How fintech is changing the workplace

Fintech can positively impact the workplace by improving human engagement with technology.

Over the last decade, there has been rapid growth in financial portals, pension provider apps, savings nudges, benefits platforms and robo-advice tools, all designed to improve employee financial wellbeing at scale.

In theory, technology should simplify financial decision-making, making it easier, cheaper, and more accessible. Despite many tools, employers report low employee engagement and difficulty demonstrating sustained behavioural change.

This raises an important question for reward and HR professionals. If fintech capability is improving, why are outcomes not improving at the same pace?

The reality of workplace fintech

Workplace fintech solutions aim to improve access to information, simplify decisions, and encourage better financial habits. When used well, they remove friction and empower employees to make confident choices. However, many rely on employees being self-motivated, confident, and ready to act, which research suggests is flawed.

Department for Work and Pensions’ 2024 research shows that providing information alone seldom prompts action, especially when decisions seem complex or emotionally charged.

For many employees, pensions and long-term financial planning seem distant, confusing, or intimidating. Without personal context, even well-designed digital tools can appear to be just another platform vying for attention.

Whatever happened to robo-advice?

Robo-advice was once seen as the solution, offering scalability, consistency and lower costs. However, many models have struggled to gain workplace traction, with some failing to sustain engagement or profitability.

Financial decisions aren't purely rational. Financial Conduct Authority 2018 research shows confidence, trust and emotion influence decisions. When employees lack clarity or confidence, they are unlikely to complete a fully digital advice journey, regardless of how efficient the technology is.

Many tools focus on product selection before employees understand their situation, and without clear benefits or the “what’s in it for me?” factor, engagement drops.

The missing ingredient: Human motivation

One consistent lesson from workplace financial wellbeing initiatives is that technology alone does not drive behaviour change - people do.

Effective programmes know employees need help understanding and emotionally connecting with information. This doesn't mean costly one-to-one advice for everyone, but it does require structured human interaction at key points.

Group workshops, facilitated sessions, or guided experiences foster clarity that digital tools alone can't provide. When employees know their current position, their goals, and the gap between them, motivation grows. Then, technology becomes an enabler, not a barrier.

This aligns with evidence that timely human support increases the likelihood that individuals act on financial decisions, particularly regarding pensions and long-term savings, according to a Money and Pensions Service 2020 report.

Technology works best after understanding, not before

A common mistake in workplace financial wellbeing strategies is prioritising technology over insight. Platforms are often introduced with good intentions but fail to first help employees understand their financial situation or the importance of taking action now.

Guiding employees from awareness to motivation enhances engagement with fintech tools, making tasks like completing a financial plan or using modelling tools feel purposeful rather than overwhelming.

Tools that emphasise clarity and planning resonate more than those that push early product decisions. Employees prefer confidence and direction over choice overload.

What should employers do differently?

For employers reviewing their financial wellbeing approach, the answer is not to abandon fintech, but to deploy it more thoughtfully.

This means:

Recognising that financial decisions are psychological before they are technical
Using people to create motivation, confidence and momentum
Ensuring employees understand the personal benefit before asking them to engage digitally
Focusing on behavioural outcomes, not just platform engagement

The financial services and technology sectors have skilled professionals creating sophisticated solutions. However, many initiatives fail to understand human behaviour and communication, which are crucial to fintech's genuine improvement of financial wellbeing.

When used correctly, with human engagement fostering understanding and technology enabling action, fintech can effectively impact the workplace. For employers, the challenge isn't acquiring more tools but improving how people use the ones they already have.