Financial Wellness & Inside Even

Financial Health Network and Even: Research to increase savings with Even

Can slight tweaks to our app make a big difference in member savings?
Financial Health Network partnering with Even

As part of Even’s work to develop and test innovations that improve financial health, we recently partnered with the Financial Health Network’s (FHN) behavioral economics experts to research and test best practices in encouraging savings.

This was important to Even because as a Responsible Earned Wage Access provider, we want to decrease our members’ reliance on on-demand pay by helping them build the savings they need to cover expenses that might come up between paychecks. In other words, even though we are happy to provide members with the flexibility and convenience of on-demand pay, Even’s real goal is to help them develop the financial health (and savings!) to not need it.

This latest FHN research project focused on how to increase savings among new employees at companies that offer Even’s Responsible Earned Wage Access platform as a benefit.

The Question:

How do we encourage employees to save when we aren’t able to auto-enroll them in an automatic savings program?

What We Learned:

By asking employees to describe their savings goals during the Even app’s onboarding process and then making them actively choose whether and how much to save, we can dramatically increase not only the number of people who choose to save but the amount of money they save, too.

After 8 months, those who had to make an active choice whether or not to save during onboarding were much more successful at saving money through the Even app than those in the control group, who had access to Even’s savings features but were not forced to make an active choice. In fact, the active choice group had 42% greater savings balances compared to those who did not see such messaging and had 31% more savers.

You can learn more about the research here or about Even’s approach to Responsible Earned Wage access here.

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