Over 2 000 Hollard Insurance employees can now access salaries in advance through digital bank TymeBank.
The insurance company is the latest business to sign up for the bank’s TymeAdvance, a zero-interest solution that gives staff early access to their salaries.
TymeBank first announced salary advance products a year ago, as the bank sought to diversify its client base.
Salary advance products include the bank agreeing to give clients a portion, or the entirety, of a future salary before the usual payday.
Yesterday, the bank said the salary advance offering is only available to employees whose employers have signed up with TymeBank.
“TymeAdvance has found favour with companies of all sizes. The latest company to sign up is Hollard Insurance, which has over 2 000 employees who can now access TymeAdvance,” says the bank.
With the offering, TymeBank will receive real-time payroll data from the employer to calculate the available advance for each employee.
Employees will then be invited by the employer to use TymeAdvance and can apply directly via the TymeBank app or by SMS (USSD)
TymeBank says the employee can then select how much they need (up to R5 000 per transaction), once approved, the money will be deposited immediately into the employee’s account.
The cost to the employee per transaction is pegged at R30.
The bank notes TymeAdvance is not a loan, there are no interest rates, no credit checks and it will also not impact credit scores.
“It’s not uncommon for cash-strapped individuals to pay ‘loan sharks’ interest rates that are 10 times higher than they would pay at a bank. These unsavoury lenders have no qualms about turning up at the individual’s place of employment to collect their debt,” says TymeBank executive Jarred Deacon.
“With TymeAdvance, employees have early access to their own hard-earned money, along with tools that help them manage their finances and improve their financial well-being.
“Employers that have adopted TymeAdvance as an employee benefit are already reporting positive results, including improved productivity and reduced absenteeism. What we are seeing is that people are opting to use TymeAdvance rather than expensive credit options that penalise you with high interest rates.”
TymeBank CEO Coen Jonker added: “Consumers are having a tough time making ends meet, even those fortunate enough to be employed. TymeAdvance makes it easy for employers to offer much-needed relief to cash-strapped employees.”
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