Policymakers could reduce the cost of insurance for those who are proactive about their health, in turn leaving individuals with more expendable income and helping them strengthen their financial well-being.
Surprise, surprise: it’s all about the data
Supported by a rich array of data and analytics, hyper-personalized interactions that involve nudging, visualization and incentive tactics such as gamification would help investors maximize their lifetime financial well-being in every micro-moment.
Minna shows how this might work. When her car breaks down, she’s automatically offered a microloan to get it fixed. The damage turns out to be less than expected, putting Minna back on the road quickly and allowing her to repay the loan within days. She swiftly reinvests her funds, providing an immediate boost to her financial wellness indicators. These and other micro-decisions about saving and spending give her more control of her busy life, while keeping an eye on her long-term goals.
Enabling individuals to make easy, meaningful and intuitive micro-decisions depends on applying the power of AI to complex data pools. In addition to financial information, these data pools will include personal information about health, daily habits, beliefs, location, etc., with much of the information captured via wearable or mobile devices.
As data about individuals and things becomes increasingly connected, the power of analytics and predictive power will grow. This will help individuals visualize outcomes of everyday decisions in real time, keeping them in control of their well-being in the short and long term.
As more data is collected and connected, behavioral insights will become richer. That will allow micro-moments to become more predictive, helping investors to visualize outcomes.
Of course, the need to access and analyze a mix of structured and unstructured data poses significant challenges. Analysis is often frustrated by internal silos, corporate divisions and industry segmentation. It won’t be easy to overcome these barriers while meeting high standards for data security and privacy. But things will improve as investors become more comfortable sharing their data, either due to their growing familiarity and trust, or because they experience tangible benefits.
A platform ecosystem
Investors have very different preferences around the sharing of their personal data, experiences and choices. This is exemplified by the growing polarization of investment – or the divide emerging between tailored offerings that help individuals make their own advised decisions, and more commoditized offerings of curated choices.
We are seeing the polarization of investment. There’s a divide emerging between tailored offerings that help individuals make their own advised decisions, and more commoditized offerings of curated choices.
In time, this could lead to wellness services being delivered through platforms that coordinate an ecosystem of businesses around the consumer. The ability to connect individuals with asset managers, banks, insurers and healthcare providers could allow platform models to take the lead in shaping well-being. This would force today’s financial services firms to decide whether they want to be the provider of the service or part of the ecosystem that is called upon to create curated solutions for individuals. In other words, will your firm be the aggregator, or be aggregated?
Regardless, we believe that partnering to deliver value in every micro-moment is key to helping individuals achieve lifelong financial contentment and overall wellness. With collaboration from various industries, it could be possible to make financial well-being a reality for everyone, every day.
At Innovation Realized 19, from 7-9 April in Boston, EY convenes leaders to further explore how companies can continue to create and deliver value by planning in three dimensions simultaneously: Solve the now. Explore the next. Imagine the beyond. Join the conversation by following #InnovationRealized.
Summary
Delivering value in every micro-moment is key to helping individuals achieve lifelong financial contentment and overall wellness.
