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| Additional information |
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| FlexWage Solutions |
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Overview:
FlexWage is dedicated to improving financial access and well-being for the unbanked and underbanked populations, benefiting workers, employers, and their surrounding communities. Our solution, WageBank®, interfaces with employer HR and payroll systems to provide employees with access to accrued wages, helping American households avoid the debt trap associated with using high-cost lending alternatives. Many of these employees live paycheck to paycheck and spend a disproportionate percentage of their income on financial services such as check cashing, bill payment, money orders, payday loans, and other short-term cash sources. FlexWage drives cost savings for employee and employer, with increased productivity, job satisfaction, and worker retention.
The breadth of problem: Of America’s 140 million employed citizens, more than 70 million are considered underbanked or credit underserved, and an additional 28 million, or 20 percent, are unbanked. More than two-thirds of Americans making less than $30,000 a year are unbanked. Twenty-four percent of Americans have all of their earnings spoken for each month, and only 35 percent have sufficient savings to handle an unplanned $1,000 expense. To bridge these gaps, Americans pay more than $20 billion annually in fees for alternative financial services such as payday loans, pawn shops, auto title loans, check cashing, and money orders. Payday loans alone generate $8 billion in fees. An additional $38-plus billion is spent on overdraft and insufficient-funds fees. With the impact of the Durbin Amendment escalating banking fees to consumers, the FlexWage value proposition becomes relevant to an even greater number of working Americans. The national median monthly fee for a checking account is $8.95, more than $107 per year. The national median minimum combined balance to avoid that monthly fee is $2,500.
Estimates show that average unbanked individuals making $22,000 a year spend more than $1,000 annually to simply cash checks and pay bills. Further, since they have not been able to build an economic buffer to deal with unforeseen emergencies or short-term cash volatility, they often turn to predatory products in a variety of flavors referred to as “payday loans” between paychecks. This average payday borrower makes nine loans each year, spending more than $700 for the original $325 loan.
The Solution: By combining the FlexWage payroll card with our proprietary WageBank technology, we can eliminate their reliance on the entire range of these expensive products, prevent employees from incurring further debt, and help them establish a more secure economic future. In addition, by mitigating financial stress, we drive downstream health benefits and increased productivity in the workplace.
FlexWage® and WageBank deliver a high-value, low-cost
employee benefit to your company. |
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| Toll Free:
+1 888 924 3226 |
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