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Writer's pictureCassandra Diamantis

What's the current state of financial wellbeing in Australia?

... and how does Fupay (Fu) promote financial wellbeing?


"Today, financial stress is higher than ever before, almost doubling over the past two years1”. Since 2014, AMP has researched financial wellness and released biyearly reports that map change as it evolves. This year's report indicates financial stress is weakening financial wellness, damaging psychological and employee wellbeing, and affecting employee performance.


Between 2016 and 2020 financial wellness numbers trended positive, with the number of Australians suffering severe financial stress halving from 6% to 3%1. Unfortunately, this positive trend was not sustained. In 2021, one in six families in Australia were very concerned about their family’s current financial situation and one in five were very concerned about their future financial situation2. Now, in 2022, nearly a million workers are severely financially distressed.


The nation-wide increase in financial stress has a number of causes but only two main key characteristics;1) Australians are dissatisfied with their current circumstances because they believe they will struggle to meet monthly bills and feel guilty about their financial situation. 2) Australians are worried about the future and the impact of higher interest rates, inflation, and extremely volatile markets1.


Before we continue, how about a quick poll of our own?

Are you financially stressed?

  • I'm not financially stressed

  • I'm a little bit financially stressed

  • I'm very financially stressed

Thanks for participating!


To demonstrate the financial situation of Australians, below are revealing statistics derived from AMP's report.

  • 59% of older Australians (65+) are worried about their debt

  • 26% feel guilty about their personal finances

  • 21% of employees are prevented from working productively by financial stress. This is almost double the 2020 figure

  • 21% of employees admit their productivity has fallen as a result of financial stress – this is nearly double the 2020 figure

How does Fu promote financial wellbeing?

Fu helps people take charge of their money and achieve financial wellness by providing a smarter and easier way to manage, save, spend and (coming soon) invest money, in a single app. As the those aged 18-29, the generation of technology, is the most affected by financial stress (31%) due to limited life experience and less time to build up a savings buffer1, Fu are well positioned to facilitate strategies that improve financial wellbeing through their technology solution.


Using banking transactional data, Fu’s 'Flow' feature provides personalised cashflow forecasting across future pay cycles, for each user, with actionable insights on how to best manage their money.


Each actionable insight enables the following transactional features within the context of future cash flow:

  • SmartSave - Allocate savings to future cash flow shortfalls, saving goals or to invest

  • SmartSpend - Make smarter spending decisions to save money

  • SmartEarn - Find additional income to meet cash flow shortfalls and pay bills

  • Smooth - Access credit to meet cash flow shortfalls and repay outstanding bills

  • SmartGrow* - Invest spare cash to build wealth (*coming soon)

Fu now enables businesses, such as banks, to provide its technology to their customers using a white label / platform-as-a-service solution.


Fu's mission is to improve the financial wellbeing, and therefore quality of life, of Australians... and then beyond. Click here to learn more about Fu.


If you're interested in joining Fu's mission and becoming a shareholder, be sure to register your interest in their equity crowdfunding offer!

 

*Always consider the general CSF risk warning and offer document before investing.


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