Financial Wellness Tools

Helping employers provide personalized, high-touch, and holistic financial wellness tools to their entire workforce.

Overview

New technologies are allowing individuals to improve financial health using employer-sponsored platforms or business-to-consumer smartphone apps

Financial wellness tools include a collection of platforms and applications designed to improve the financial health of the end-user. Financial health refers to the state of an individual’s financial position, defined largely by one's net worth, level of savings, financial preparedness, and debt. These tools can either be provided as an employee benefit to improve the financial wellbeing of staff or are available as apps to be downloaded and used directly by the consumer.

Services provided as an employee benefit range from personalized financial coaching/education, to personal budgeting and monitoring tools, along with platforms to manage debt and obtain financial support. Business-to-consumer (B2C) apps provide tools for individuals to create budgets, automate savings, track and manage expenses, identify and cancel unwanted subscriptions, and lower bills.

What's driving this industry?

Industry Updates

HoneyBee secures USD 105.7 million in equity and debt funding
Sep 7
Origin raises USD 56 million Series B at USD 400 million valuation
Aug 29
OneEleven raises an undisclosed amount
Aug 5
View all updates
Market Sizing

US financial wellness tools market could reach USD 2.0-2.6 billion by 2025

Conservative case

USD 2.0 Bn

Base case

USD 2.3 Bn

Expansion case

USD 2.6 Bn

USD million05001,0001,5002,0002,5003,000202020212022202320242025
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COVID-19 IMPACT

  • Nine out of 10 Americans have reported significant stress on their personal finances due to the Covid-19 pandemic.

  • UBS Financial wellness service saw employer demand for financial wellness grow 700% since March 2020.

  • BrightPlan has seen customer numbers and its customer pipeline triple since the start of the pandemic.

  • Enrich, LearnLux, FinFit, and FutureFuel.io provided free financial wellness resources to companies to assist employees in navigating financial difficulties during the Covid-19 pandemic.

Market Mapping

Companies offering platforms for employers to provide financial wellness as an employee benefit account for the majority of companies in the industry. Offerings range from financial coaching, tools to manage personal finances, financial support (such as low-cost emergency funds or earned wage access), to mechanisms to help employees manage their debt, particularly student loans.

As of August 2021, disruptors and watchlist companies identified across the employee benefits segments had attracted more than USD 1.4 billion in funding. Companies that provide business-to-consumer (B2C) applications for budgeting, saving money, and lowering expenses had raised in excess of USD 490 million as of the same date. Most startups in this space are in their early or growth stages and have been established over the last decade.

Incumbents that offer benefit platforms are largely financial services companies who also use these platforms to market their own financial or investment products to employees.

Incumbents
Growth
Early
Seed
Pre seed
Financial coaching and tools
?
Financial support
?
Debt management support
?
B2C applications
?
FutureFuel.io
FutureFuel.io
FutureFuel.io
FutureFuel.io
Prudential Financial
Morgan Stanley
UBS Group
Social Finance (SoFi)
Bank of America
Fidelity
Mercer
Limeade
Gusto
CloudPay
Salary Finance
PayActiv
Kashable
Wagestream
Even
FinFit
HoneyBee
Origin
BrightSide
BrightPlan
Northstar
LearnLux
SmartPath
FlexWage
BrightDime
Savology
Holberg Financial
Onward Financial
Edukate
Sqwire
Best Money Moves
SmartDollar
OfColor
OneEleven
Gusto
CloudPay
DailyPay
Salary Finance
PayActiv
Kashable
Wagestream
Even
FinFit
HoneyBee
Clair
Immediate
Instant Financial
Payflow
FlexWage
Onward Financial
Secure
Morgan Stanley
UBS Group
Limeade
FinFit
Tuition.io
BrightSide
FutureFuel.io
Peanut Butter
Goodly
OneEleven
Social Finance (SoFi)
Intuit (Mint)
KeyBank
Quicken
Albert
Truebill
Digit
Cleo
Qapital
Plum
Trim
Northstar
Olivia
Savology
Hiatus
ChangEd
The Beans
Quirk
OneEleven

The Disruptors

Most disruptors provide financial wellness platforms that focus on offering personalized financial coaching and education platforms to employers, who in turn offer them to its staff. Even the companies with a focus on other segments such as financial support or debt management usually come bundled with tailored educational content or access to professional coaches. Most disruptors across the industry hub are in their early or growth stages, with more than 70% of companies having been founded after 2015.

In terms of funding, DailyPay, Salary Finance, and Albert are among the largest disruptors in the employee benefits/B2B space which provide platforms for employers to provide financial support to their staff in the form of early access to earned wages. The greatest number of startups, however, were in the business of providing platforms for financial coaching for employees.

Albert, Truebill, and Digit are among the key players in the business-to-consumer (B2C) segment, which includes companies offering apps to consumers to formulate budgets, and manage their savings and spending. Albert is the highest funded disruptor in this space, having raised USD 173 million as of August 2021.

Key disruptors such as Salary Finance, Wagestream, and Cleo originate from the UK, but have a notable presence in the US market.

Financial coaching and tools

?

Disruptors

?
Funding in USD Millions
Salary Finance
289
PayActiv
134
Kashable
100
Wagestream
79
Origin
77
Even
52
FinFit
42
BrightSide
39
BrightPlan
11
Northstar
11
Watchlist
?
HoneyBee
LearnLux
SmartPath
FlexWage
BrightDime
Savology
Holberg Financial
Onward Financial
OneEleven
Edukate
Sqwire
OfColor
Best Money Moves
SmartDollar

Financial support

?

Disruptors

?
Funding in USD Millions
DailyPay
514
Salary Finance
289
PayActiv
134
Kashable
100
Wagestream
79
Even
52
FinFit
42
Clair
20
Immediate
16
Instant Financial
15
Watchlist
?
HoneyBee
Payflow
FlexWage
Secure
Onward Financial

Debt management support

?

Disruptors

?
Funding in USD Millions
FinFit
42
BrightSide
39
FutureFuel.io
26
Tuition.io
15
Watchlist
?
Peanut Butter
Goodly
OneEleven

B2C applications

?

Disruptors

?
Funding in USD Millions
Albert
176
Truebill
84
Digit
66
Cleo
57
Qapital
47
Plum
24
Trim
12
Northstar
11
Olivia
10
Watchlist
?
The Beans
Savology
Hiatus
OneEleven
ChangEd
Quirk

Salary Finance

Based in the UK, Salary Finance partners with employers to provide a platform for staff to access a range of financial wellbeing products such as early access to earned wages, low-cost borrowing backed by the user’s salaries, resources for customized financial education, and tools for employees to build and automate savings.

The company acquired Neyber, another UK-based financial wellness platform provider backed by Goldman Sachs in March 2020 for an undisclosed amount, helping Salary Finance expand its market share by absorbing Neyber’s customer base. As of December 2020, the platform was used by 500 employers across the UK and the US, available to more than four million employees. These include more than a fifth of the companies in the FTSE-100 index. Salary Finance partnered with the US financial technology company Chime in July 2021 to launch Save—a new product to incentivize US employees to set up salary-linked savings accounts that came with a USD 50 bonus and a variable Annual Percentage Yield (APY) of 0.50%. Eligible employees also receive access to SpotMe, an overdraft feature for early access to direct deposit funds, and a “save while you spend” feature to build their savings.

In December 2020, the company raised GBP 20 million (approximately USD 27 million) in Series D funding, jointly led by Experian and existing investor, Legal and Guardian. With this funding, the company’s total funding raised reached USD 138.8 million. The company expects to use the funding to accelerate product development.

In March 2021, Salary Finance secured a USD 150 million investment from Community Investment Management (CIM). The investment will be in the form of debt funding that will be disbursed to Salary Finance over a period of three years. The company will utilize this investment to fund low-cost loans for its users.

Segment:
Financial coaching and tools
Total funding:
USD 288.8 million
Competitors:
PayActiv, Wagestream, Even, FinFit
Disruptor Funding History

Financial coaching and tools:

Salary Finance
PayActiv
Kashable
Wagestream
Origin
Even
FinFit
BrightSide
BrightPlan
Northstar
HoneyBee
LearnLux
SmartPath
FlexWage
BrightDime
Savology
Holberg Financial
Onward Financial
OneEleven
Edukate
Sqwire
OfColor

Financial support:

DailyPay
Salary Finance
PayActiv
Kashable
Wagestream
Even
FinFit
Clair
Immediate
Instant Financial
HoneyBee
Payflow
FlexWage
Secure
Onward Financial

Debt management support:

The Incumbents

Financial services institutions usually bundle their own products with a financial wellness platform

Incumbents in this space mostly include financial services companies, who are developing their own platforms that provide employers with resources for financial education and other personalized solutions to improve the financial health of its staff. The incumbents also use these platforms to market their own core products such as debt and investment products to potential users. In addition, the incumbents also include companies that provide HR related tech such as payroll management, and employee wellness solutions who have developed solutions for employee financial wellness.

Most incumbents have entered this space using internally developed products, with the exception of Morgan Stanley, Intuit, and KeyBank, who acquired companies already operating in this space. UBS partners with student loan management platform provider FutureFuel.io to bolster its own offerings.

In-house development

Acquisition

Partnerships

Prudential Financial
check
Morgan Stanley
check
check
UBS Group
check
check
Social Finance (SoFi)
check
Bank of America
check
Fidelity
check
Mercer
check
Limeade
check
Gusto
check
Intuit (Mint)
check
KeyBank
check
check
Quicken
check
CloudPay
check
Prudential Financial

Prudential Financial is a financial services company that specializes in insurance, investment management, and retirement related products, as well as mutual funds. As of December 2020, the company operated in 20 countries, collectively employing approximately 51,000 employees as of November 2020. 

Prudential started analyzing financial stress among its own employees in 2008 at the beginning of the global financial crisis. Prudential began offering financial coaching, workshops from certified Prudential advisors, subsidized child care, and contributions to retirement plans. In February 2018, the company introduced a digital financial wellness platform that enabled employees to customize the offerings available to them. Prudential now offers this financial wellness suite to its institutional clients and in 2019 bolstered its offering to include a newer platform called LINK, that includes additional features that allow users to set their individual goals with timelines, and receive personalized guidance using artificial intelligence (AI) or a financial professional from Prudential.

In July 2020, Prudential released a collection of tools for employers, specifically designed to increase the financial wellness of staff during the pandemic. The package includes online tools and educational content that addresses the key challenges faced during the Covid-19 pandemic and provides insight on how to safeguard against financial disruptions. Prudential further expanded its product portfolio in February 2021 with the inclusion of digital caregiving services in partnership with Wellthy. Through this partnership, users of Prudential’s financial wellness tools will be able to access Wellthy’s digital caregiving tools such as educational content, digital care plan creation, caregiving document storage, appointment tracking, etc. along with other administrative and logistical support for employee caregivers, at no additional cost.

Notable Investors

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