Paving the way for a smarter, safer future of financial inclusion with Paywatch

In recent years, financial inclusion has become a hot button issue, especially as economies seek to recover from the pandemic, which disproportionately impacted lower-income groups.

With global inflation on the rise and prices for consumer goods and necessities soaring, households must now also contend with added strains to their finances. For unbanked and underbanked lower-income populations, the situation could turn dire.?

Low-income wage earners tend to live from paycheck to paycheck, leaving them without a cushion for sudden, unexpected costs. In Malaysia, 90% of employees have found themselves needing emergency funds and 88% have resorted to borrowing money from informal sources to alleviate the pressure, leaving them vulnerable to predatory lending.

Financial inclusion can be a game-changer for the unbanked, as access to more banking services opens doors to greater economic opportunities and growth. It’s heartening to see legacy financial institutions like Bank Negara Malaysia (BNM) make financial inclusion one of its key goals for the next five years. Malaysia and the broader Southeast Asia region needs more initiatives like this – and for other banks and financial institutions to step up.?

Financial Empowerment with Paywatch

Earned Wage Access (EWA) solutions can be a simple yet effective tool towards achieving such inclusivity. By rethinking rigid, traditional payday structures, we can offer the workforce greater financial access simply by enabling them to withdraw money they have already earned ahead of payday, if needed.

A more flexible payment system is a small yet crucial step forward towards financial empowerment. For businesses, it helps create? a happier, more motivated workforce, with reduced turnover and increased productivity.?

For employers who are looking to break away from the traditional pay cycle and implement EWA, here’s why Paywatch can be the right partner:

• The lowest fees: Some EWA companies finance withdrawals at the expense of the employee by charging high withdrawal or interest rates that could further hurt low-income workers.? At Paywatch, our focus remains on delivering financial inclusion, which is why withdrawal fees are as low as RM1, the equivalent of an ATM withdrawal charge.
• Seamless implementation: Businesses can easily adopt Paywatch at no additional cost without any disruption to their payroll systems, easily enabling them to help their employees bridge financial gaps.
• Withdrawal cap: With Paywatch, employers have the option to cap withdrawals at a certain rate, ensuring that employees use their salaries responsibly , without disrupting cash flow for the following month.
• The only EWA solution partnered with major banks: Thanks to Paywatch’s strong banking partnerships, employers can effortlessly link their employees up with the financial system, and help their low-income workforce build a credit history that will open up more financial opportunities.?
• Dedicated to financial inclusivity: Paywatch is the only EWA solution currently recognised by the United Nations Capital Development Fund for its commitment to environmental, social and corporate governance (ESG) standards.

EWA solutions are meant to allow employees easier access to their salaries, but beyond that it should enable greater financial security and financial inclusion.?

Ultimately, businesses that offer employees stronger support in addressing their financial difficulties are likely to benefit from a workforce that is more productive, loyal and engaged.

If you’re interested in playing your part in financial inclusion and need more information on how to get started with EWA, please reach out to our helpful team at Paywatch at [email protected] .