3 minute read 25 Mar 2019
Woman with headphones on in the subway

How will your personal data affect your future health and financial well-being?

Authors

Mike Lee

EY Global Wealth & Asset Management Leader

Spirited leader for wealth and asset management. Champion for change. Driven to produce better outcomes and simplify the complex. Passionate about family, friends and sports.

Mark Wightman

EY Asia-Pacific Wealth & Asset Management Advisory Leader

Leveraging technology and cultural change to drive the future of wealth and asset management. Global traveller with an Asia Pacific focus. Thought leader. Educator. Father.

3 minute read 25 Mar 2019

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Explore how firms can leverage data to deepen the connection between wealth and health — or wellness as a service.

We invite you to imagine a future in which firms anticipate individuals’ wellness needs, provide hyper-personalized services and nudge them to make smarter choices.

The future of wellness is about providing a combination of health and financial services that create value for individuals in every moment. This connected approach would create an opportunity for every individual to identify and meet their aspirations for education, work, leisure, family, retirement and health. Just as importantly, it would do so in a way that takes account of their ever-changing circumstances and personal preferences.

Fast forward 10 years and imagine Minna, a ridesharing driver whose phone, car and wearable devices continually gather and share her personal data with various service providers. In return, Minna receives tailored, real-time services and advice.

As she shops, Minna is notified of how her potential purchase would impact her immediate finances and her long-term goals, such as her daughter’s education savings plan and her ambitions for home ownership. And when she considers grabbing pizza on her way home from work, Minna’s AI suggests a healthier alternative of fish and vegetables — showing the differences in calories, nutrition and costs of each meal.

Minna can juggle her job as a driver, her role as a mother, her health and her savings with the help of providers nudging her to make smarter decisions that align with her goals.

Your health is your wealth

To deliver wellness as a service, close collaboration will be needed from the technology, financial services and health care industries — especially given the fundamental connection between physical, mental, emotional and financial health.

According to Pamela Spence, EY Global Health Sciences and Wellness Leader, health care firms will use patient-specific data from wearables and mobile phones to build real-time pictures of a patient’s health status, recommending targeted interventions before symptoms of disease manifest. 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.

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.
Mike Lee
EY Global Wealth & Asset Management Leader

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.
Mark I. Wightman
EY Asia-Pacific Wealth & Asset Management Advisory Leader

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.  

About this article

Authors

Mike Lee

EY Global Wealth & Asset Management Leader

Spirited leader for wealth and asset management. Champion for change. Driven to produce better outcomes and simplify the complex. Passionate about family, friends and sports.

Mark Wightman

EY Asia-Pacific Wealth & Asset Management Advisory Leader

Leveraging technology and cultural change to drive the future of wealth and asset management. Global traveller with an Asia Pacific focus. Thought leader. Educator. Father.