Fintech tools ease financial stress for mental wellness

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October is Mental Health Awareness Month in South Africa, a time to reflect on the growing mental health challenges faced by many in the country.

Financial stress, a major contributor to poor mental health, is particularly pressing, with many South Africans struggling due to high unemployment, soaring debt, and the rising cost of living.

Research shows that the link between financial stress and mental wellbeing is undeniable. A recent survey conducted by the South African Depression and Anxiety Group (SADAG) found that 46% of respondents cited financial strain as a significant factor impacting their mental health.

The role of fintech in addressing financial stress

Amid these challenges, financial technology (fintech) is emerging as a potential lifeline for individuals overwhelmed by money-related stress. Fintech encompasses a range of digital financial tools, such as mobile banking, debt management platforms, and money management apps, which aim to help people manage their finances better and, by extension, reduce financial stress. One particularly impactful service is Earned Wage Access (EWA), which allows employees to access their wages before their regular payday.

Denise Neethling, head of marketing at Paymenow, highlights the significance of EWA, saying, “By providing access to earned wages before the end of the month, we are empowering employees to better manage their finances, avoid high-interest debt, and build a culture of saving. This aligns perfectly with the goals of Mental Health Awareness Month, offering South Africans a practical tool to take charge of their financial future.”

Read: SARB Governor highlights urgent need for shift from cash to digital payments in SA

The rise of fintech services like EWA offers tangible solutions for many South Africans who find themselves living paycheck to paycheck. These tools can help reduce dependence on high-interest loans and create more financial flexibility, leading to less stress and anxiety. According to a recent survey by Forbes Advisor, 54% of respondents often feel stressed by their debt, while 48% experience sleep difficulties due to financial concerns.

Fintech innovation supports mental health

Beyond EWA, fintech innovations, including open banking and financial aggregation apps, are also making a significant impact. These tools enable users to monitor their financial health and receive alerts about potential scams before transactions are finalized. Fintech services are also democratising access to financial education by providing cost-effective or free financial advisory resources. For instance, users can now access financial advice through podcasts, calculators, and budgeting apps that were previously only available through expensive financial advisors.

Looking ahead, fintech’s potential to support mental wellbeing is expanding. By leveraging artificial intelligence and data analytics, fintech platforms can offer personalised solutions, analyse spending patterns, and provide tailored recommendations that encourage financial mindfulness. However, experts caution that while these tools have transformative potential, ensuring accessibility and data privacy remains critical.

“Despite these challenges,” Neethling adds, “the opportunities fintech presents for improving mental wellbeing are vast. By offering real-time support, fintech can help address financial stressors before they escalate into serious mental health issues.”

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Devina Haripersad Business Journalist
Devina is a passionate journalist covering the business beat, with a knack for uncovering the story behind the numbers. When she’s not exploring the latest developments in business and politics, Devina unwinds with long cardio sessions and sharing memes with friends who don't always get her dark sense of humour.

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