The financial industry has long been more focused on gathering assets than on solving real financial problems. Many financial wellness programs reflect this bias:

• AUM-driven solutions: Many programs are designed to attract assets under management (AUM) rather than address day-to-day financial challenges. Employees looking for help with budgeting, debt repayment, or emergency savings often find themselves steered toward investment products instead.
• Payday loan disguises: Some “financial wellness” programs offer early wage access or payday advances. These services may provide short-term relief but can trap employees in a cycle of dependency—much like traditional payday loans.
• Generic, one-size-fits-all advice: Many financial wellness solutions provide generic content and automated recommendations. Employees don’t get the personalized, human guidance they need to navigate complex financial situations.

Why employees aren’t engaging

Employees don’t use these programs because they don’t trust them—or find them irrelevant. Here are some key reasons why engagement remains low:

• Lack of personalization: Most programs provide broad financial education, but employees need customized advice tailored to their income, benefits, family situation, and long-term goals.
• Distrust of financial institutions: Employees are wary of financial programs tied to large banks or investment firms because they assume—often correctly—that there’s an ulterior motive.
• Complicated interfaces & poor experience: Many financial wellness platforms are clunky, outdated, or difficult to use. If employees can’t easily find what they need, they won’t use the service.
• Lack of actionable support: Employees often need help making financial decisions in real-time, not just educational materials or automated assessments.

The solution: A fiduciary, employee-first approach

To truly improve financial wellness, employers need to rethink how these programs are structured. Here’s what an effective financial wellness solution looks like:

• Fiduciary-only advice: Employees should receive guidance from CFPs (Certified Financial Planners) who act as fiduciaries, meaning they are legally required to act in the employee’s best interest—without selling products or gathering assets.
• AI + human guidance: Combining AI-powered financial education with real, human CFPs can provide employees with both instant answers and deeper, personalized advice when needed.
• Focus on everyday challenges: Instead of pushing investment products, financial wellness programs should help employees manage debt, build emergency savings, optimize employer benefits, and plan for major life goals.
• Seamless, engaging technology: Employees need an easy-to-use platform with interactive tools, voice and avatar engagement, and proactive nudges to keep them on track.

The future of financial wellness

The financial wellness industry has an opportunity to shift from a sales-driven model to a true employee-benefit model—one that prioritizes real financial well-being over profits. Employers who adopt fiduciary, technology-enhanced solutions will not only see higher engagement but also more financially stable, less stressed employees. By expanding the definition of financial wellness to include fiduciary assistance with benefits selection and addressing everyday financial challenges faced by the majority of employees, companies can provide comprehensive support that truly meets their workforce's needs.