Emerging tech Trends
Providers of financial services and HR service tools are exploring new technologies. These include artificial intelligence (AI), new mechanisms for leveraging data, and tools for collective decision-making. Although adoption of emerging technologies has historically been limited in employer-provided services for financial security, that may not be the case for much longer. Crunchbase found that funding in the HR tech sector “more than doubled” in a four month period, and by November 2021, total venture dollars stood at “nearly $7.5 billion for the year—more than the totals for 2019 and 2020 combined.” To understand the possible impacts on worker financial security, it’s important to understand the technology trends that are driving change across all industries and explore how they may show up in the worker financial security context:
7.5B
Total venture dollars stood at “nearly $7.5 billion for the year in November 2021—more than the totals for 2019 and 2020 combined —Crunchbase
Personalization
There is a wide variety of financial challenges workers face, and an even broader variety of approaches to addressing them.
Employers and workers agree that companies have a responsibility to help worker financial security, but there is a disconnect between services being provided and what workers actually need. For workers to be able to reliably make use of the services provided by employers, the services need to be individually applicable and discoverable by workers. For instance, if workers lack savings and spending funds, they will be unable to fully make use of services such as financial planning classes or discount programs, no matter how much their employers invest in them. Employers must align the financial security resources they provide with the financial realities of workers in order for workers to take full advantage of the services offered. This is where personalization technology might help.
Personalization is a process of adjusting the content that users of a digital service experience based on data about those users like profile characteristics or interaction patterns. Personalization, especially using machine learning technologies, is now embedded into a wide range of digital consumer experiences including video recommendations, social media newsfeeds, and tailored online shopping experiences. Growing numbers of consumers have come to expect personalization from the companies they engage with from news outlets to healthcare providers, but they also want privacy and data transparency. In their 2020 State of the Connected Consumer Report, Salesforce found that 66% of consumers “expect companies to understand their unique needs and expectations,” while 86% want to know how data about them is being used. A survey by Accenture Strategy found “more than six in 10 workers (62 percent) would exchange their work-related data for more-customized compensation, rewards, and benefits.”
62%
More than six in 10 workers (62 percent) would exchange their work-related data for more-customized compensation, rewards, and benefits —Accenture Strategy
Increasingly, companies are turning to emerging technologies like AI to leverage consumer data and facilitate more personalized experiences through predictive offers, recommendations, or customer service automation like chatbots. This includes the financial services industry, where according to Deloitte, AI has “enabled them to become increasingly more data driven to better understand their customers and predict varying customer demands.”
With the influx of HR tech investment, there are a growing number of options for companies looking to invest in personalization tools to support workers. Employers may be able to use AI tools to address worker pain points. “One part of AI’s job here is to ensure the employees who need these things receive access to them,” says Anand Rao, Global Leader, Artificial Intelligence at PwC. “AI can ‘nudge’ employees and help them find and navigate the right benefits at the right time. Often employees don’t know what benefits they have, or find the benefits challenging to leverage.” More interactive interfaces like Jellyvision’s ALEX Benefits Counselor, could also help fill this gap, and recent advancements in conversational AI like chatGPT may lead to systems that are even more conversational and open-ended.
“One part of AI’s job here is to ensure the employees who need these things receive access to them…AI can ‘nudge’ employees and help them find and navigate the right benefits at the right time.”
Anand Rao, Global Leader, Artificial Intelligence at PwC
Alternative Data Sources
Another place where companies can step up to support financially insecure workers is through the supplementary data that employers collect that either the companies or workers themselves can provide to help workers secure access to financial products like personal loans, credit, and more. This could be particularly transformative for the most vulnerable low-income workers who are often missing key information required by financial institutions in order to access services.
Credit scores are one of the most difficult but critical barriers for low-income workers to overcome as they are used by lenders to evaluate individuals who apply for loans to pursue higher education, secure transportation, or start their own businesses. Low-income workers, especially those whose primary income is from gig or contract work, are often unable to build meaningful credit scores because they have little or no traditional credit history. 28 million American adults have no mainstream credit file and are considered “credit invisible,” while another 21 million are considered unscorable because there is not enough information to generate a conventional credit score, according to Experian.
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28 million American adults have no mainstream credit file and are considered “credit invisible.” —Experian
There has been an increased push to break out of the traditional credit model towards a more flexible model, one that is more in line with the realities faced by many low-income workers. Plaid recently launched Plaid Income, an income verification service that retrieves data directly from payrolls, documents (like pay-stubs or W2s) and bank income, to send directly to lenders as part of the underwriting process. Nigerian fintech firm ImaliPay, is a “one-stop-shop” for gig workers and platforms to have access to services like buy now, pay later (also called “BNPL”), insurance, and savings. With more services geared towards creating more flexibility in the financial security space, companies can take part through the financial data they create from their payment systems and by streamlining how these services interact with their workers.
Financial services providers are also beginning to look at alternative sources of data to assess credit, interest rates, and more in the form of rental payments, utility bills and bank account information. Nova Credit found in a survey that 50% of lenders are ready to adopt alternative data sources. Employment and income verification are two of the main sources of data companies can provide for their workers, but as data plays a larger role in business management, more sources of data about workers may become available. This can be especially helpful for gig, contract and part-time workers to indicate that a worker has consistent cash-flow. Some companies are bringing financial services in-house by providing employer-sponsored small-dollar loans directly and are using length of employment and good standing to underwrite them. If employers are able to use these data points to underwrite small loans to their workers, it stands to reason that external financial services could use them as well, freeing up additional options for workers who may not be comfortable owing money back to their employers.
Data Risks
Data can be powerful for unlocking benefits, but it is not without risks. Although data about workers (such as workplace attendance data, health and safety information, and skills and training records) could be leveraged to help workers achieve greater financial wellbeing through personalized outreach and tailored support services, this information can also be used punitively. A driving force behind data on workers is employer’s lack of trust. Top10VPN, a virtual private network review site, states: “Employee monitoring software demand has been 63% higher on average since the start of 2022 than it was in 2019.”
63%
Employee monitoring software demand has been 63% higher on average since the start of 2022 than it was in 2019 —Top10VPN
While data may be a tool that can help financially insecure workers access services such as alternative credit or personalized benefits offerings, it can also jeopardize their job security, which presents a direct risk to workers’ financial security. Regardless of place of work, algorithmic management has been on the rise and has been increasingly used to monitor workers across industries. These tools track not just speed of workers at their tasks but can also track general satisfaction levels and even bathroom breaks. Drivers for ridesharing companies like Uber may not receive payment for the time spent waiting for their next ride, but companies still track them while they wait. Many workers are being monitored from the moment they clock in, and often not to the benefit of these workers. According to Tech Monitor, “constant algorithmic monitoring, combined with surveillance, also increases insecurity, because workers feel like they’re being constantly evaluated.”
constant algorithmic monitoring, combined with surveillance, also increases insecurity, because workers feel like they’re being constantly evaluated.
Tech Monitor
This is further exacerbated by the intrusiveness of some of the data being collected. Employers are increasingly integrating biometrics into the workplace in efforts to enhance security and to monitor health and safety. As technologies like wearable computers and immersive technologies become more widespread, the scale of this type of data is likely to grow. Similarly, the alternative financial data referenced above may have complicated privacy implications as well. Although the relationships between workers and their employers may provide valuable insights into credit-relevant behavioral patterns, the credit gains may be outweighed by the privacy costs.
Although well-intentioned companies may aim to leverage data to create more personalized services to benefit the wellbeing of their workers, this data may carry significant risks to workers and the companies that employ them. Accenture found that 64% of workers say data privacy scandals make them concerned that their personal data might be at risk of getting into the wrong hands. Many companies — especially small- and medium-sized businesses (SMBs) — are not equipped to responsibly manage the sorts of sensitive data that biometrics or personal financial information involve. This means that companies may assume greater risk when collecting these types of data or may become more reliant on third-party vendors to store, process, and secure this data for them.
64%
64% of workers say data privacy scandals make them concerned that their personal data might be at risk of getting into the wrong hands. —Accenture
The risks and liabilities associated with worker data may present for employers may be cause for concern, but there have been several efforts in recent years to mitigate these risks. Amidst growing public awareness of privacy risks, companies have voluntarily adopted principles for data responsibility with regard to consumer data. Employers can seek out vendors with clear data rights and protection policies for managing worker data.
Technology Governance
Another trend shaping the future of worker financial security is that of agency. Workers have increasingly come to value autonomy in the workplace. Central to this autonomy is control over data, a trend gaining popularity both inside and outside the workplace. Senior Policy Adviser at the Trade Union Advisory Committee to the OECD, Anna Byhovskaya notes power imbalance for data control begins when someone applies for a job, noting, “It is difficult not to provide consent if you enter a recruitment process, start a new job or are asked to agree to new processes at your current place of work.”
“It is difficult not to provide consent if you enter a recruitment process, start a new job or are asked to agree to new processes at your current place of work.”
Anna Byhovskaya, Senior Policy Adviser at the Trade Union Advisory Committee to the OECD
As work becomes more digitized and workers may increasingly find themselves working alongside automated technologies — like the robots used in Amazon fulfillment centers — or even generating data and knowledge that is used to develop advanced intelligent systems. Some work may even expand further into the digital realm through immersive technologies, sometimes called the “metaverse.” In these contexts, it may become difficult to differentiate where the worker stops and the work output begins. With these possibilities ahead, companies have an opportunity to protect workers and promote greater autonomy by investing in worker governance.
Two prominent forms of worker governance are employee cooperatives or employee stock ownership plans (ESOPs). These increase worker autonomy by making employees shareholders, and have been shown to reduce wealth inequality by providing broader access to wealth-building opportunities. They can also end up providing significant financial benefits to those employee owners. The same principles about governance of the business can be applied to governance of data about workers. Investing in collective decision making and data transparency can allow employees to have control over decisions that will directly affect their work and their benefits.
Absent formal channels, some tools have already been developed to help workers gain greater insight into data related to their work. Cooperatives like Driver’s Seat and organizations such as Worker Info Exchange and WeClock have risen over the last few years offering platforms that allow workers to share data and insights amongst themselves. “Because the data we’re creating is fundamentally shared,” says Divya Siddarth, a political economist at Microsoft, “collective structures like data cooperatives are the appropriate vehicle to negotiate on behalf of data holders like you and me.” More traditional worker organizing is also on the rise (there was a 57% increase in union election petitions during the first 6 months of 2021), with worker-driven union drives in manufacturing, service industries, and big tech. These trends may lead to newly-negotiated agreements that promote greater worker agency.
“Because the data we’re creating is fundamentally shared, collective structures like data cooperatives are the appropriate vehicle to negotiate on behalf of data holders like you and me.”
Divya Siddarth, political economist, Microsoft
Although data about workers may not always be used for their benefit, there are many paths forward that can leverage technology to empower workers. Worker needs, especially for the most vulnerable, must be considered whenever companies are evaluating potential investments in technologies that might impact workers’ financial security. One strategy to ensure that investments in worker financial security are well-spent is to make sure that workers play an active role in the decision-making process.
Outlook for Workers
There are a number of challenges facing workers in the years to come. Following the start of the COVID-19 pandemic, many workers have experienced dramatic upheavals. Globally, roughly 114 million people lost their jobs in 2020 including the 22 million in the U.S. While employment levels are back to, and even exceeding pre-pandemic levels, the labor market is still facing serious disruptions with major layoffs across various sectors, record high inflation closing out 2022. Additionally, there is a looming economic recession that will most likely impact industries with low-income workers the most. A large majority of whom are from marginalized communities. When workers are financially insecure, they aren’t able to build savings and invest in ways that build wealth for themselves and their families. According to the Federal Reserve Bank of St. Louis, the “the median wealth gap between white and Black families has hardly changed over the last 20 years,” while the gap between white and Hispanic families has increased slightly.
114MM
Globally, roughly 114 million people lost their jobs in 2020 — including 22 million in the U.S. —World Economic Forum
And yet with those challenges come opportunities for worker advancements and improvements.
Industries tied to the supply chain are experiencing changes while still trying to recover from a persisting disruption triggered by the COVID-19 pandemic. SHRM (Society for Human Resource Management) released a report laying out the number of issues preceding the pandemic that led to the current state of the supply chain and makes abundantly clear the need for foundational changes, especially in the workforce. In June of 2022, there were 5.5 million more job openings than there were workers to fill them. The labor shortages in the impacted supply chain industries are forcing companies to rethink the services and incentives they can offer to workers, which in turn is giving workers the power to demand more of their employers. This may have a fallout effect in the years to come, however, as employers face greater economic incentives to automate their processes and lower labor costs.
5.5MM
In June of 2022, there were 5.5 million more job openings than there were workers to fill them. —Bureau of Labor Statistics
Beyond the COVID-19 pandemic, there are a number of other factors that will continue to impact workers in the long term. Low-income workers are the group first and hardest hit by the effects of climate change. However, the demand for alternative forms of energy and resources due to climate change and resource scarcity have already sparked job growth in these industries. The 2022 Inflation Reduction Act is expected to create more than 9 million jobs over the next decade according to a report commissioned by the BlueGreen Alliance. With these significant investments in growing the domestic response to climate change, there is a unique opportunity for workers to gain new skills in developing industries. There is a risk that these opportunities will be more available to high-skilled (and high wage) workers, but advocates for unskilled workers are calling for increased focus and investment to include “unskilled” workers in the “green transition.”
9MM
The 2022 Inflation Reduction Act is expected to create more than 9 million jobs over the next decade. —BlueGreen Alliance
Another potential factor in the outlook for financially insecure workers is the impact of AI on the availability of work and value of certain kinds of labor. Many of the eye-catching recent advancements in capabilities afforded by AI are expected to primarily impact knowledge work (and may even expand access to work by lowering barriers to entry for less-trained workers), but there are concerns that increased competition for traditionally less accessible jobs may lead to lower wages being paid for those jobs. That said, adoption of technology tends to take time, and many companies are still early in their integration automation technologies, so there is still a lot of uncertainty about the ultimate impacts of these changes on workers.
Although the issues impacting workers’ financial wellbeing won’t be solved with financial security services from employers alone, actions that companies can take today include intentionally diversifying higher paying roles, ensuring all workers are being paid fairly, and providing financial security resources. Supportive technologies aimed at bolstering savings, credit, and investment practices could help to narrow the racial and gender wealth gap and help keep workers in their jobs at a time when 40% of people are unhappy in their roles and are considering leaving. Other offerings, such as employer-provided childcare, mental health services, and flexible scheduling can help to address many of the obstacles women and people of color face in becoming more financially secure.
Technological advances and continued economic instability have put the modern workforce in a constant state of flux. Workers need support to achieve financial security, this is especially true for the most vulnerable workers. Those who are low-income and lacking formal education need help gaining, and then maintaining, financial security. A critical factor in getting there is with employer-provided services. While systemic reforms are needed, there are actions employers can take today to be one of the most stabilizing forces in workers’ lives, and, as discussed earlier, when employers invest in their workers, they see a substantial return on that investment, in turn.
AuthorS
Morgan McMurray, Shanthi Bolla, & B Cavello
Dive into this Guide

Current Context
Many employers now offer a variety of resources to help stabilize workers’ funds to help avoid short-term financial difficulties.

Expert Insights
HR decision-makers, labor advocates, social entrepreneurs, and experts in financial security share their perspectives.

HR Resource
How to navigate researching and implementing new services, with an eye toward improving the financial lives of workers.