity. From the financially savvy to those that live in the moment, we all have a different idea of how to use our money and how it impacts our lives.

But how can we better support employees? What does the future of financial wellbeing look like with the introduction of Artificial Intelligence?

As part of our series of expert Q&As, we sat down with Money Guided’s Rich Ormond to discuss the ins and outs of financial wellbeing, and to find out a little more about our Marketplace partner.

Zest: Why is it important for employers to offer financial wellbeing tools and services to colleagues?

MG: Offering financial wellbeing tools and services is important because money stress can negatively impact employees’ mental health and productivity. When employers provide support, such as budgeting tools, debt management assistance and education, it helps colleagues feel more secure, motivated and it allows them to focus on their work. This can lead to improved productivity and staff retention.

And following on from that, how can employees benefit from these types of offerings as part of a benefits package?

The features of a comprehensive financial wellbeing tool can benefit employees in a number of ways:

1. Setting life goals, both big and small, creates a focal point that can motivate people to make positive changes
2. These changes can then be reflected in better budgeting habits, allocating their expenditure to the things that are important to them
3. Improved budgeting leads to better financial security
4. Which, in turn, reduces stress and anxiety related to their financial situation

The Money Guided app aims to improve our members’ relationship with their money, create engagement and build an internal locus of control.

What sort of steps should employers be taking to help their employees through what many perceive to be a cost-of-living crisis?

We recognise there’s only so much that an employer can do to help. Rising prices don’t just affect individuals – companies also have to cut their cloth accordingly.

When things are tight, we all have to make the most of the money we have. Therefore, employers can help their staff make their money go further by providing access to financial guidance and education.

But this only goes so far and education on its own is not enough. Rather, information needs to be personalised and available where they are, when they need it.

The support package needs to be thought through and coherent, with different features of the package working together, rather than a scattergun or tick box approach which invariably just leads to a waste of time and money for everyone.

How is AI starting to impact the financial wellbeing tools and services available?

During the initial hype over AI, there seemed to be consensus that AI would ‘take over’.

However, we believe that the most powerful use of AI is to augment existing propositions, rather than replace them.

AI can be used to turbo charge the personalisation of financial wellbeing tools and services, creating more engagement and better outcomes for individuals.

We all lead busy lives – the world seems to be spinning ever faster. AI is always on, ready to support people wherever they are, whenever they need help.

And what sort of impact do you think AI will have for financial wellbeing in the future?

AI will continue to improve the personalisation of financial wellbeing services, further integrating into existing propositions and delivering value to individuals.

We’re still in the relatively early stages of AI deployment, where improvements in the technology should lead to reduced costs. This will likely lead to improved access to a wider range of people.

Do you think AI will soon impact benefits in a more general sense too?

The scope of what is possible with AI is almost limitless. Systems used to rely on receiving data inputs in a specific format in order to be able to process data and produce outcomes. The development of large language models (LLMs) means data inputs can take many forms with the AI interpreting these in the way that a human might.

AI could, theoretically, help with any information processing for any employee benefit proposition – across both the delivery of the proposition to the individual and supporting the HR function and their advisers with understanding the needs of their employees to ensure the right benefits are being delivered.

Can you tell us a little bit more about Money Guided?  –

We believe that giving everyone access to the best possible financial outcomes is a basic human right that is eminently possible if technology is used effectively and appropriately.

Our mission is to help our members to develop a more positive relationship with their money.

Money Guided is the AI-powered, digital financial assistant in your pocket, powered by our proprietary technology, the latest AI, behavioural science, and decades of personal finance experience.

We use data to help the everyday person take control and make better financial decisions, turning crisis into confidence.

How can Money Guided help employers and employees with their financial wellbeing?

The world is spinning faster and faster. Technology has made it easier than ever to buy the things you want, whenever you want them. Instead of having to go to the shops, you can now buy anything you want from anywhere in the world. You don’t even need to have a debit or credit card to hand. It’s all saved in your phone and you just have to look at it to prove who you are and make a purchase.

But has this made your life easier, or has it just made it easier for companies to get you to give them your money?

Money Guided helps employees take control. It’s your finance hub to see everything in one place, set objectives and see your progress towards hitting your goals.

Whether you want to feel more financially secure, plan for retirement or find your first step on the property ladder, Money Guided’s digital financial assistant is always on, ready to help you make better financial decisions and make the most of your money.

Can you tell us a little more about Money Guided’s latest AI tool?

Money Guided’s digital financial assistant is here to answer your financial questions. Whether you want to talk to it through the Money Guided app, or via WhatsApp, it’s always on and it won’t judge you

It’s not here to sell you products. It won’t sell your data to advertisers. It just wants to help you better understand your finances and lead you towards better financial decisions.

It will also read your documents for you and store the information in the Money Guided app so you don’t have to wade through pages of financial jargon. Need to know if your travel insurance covers winter sports, or what the excess is on your home insurance? Our digital financial assistant can help you find the information you’re looking for.

To find out more about Money Guided, and our Marketplace offering, click here.