How fintech can support a holistic view of consumer needs
Some of my favorite moments are spent talking to fintech entrepreneurs looking for banking partners to help them realize their dream.
I recently met with the founder of a payments-related fintech, and he explained how his offering would help customers achieve financial well-being through payments and loyalty.
I explored the “why” of his business and the higher purpose of his work. He replied: “We aim to help each of our customers become more prosperous, you know: prosperous.”
Financial wealth is without a doubt a prerequisite for success in our capitalist society. But is there a way for fintechs to reach beyond consumers’ financial needs?
What if fintech played a greater role in promoting overall well-being—think sustainable food systems and intentional consumerism—rather than just working to improve financial gain?
I am confident that fintech can both help consumers succeed financially and provide a road map when it comes to making sustainable choices in a materialistic world. But first we in the financial industry must stop promoting services using a scarcity mindset.
Wellness involves asking “how much is enough?”
Traditional economic theory seeks to solve the problem of scarcity, which is when human wants for goods and services exceed the available supply. Modern capitalist societies, however richly endowed, dedicate themselves to the claim of scarcity.
So a key question about financial well-being for people is about getting more clarity on the question “how much is enough?”
When it comes to fintech solutions, entrepreneurs have the power, tools and means to create solutions that help individuals decide if they have “enough.” But perhaps more importantly, they have the power to create social wealth in addition to financial well-being. It’s not an uphill battle. It is about supporting already emerging conscious consumer values.
That doesn’t mean creating monetary wealth for consumers doesn’t matter; in fact, it is crucial, especially for low-income consumers and those outside the financial mainstream. But the goal of financial well-being can be supplemented with additional measures that deal with holistic well-being.
So how can fintech tap into this new paradigm that looks beyond simply satiating traditional materialism? Here are three ways fintech companies can get the ball rolling.
1. Create solutions that support intentional consumerism
Consumer attitudes are moving towards simplicity. As an article writer for the LA Times noted, “Our lifestyle choices have the power to create individual and collective changes in our mental health and well-being. Building generational wealth. And to make a difference in the world future generations will inherit. Living more consciously has allowed me to regain control of my finances and my sanity. I have also learned to live more sustainably, which benefits me and the environment.”
Today’s consumer is concerned with a wide range of social issues, from fairness at work to a warmer climate. Fintech should build solutions that allow buyers to track whether their purchases support these initiatives or not.
2. Focus on helping consumers live well
One area to explore is nutrition. “Climate” eating is a growing lifestyle trend focused on eating for the health of the planet, with choices based on environmental impact.
While climateism may be in its infancy, it will continue to grow in relevance as younger generations continue to prioritize sustainable solutions. This diet can include eating pasture-raised, buying more local and organic ingredients to reduce carbon emissions from transportation, and eating a plant-based diet with crops that are good for the soil.
Embedding fintech into enabling solutions in this sphere is an example of using technology to enable a more holistic approach to wellness.
3. Incorporate long-term projections
Countless dashboards show past consumption patterns and their effects. What’s needed are tools that can project the impact of future spending, so once consumers have set goals, they can see how future choices will affect progress toward their goals.
An opportunity for fintechs
The view of humans as mere consumers is not satisfactory because it addresses only one facet of the human condition—namely, the part that understands a narrow-minded, materialistic view of general well-being.
Fintechs have a responsibility – and an opportunity – to prioritize more than just financial goals. Instead, they should work to incorporate solutions that address holistic wellness and sustainability into their offerings.
In 2023 and beyond, the first priority of fintech should be to help people realize a broader vision of their real needs.
We, as members of the financial sector, can help lead this difficult process of cultural innovation to create a more ethical definition of commercial activity based on sustainable, low-impact patterns of use that will provide long-term viability.
I know we are up to the challenge.
