By Peter Briffett, CEO & Co-Founder, Wagestream
The traditional financial system is stacked against 80% of the working world. Driven by profit and profit alone, for centuries, banks have been taking more than they give. Finally, the tide is starting to turn. The most exciting trend in banking today isn’t being led by banks – it’s being led by employers.
Employers, who have the relationships, data and trust that banks can only dream of, have started to offer their people financial products and services that were once the exclusive domain of high street giants. And here’s the twist: they’re doing it better.
Banks have never put their customers first, and those on lower incomes are usually the hardest hit by their profit-hungry tactics. Punitive overdraft charges, bounced direct debit fees, early repayment charges and extortionate credit card interest – the list goes on. They don’t just fail to support low-income workers by neglecting to recognise the multiple intersecting challenges they face – they make life more difficult for them.
Forward-thinking employers, in contrast, are flipping the model. Recognising their pivotal role as the most positive financial relationship in their people’s lives, they are stepping in to fill the void left by banks.
Reimagining financial benefits
Employers are best placed to understand their teams’ schedules and stressors, and they can capitalise on this unique position, by offering genuinely helpful financial tools, tailored to the lives and needs of their people. Using the knowledge and data at their fingertips, combined with the expertise of a third-party, employers can introduce fairer, more personalised tools than traditional finance could ever offer.
In practice, this new approach sees employers offering financial benefits that their people actually use – like auto-enrolment savings initiatives that help people save for the first time, and budgeting tools that sync with data on shifts and spending to give full financial oversight. Like affordable loans repaid directly from salary so a repayment is never missed, personalised discounts and deals, and simplified pension pots. And here’s the key difference: these aren’t products being sold for profit; they are employee benefits designed to improve financial wellbeing.
The business case for financial wellbeing
When employers offer these tools as a benefit, the impact is tangible. Employees have total visibility over their financial lives, borrow less, feel better and save more. Through the Wagestream financial platform alone, UK employers have helped their people to save £38 million [Wagestream usage data] – with thousands building a buffer for the very first time. When offered financial wellbeing support at work, 86% of employees feel less stressed and 78% feel more positive about their employer [Wagestream survey data]. When they can choose their own pay cycle, employees pick up 11% more shifts [Wagestream survey data], and nine in ten feel more in control of their finances. When offered an easy way to save, 27% would stay with their employer for longer. Nearly half would move employers for tools that improve their short, medium and long-term financial health.
The business case is compelling. Financial wellbeing initiatives lead to reduced turnover, better productivity, fewer absences and a more resilient, engaged workforce. In a cost-conscious economy where every hire matters, employers are turning to financial benefits as a differentiator – not just a perk, but a core part of their value proposition.
An unprecedented opportunity for employers and employees alike
In a competitive labour market, people vote with their feet; they gravitate towards employers who provide genuine financial support and alleviate their anxieties. So smart employers are stepping up, and realising that providing a payslip isn’t enough; they need to help their people build financial resilience too – and with the right technology, they can.
This is more than a trend. Employers are moving into a space once owned by traditional finance and proving that with the right intent and infrastructure, they can deliver fairer, more effective support than the legacy system ever could.
What we’re seeing now is just the beginning. As financial wellbeing benefits become the norm rather than the exception, this employer-led model could reshape how we think about money altogether. Financial wellbeing support is becoming part of workplace culture in the same way mental health support has. The new employer role isn’t about education, it’s about providing tools which empower people to take control of their financial lives. In doing so, employers don’t just improve financial resilience, they build trust, loyalty and long-term value. This is the biggest shake-up to personal finance in centuries. The future of fair finance is here, and it isn’t built by banks – it’s built by employers.
The convergence of tech and brands 