Hong Leong Offers Salary Advances With Paywatch’s Earned Wage Access Solutionby Fintech News Malaysia June 28, 2023 0 comments
Hong Leong Bank (HLB) has tied up with earned wage access (EWA) service provider Paywatch Malaysia to launch the HLB Salary Advance Employer Solution. HLB claims to be the first bank in Southeast Asia to back an EWA solution.
The HLB Salary Advance Employer Solution enables employees to withdraw up to 25% of their monthly earned salaries, whenever the need arises.
There are no interest or late charges, except for a nominal service fee of RM 2 per withdrawal.
To access the HLB Salary Advance Employer Solution, employees from participating organisations can create an account on the Paywatch app.
Once approved, salary advance requests will be credited to the user’s bank account within one business day. On payday, the advanced amount withdrawn will be automatically deducted from the employee’s salary.
On the employers’ end, the bank said that there is no cash flow impact and no deposit or integration with any company software required.
Andrew Jong, the Managing Director of Personal Financial Services at HLB said,
“The rising costs of living and inflation increase the financial pressure on particularly the lower- to middle-income earners and households. In such circumstances, the payroll timings and conventional salary advance methods may not be able to provide timely assistance to meet cashflows and unexpected demands. This may leave individuals vulnerable to unsustainable borrowing practices.
By offering real-time access to their own earned wages, the HLB Salary Advance Employer Solution can help employees to tap into their earned but yet-to-be-paid wages and improve their control over their own finances, overcome short-term financial challenges, and improve their overall financial well-being.”
Richard Kim, Founder and CEO of Paywatch said,
“We partner with leading banks across different regions, including Hana Bank in South Korea, to ensure fair pricing, consumer protection, and greater financial access to all.
With HLB’s backing, our solution would more efficiently support employees’ financial security and resilience while providing companies with opportunities to offer enhanced benefits, thereby improving employee motivation and overall productivity.”