Financial Health for the Future of Work
The future of work presents an important opportunity to reimagine the financial services ecosystem, institutions, and products. Global leader of online payments PayPal have launched the report Financial Health for the Future of Work at the World Economic Forum in Davos. The research had expert contributors including our own Head of Insights, Shaun Dawson.
The workforce, the workplace and working practices are evolving; what effect will this have on retail financial services and how we access them in the future?
The future of work debate has sparked a conversation about the need to fundamentally rethink “social contracts” in markets around the world. It has also stimulated debate about important reforms in areas such as labor retraining, health care benefits, and pension markets. It stands to reason that just as these markets need to be shifted in light of changes in the labor market, so too does the retail financial services marketplace.
Retail financial services were designed largely for a world where individuals had a handful of fixed salaried jobs over the course of their lives. There is an increasing consensus that this will no longer be the case going forward. The traditional nine-to-five job is likely to be less common going forward, as well as the idea of a single job for life. This change should stimulate a sector-wide discussion about essential reforms and innovations that need to occur in financial services. This research paper is the first to explore the implications of the future of work on financial services.
Reforms to financial services ought to prioritize the goal of building financial health and resilience for individuals, families, businesses, and communities. There are 1.7 billion people in the world without access to formal financial services, but there are billions more for whom the traditional financial system simply does not work. Building up these individuals’ ability to pay and be paid, manage expenses, save for emergencies, access credit, and plan for their future is where financial services reforms ought to focus. Moreover, incorporating changes in the way in which people earn money into this calculus will only make for better financial intermediation and better outcomes for people going forward.
Click here to download and read the full report.