Mental health includes our emotional, psychological, and social well-being. It affects how we think, feel, and act. It also helps determine how we handle stress and make healthy choices. It is a lifelong and complex concern, which has recently been receiving the recognition that it deserves, despite of the Covid-19 pandemic. And Fintech has a lot to contribute in that way.
Fintech to help reduce financial stress
One of the many possible factors that may trigger an unhealthy mental state of mind is the uncertainty of managing one’s finances. With mind.org claiming that 77% of British residents reported being stressed about money, financial wellness is a serious issue that may lead to depression, anxiety and a lack of financial freedom. Also, a Money and Mental Health survey shows that mental health problems make it harder to earn, manage money and spending, and to ask for help.
In this respect, one of the roles of Fintech in finance is to help ease the everyday stresses of dealing with finances so that you can concentrate on other areas of life. From accuracy to convenience, here are 6 ways that Fintech can help reduce your financial stress and anxiety:
1. Compare and find the best option
New digital applications, websites and research will allow you to compare prices and offers, enabling you to have more choice in your purchases. Being able to compare and analyse at the click of a button means that now more than ever, you can analyse the market to find what is the most efficient deal for you. From shopping to remittances and travel, this can help you spend wisely. This saves you from making poor decisions and allows you to become more knowledgeable about the market and more empowered in your decisions.
2. Get things done quicker
Another benefit of using Fintech in your finances is that your calculations, forecasts, averages and more can all be done instantaneously. This saves you precious time and administrative efforts to let you focus on what matters to you most. This is the case (for example) of personal financial management apps which allow users to have instant access to their personal finances, account balances, financial transactions, spending habits, budgets, and savings. These apps help users stay on top of their money and make smarter and more informed financial decisions.
Strands’ Personal Financial Management solution, driven by Artificial Intelligence, means smarter money management for the customer, improved bank-user engagement and a greater share of wallet for the bank. Using this solution means less frustrating waiting times allows the customer to have a clearer financial picture.
3. No more stressing over mistakes
We understand that maths isn’t for everyone. And worrying about complex addition, subtraction, invoices and more can take its toll, as well as those with poor memory who struggle to record their expenditure can lead to heightened anxiety. Therefore with digital banking tools, customers can leave those concerns to Artificial Intelligence, which allows them to relax without the stresses of getting their numbers wrong.
4. Clear communication and engagement
As mentioned above, mental health has multiple factors. For some, physically getting to banks, living with a global pandemic or just discussions on sensitive and complex financial topics may be contributing factors to a mental struggle. This is where Fintech, in the form of digital banking, comes in 24/7 service and walk through guides at your fingertips gives you full convenience and control.
When Fintech companies build better tools, customers can manage their own financial affairs. They can set limits on their spending, manage their household budget and send critical payments to loved ones while sitting in the comfort and privacy of their own home. Such digital finance allows for independence and autonomy, which are important components of good mental health. Also, with personalized banking, thanks to (for example) the use of ArtificiaI Intelligence and Machine Learning from Fintechs such Strands.
5. No discrimination
With digital banking, customers do not need to worry about forms of discrimination or prejudice. With personalized insights, age, gender and race are all treated and attended to adequately. Due to the availability and convenience of Fintech applications, no user should feel that they are physically or mentally unable to seek help and gain a better control and understanding of their finances.
6. Detect problematic behaviours
Some money management Fintechs make it easier to keep track of spending and financial obligations, giving time and space to reconsider decisions. This allows people to protect themselves from problematic behaviours during periods of poor mental health by putting blocks on certain account features. This also may use behaviour online to identify people who might need further support, and check understanding through credit applications processes. Spotting the problem early might allow FinTechs to predict behaviour which might identify a person as experiencing poor mental health, so that they can be offered tailored support in a timely way. Such data analysis is widely used for fraud prevention, and in some cases being offered to support personal financial management.
The emergence of Fintechs has meant an improvement for the client in terms of overcoming financial cognitive, psychological and psychical barriers to allow improved financial capabilities. As a result, less stress, worry and disengagement can reduce the amount of psychological harm.
If you are interested in finding out how Strands can help your bank, or if you would like to get a Free Demo of our Personal Financial Management solution (PFM), please fill out this form and one of our Sales Reps will get back to you as soon as possible