What is Earned Wage Access
Earned Wage Access is a means whereby employees can access a portion of the funds that they have already earned before payday
Why we introduced Earned Wage Access
Whilst 90% of the loans that Kaelo Money grants are multi-month, owing to people needing larger amounts to cater for emergency events and/or repay and consolidate existing debts, we recognised employees also need small amounts for day-to-day expenses, whereby disposable income may not be sufficient to cover expenses towards the end of the month. Due to the decreased risk associated and its month to month nature, Earned Wage Access facilitates this at a lower fee. It is not a credit product and is therefore not governed by the National Credit Regulator, therefore all employees would be able top access this service.
Will it also drive financial wellness and financial health?
Earned Wage Access will also follow Kaelo Money’s goal, to turn irresponsible borrowers into responsible savers. Key to this is driving financial education and by extension, financial coaching. Like the Emergency Wallet and market place, every time they request for an extension, they will receive a financial coach reminder SMS, which we see strongly driving the financial wellness and financial coaching utilisation across the platform. Integration within the platform is key, and as such, from the Earned Wage Access platform, financial wellness is just one click away.
Will it affect the current processes within Kaelo Money?
There will be no changes to the existing process. The Earned Wage Accesses fall on the same statement as the Emergency Wallet and Marketplace. There are no extra steps or administration required. It is a fully integrated solution.