To the surprise of no one paying attention, the forecast looks bright for the financial wellness market in the coming few years.
According to the “Financial Wellness Benefits Market in US – Industry Outlook and Forecast 2019-2024” from ResearchAndMarkets.com, the U.S. financial wellness market is expected to cross $825 million by 2024, growing at a CAGR close to 13% during the forecast period.
The market research report says the U.S. financial wellness benefits market is being driven by the surge in the number of vendors introducing the latest financial wellness awareness programs, and the boom of one-on-one and digital assistance will fuel the growth of the market.
The report provides an in-depth market and segmental analysis of the market, which it says is evolving with a new generation of employees (Millennials) starting to dominate workplaces.
Market Dynamics
The report shows how the U.S. financial wellness benefits market is becoming increasingly data-driven. Organizations are investing in technology and expanding HR capabilities to measure financial initiatives.
The vendors in the market are reviewing the employee’s information and productivity data to get insights about their finance management. Wearables, onsite program delivery, software platforms, employee feedback, online screening and surveys, and other data sources are being used to garner insights into the programs and help employees to understand more about financial wellness.
Several new and established players such as Hellowallet, LearnVest, SmartDollar along with non-profit providers such as Enrich and GreenPath Financial Wellness are introducing new models into the market. Also, Google offers several resources along with access to financial planning services and financial advisors.
Market Segmentation
Financial planning, financial education and counseling, retirement planning, debt management, and others are the major segments of the market.
The financial planning segment has dominated the market and is expected to grow at a CAGR of around 12% during the forecast period. It includes assistance and advice on budgeting, devising investment strategies, and long-term planning of finances.
A larger part of the workforce is looking at their long-term financial future as opposed to focusing on short-term stressors and seeking for the tools such as budgeting applications and action plans for a better financial outcome.
Companies are onboarding financial planning advisors and asset managers, which is boosting the growth of the segment.
Vendors are launching several financial plans and offers. For instance, Korving & Co. offers a CFP-provided series of programs that are designed to educate participants about investing, debt, and retirement income planning.
Large, medium-sized, and small-sized business are all major end-users of the financial wellness benefits market.
Large companies have invested more in the financial wellness program, and the segment is expected to grow at a CAGR of around 13% during the forecast period.
Recently, large companies have started offering voluntary financial benefits to employees, occasionally with cash incentives in order to aid the employee’s money management. The offerings are designed based on Fortune 1000 companies and comprise online tools, personalized financial counseling, and a routine check on personal financial metrics.
The market by delivery is divided into one-on-one, online/digital, and group.
One-on-one assistance is gaining popularity and is growing at a CAGR of around 13%. Employees are seeking one-on-one interaction as it provides clarity about financial terms. Advisors are catching up with employees at regular intervals via phone or personal meetings, which includes web-based platforms or classroom sessions.
Key Vendor Analysis
The U.S. financial wellness benefits market is characterized by several startup and employee benefits providers.
The report says the majority of new ones do not necessarily have a sufficient track record, but they are the ones fueling innovation and reimagining the financial services space. Several vendors have introduced platforms to interact with consumers. The future of financial benefits is expected to be governed by targeted communication, integrated, multichannel approach, accessibility to reliable resources, and personalized learning paths for exponential engagement.
Leading Vendors in Market
According to the report, the leading vendors in the U.S. financial wellness benefits market are:
- Prudential Financial
- Bank of America
- Fidelity
- Mercer
- Financial Finesse
For more information about the report visit https://www.researchandmarkets.com/r/joplqb
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
