Originally published on distilledpost.com on June 03, 2021
The global wealth gap has widened; perhaps, even beyond repair.
The COVID-19 crisis has magnified latent issues concerning financial insecurity on an organisational and individual level. Due to the pandemic, businesses required their employees to work under unprecedented strain: under unconventional conditions, reduced work hours and sacrifice their salaries. As a result, multiple studies now show that many employees continue to experience ‘a complicated array of negative emotions, work stress that may impair their work effort and resources’, as well as further financial insecurity.
Even as we exit the peak of the COVID-19 pandemic, it is still unsure when or how unemployment rates will abate. Thus, as the world market enters into a period of uncertainty and new economic vicissitudes, organisations must draw particular attention to the financial well-being of their employees.
In light of such, executives must take further action to protect their employees and companies. As Chieu Cao, CEO of Mintago, states: it is high time employers work harder to protect their workforce against drastic functional and financial outcomes for their organisations.
‘The pandemic quickly became more than just a medical disaster. As a result of COVID-19, we entered a truly historic economic and financial catastrophe. People all over the world lost their jobs, became unemployed and rushed to find jobs. Because of the pandemic, it has become more commonplace for individuals to more deeply consider their financial health and well being.’
Fortunately, the emergence of next-generation platforms like Mintago allows for organisations to provide financial security and education for their employees. Furthermore, by connecting their workforce to digital tools like Mintago, employees can engage with financial wellness resources that will profoundly impact their future. Regarding Mintago’s impact on the workforce, Chieu and the team are proud to support organisations in opening ‘conversations’ regarding financial health:
‘At Mintago, we have accelerated further conversations and considerations for employees. The platform encourages both employees and employers to talk about financial health, how they can save money and what they need to do to secure their financial futures’
COVID-19: The Conversation Catalyst for Financial and Personal Health
The economic aftershock of COVID-19 has been felt across multiple demographics and industries.
We have been told by global leaders, politicians and think tanks that, in no uncertain terms, irreparable scars will remain long after the pandemic has ended. Carmen Reinhart, the World Bank’s Chief Economist, has warned against a ‘decade of global growth disappointments’ to come:
‘Unless corrective action is taken, we can expect a decade of global growth disappointments. Global output was on course to be 5% lower by 2025 than its pre-pandemic trends […] Getting back to a pre-COVID standard will take time. The aftermath of COVID isn’t going to reverse for a lot of countries. Far from it’
Much closer to home, Imperial College’s Nick Bosanquet has similarly cautioned people in the United Kingdom to brace themselves for ‘the groaning twenties, not the roaring twenties’. Under this context, many wonder what will become of their businesses, jobs and incomes; even in light of lockdown easing come the summer of this year.
The world economic downturn has also levied a severe and multi-dimensional effect on the individual. For many, financial and personal health remain tenuous. Decreases in savings and retirement funds, ranging from between 30%-80%, added to the stress felt by many across the world. According to a McKinsey study, more than ‘half of consumers’ who have ‘job security concerns also have less than four months of savings’:
‘Job security concerns remained roughly constant from May to June, although they varied widely by country. In Germany, 9 per cent of household financial decision-makers expressed concerns over job security, while in India, Chile, and South Africa that fraction was over 50 per cent. Furthermore, in most countries, more than half of people with job security concerns held savings to cover less than four months’ worth of expenses’
Mintago: The Simple Solution for Financial Well-Being
Since the outbreak of COVID-19, financial security has been the most significant concern for employees worldwide. The substantial loss in household income, pensions savings and general growth across multiple businesses are set to pose further disruptions to individual financial health.
As a result of the current economic climate, many have been forced to re-evaluate how they can protect their future and financial well-being. A survey conducted by EY suggests that above 55% of respondents indicated that they were actively looking to increase momentum in securing their financial futures. Among the survey participants, a further 25% agreed that the pandemic has drastically changed their opinions regarding how they secure financial well-being; and the critical role digital platforms may play in achieving this:
‘We need to consider how digital tools and experiences can help prompt good financial decision making and provide answers to questions about specific goals […] As the economic effects of the pandemic linger, more people will be re-evaluating their own ‘new normal’ and taking action accordingly’
Chieu and the Mintago team recognised a noticeable gap in how employees are supported in managing their finances. Specifically, Chieu observed that many would inevitably require additional resources to mitigate imposed securities on their financial and personal well-being in a post-pandemic setting. Given the increased uptake of platforms like Mintago during and after the worst of COVID-19, Mintago’s value-add for organisations has been made abundantly clear:
‘There’s a lot of unnecessary complexity around managing pensions for employees. At Mintago, we want to simplify that. The platform streamlines the world of pensions for employees and motivates employers to support their workforce throughout the entire process’
In addition, Chieu saw that many employees needed a personalised, intuitive and customisable way to manage their current financial situation.
‘The pandemic demonstrated to us the importance of tailoring our platform to meet the exact needs of each user. Every time an employee moves from one role to the next, the process of transferring pensions can be burdensome, at best. So, we’ve created a solution that develops each individual’s financial well-being in time with their career trajectory’
The Future of Finance is: Digital Empowerment for the End-User
The rise of digital finance platforms like Mintago ensure that employees receive the support they need.
As a hybrid, next-frontier technology, the Mintago platform helps users to build knowledge and the means to secure their future financial successes. In doing so, Chieu and the Mintago team provide each of their clients the opportunity to expand their pensions beyond a singular financial asset. Through Mintago, employees can enjoy the promise of ‘long-term’ security, and the knowledge to support it.
‘By building a hybrid technology, we’re creating a much better experience for both the employer and the employee. What’s exciting about what we’re building here at Mintago is the fact that we’re providing a seamless financial experience and digital toolset for people to use in the long term. Through our platform, we want to champion each and every person’s long-term financial health.’
This interview is outside the Mintago Blog