How Fintechs Can Support Mental Wellbeing During Mental Health Awareness Month
October is Mental Health Awareness Month in South Africa, providing a vital opportunity to address the stigma surrounding mental wellness and consider the various triggers and stressors that contribute to mental health challenges among South Africans. Financial stress stands out as a leading cause of these concerns.
Research underscores the connection between financial strain and mental health, with multiple studies showing that financial stress is positively correlated with depression, particularly among vulnerable, low-income or low-wealth populations and that mental-health issues contribute to physical-health outcomes. A recent survey by Forbes Advisor revealed startling statistics: 54% of respondents often feel stressed by their debt, with 32% sometimes feeling similarly. This stress manifests in various negative outcomes, including sleep difficulties (48%), increased anxiety (40%), a diminished social life (38%), and depression (34%).
In South Africa, these trends are pronounced. Below-average economic growth, soaring unemployment, rising prices, and persistently high household debt levels leave the majority of South Africans grappling with financial stress, significantly impacting their mental wellness. An online survey from the South African Depression and Anxiety Group (SADAG) indicated that 46% of respondents cited financial stress as a major contributor to their mental health challenges.
The rise of financial technology (fintech) offers a promising solution to mitigate the interconnected issues of financial stress and mental health. Fintech encompasses a wide array of financial products and services—including banking, asset management, debt management, salary advancement technology, and money management tools—all designed to help individuals manage their finances better and reduce financial stress.
One transformational fintech service is Earned Wage Access (EWA), which allows employees to access their earned wages before their regular pay cycles—a crucial support in today’s economic environment marked by cost-of-living increases.
Denise Neethling, head of marketing for Paymenow, emphasises, “Earned Wage Access is transforming the financial landscape for many South Africans. By providing access to earned wages before the end of the month, we are empowering employees to better manage their finances, avoid high-interest debt, and build a culture of saving. This aligns perfectly with the goals of Mental Wellness Month, as it gives South Africans a practical tool to take charge of their financial future and build a healthier, happier relationship with money.”
Beyond EWA, fintech innovations such as open banking and mobile apps significantly enhance financial wellbeing. Many banks now offer features that enable customers to identify potential scams before transactions are finalized. Financial aggregator apps provide users with a comprehensive snapshot of their financial health, simplifying money management.
Fintech also democratises access to financial advice and education, breaking down barriers previously kept in place by high advisory costs. With the advent of online financial education platforms and aggregator services, individuals can now access essential resources, including podcasts and financial modelling calculators, which empower them to take control of their finances.
Looking ahead, the potential for fintech to support mental health continues to expand. By utilising artificial intelligence and data analytics, fintech companies can deliver personalised financial solutions. These applications can analyse spending patterns, offer tailored recommendations, and even predict future financial scenarios based on current behaviours, which fosters financial mindfulness and informed decision-making.
However, as we embrace the benefits of fintech for mental wellbeing, it’s essential to also recognise the challenges it may pose. Ensuring that these solutions are inclusive and accessible to individuals regardless of socioeconomic status or financial literacy is crucial. Furthermore, safeguarding data privacy and security is paramount, as fintech solutions depend on sensitive personal financial information.
“Despite these challenges,” Neethling concludes, “the opportunities fintech presents for improving mental wellbeing are vast. By providing real-time support and interventions, fintech can potentially identify and address financial stressors before they escalate into significant mental health issues. Additionally, these solutions can foster a sense of community, connecting users with others facing similar challenges and enabling a shared journey toward financial and mental wellness.”