3 May 2023
The convergence of financial and physical wellness, a new paradigm
Financial Services industry to be a financial and physical wellness ecosystem provider
Financial services as an industry is central to the healthcare and personal fulfilment ecosystem. Playing in the health and wellness space can result in a customer who is more health-oriented and financially resilient. The future of wellness is about providing a combination of health and financial services that create value for individuals every moment of their lives. We believe the newcomers working in the finance and health intersection could develop novel products/ecosystems that provide total wellness to customers.
Connection between financial wellness and personal health becoming apparent
A lack of exercise, poor diet, and other factors lead to a productivity loss of 30 days for every employee per year. The connection between financial wellness and personal health is becoming apparent– in a global survey, 81% of respondents found other goals easier to achieve when finances were in order, while 70% stated that good financial health had a positive impact on their physical health.
Big Tech expanding their ecosystems
The global technology giants (“Big Tech”) are expanding their ecosystems and providing financial and healthcare services. These companies accounted for almost $900 billion in revenues in 2019, greater than the GDP of six of the G20 nations. 60%+ customers say they already use financial products such as payments, cards, or bank accounts from Big Tech/ challenger banks or are likely to do so in the next three years. 75% of tech-savvy customers are currently using at least one financial product provided by one of the Big Tech.
In this paper, we set up an initial framework to assess the opportunity along with implications to the financial services industry. We begin with the key enablers and some of the initial leaders innovating in this space. We also share some best practices and success factors that we have seen in different parts of the world. Whilst our insights are limited because it is still early in this convergence, we hope that some of the takeaways will benefit how you look at wellness either as a financial services player, participant in adjacent industries, or even as an interested individual.
Total wellness ecosystem
As the public is now paying more attention to maintaining a healthy life, and physical wellness and financial wellness are closely related, we think financial institutions should look into the ways and examples of how both incumbents and emerging players are innovating in building a total wellness ecosystem. Financial institutions should take this opportunity to accelerate the digitisation initiatives, and more importantly, consider how they build a wellness ecosystem that can integrate their existing offering with new comprehensive wellness solutions for customers.