Members using their benefits is good for everyone. Members use their hard-earned funds for their health, employers have happy and healthy teams, and benefit providers increase their revenue and NPS…so why isn’t everyone using their benefits? For starters, two in ten members aren’t even sure what their benefits are.
Investing and banking are boring, hard to understand, and have traditionally been gated by brokers and bankers. Raise your hand if that sounds familiar. (I see your hand.)
Here’s where it gets different: fintech leaders have found ways to introduce new consumers to banking and investing. In its 2021 annual report, Plaid found that nearly nine in 10 (88%) Americans now use a fintech app to manage their financial lives. That’s higher than video streaming services (78%) and social media (72%).
Fintech innovators have done this by eliminating barriers that block access. For example, Vestwell provides their partner financial institutions with the benefits of a modern-day recordkeeper. Because they don’t have to build or manage a recordkeeper, more financial institutions can offer 401(k) programs to employers, and more employees have access to retirement savings. Barrier eliminated.
If fintech leaders can do it, benefit providers should be able to do it, too—right? Let’s look at how fintech successfully gained new users and see how those lessons can apply to benefit utilization.
