It’s a fact: 40+ million U.S consumers are underbanked! Stats are all over the map but approximately 65% of consumers can’t lay their hands on $1000 to meet an emergency. These folks need, want and demand access to cash. Someone has to develop alternative, transparent, financial products. Not only must innovative financial products be developed but additionally, these financial services must be introduced by forward thinking financial institutions and entrepreneurs who can achieve “scale.”
Employers are on the front lines. If anyone recognizes the need for fairly priced, emergency access to cash “loans” it’s employers. How often do your employees request a loan or a paycheck advance? If you have a sizeable workforce, the answer is daily. Employers witness first hand the emotional stress their people experience when faced with financial stress.
The typical U.S. consumer is experiencing flat wages and a rising cost of living. Hit with a single emergency such as broken down transportation or a sudden medical issue – sometimes as simple as getting a prescription filled – their financial stress surfaces in their workplace. Traditional bank products just don’t work any longer for millions of workers.
One solution? Employer sponsored “Workplace Advances.” Workplace advances enable an employee to access up to 50% of their earned wages in anticipation of their paycheck at SUBSTANTIALLY lower rates than those offered by payday loan companies; we’re talking $1.50 fee for $20 advances. The “killer app” is the fact that neither the lender nor the employer require a lending license [it is NOT a credit or a loan], nor does the lender need a collections department, and these workplace advances experience ZERO defaults.
How are small dollar advances offered to employees for $7.50 per $100?
Read More: Employer Sponsored Workplace Advances.
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