How fintech can play an important role in improving mental health.

By Frances Fricker, Fintech Solutions, Railsbank.

Here’s the thing. Discussions around mental health, once an uncomfortable topic, have now been thrown under a magnifying glass and for a very good reason. Safe to say that most people have questioned their mental health at some point over the last year, I know I have.

And these worries manifest themselves in many ways. Metro‘s Mentally Yours podcast and Toluna surveyed 1,000 people and reported an alarming 77% of British residents said they have felt stressed about money. Furthermore, the impact of the nation’s deteriorating mental health, from Covid-19 lockdowns and other restrictions, has cost UK businesses a staggering £14bn this last year.

Thankfully we hear less of “man up” and more of “please talk to me” when we feel brave enough to speak up, but what solutions are out there to genuinely improve some of the root causes of our decline. And what role can we take to make that difference?

At Embedded Finance platform Railsbank I’m lucky enough to be a part of some of these amazing solutions which tackle some of these issues head on. Below are my top three favourites:

1. Employee Rewards and Benefits — Employers who take our well-being seriously are fundamental to our health, even more so now that our working lives continue to be disconnected. We place a great deal of trust in our employers to get paid on time, to be recognised for our contributions and to ensure a healthy work life balance.
   Thankfully we are starting to see more tech disruption in the benefit space, with employees being issued with bank cards and virtual accounts that can be used for discounts and cashback schemes. Employers also have the option to immediately send bonus payments to their staff without having to wait for payday; employees have the option to transfer a % of their earnings to various schemes. Then there are rewards linked to health and fitness, mindfulness and carbon offsetting;
2. Wealth Management — Financial resilience cannot improve if we do not create a financial buffer and start to ‘pay ourselves first’. What I mean by that is, to pay into our future by investing and saving. At the ripe young age of 39 I’m becoming increasingly concerned about my financial security after retirement, and beyond, and I’m not alone.
   One of the beauties of financial technology is that it simplifies the management of money. It provides a frictionless, secure way to save and invest. Spend and save bank cards which automatically invest the same amount as your purchase, or round-up directly into your retirement pot, are a huge step forward. It places your future at the forefront of every purchase you make. When you’re feeling a little more flush, there is the ability to pay yourself immediately, without having to wait for a direct debit to be collected and there’s the chance to have instant access to your savings when you need it the most;
3. Earned Wage Access and Invoice Financing — Long gone are the days of having to wait to get paid. We’re seeing a number of employers, payroll companies and firms that provide the ability to track and access wages and invoices. This is enabling individuals and companies to avoid unnecessary expensive debt, by being able access your hard-earned money and expenses whenever you need them, directly into your bank account; I think we can all relate to the possible peace of mind this can offer.

So there you go. The management of your money can be a great source of stress during these difficult times. But, there is a lot you can do, especially with the innovations being introduced by fintech companies, supported by the wider financial services sector. Fintech is focussed on the empowerment of the financial consumer and that can only be a great thing.