Thursday, June 1, 2023
Paywatch and KB Bukopin Partner to Empower Indonesian Workers with Bank-Backed EWA Service
JAKARTA, 29 MAY 2023: Paywatch, a leading Earned Wage Access (EWA) provider in Asia, has partnered with Bank KB Bukopin (“KB Bukopin” or “the Bank”) to launch the first bank-backed EWA service in Indonesia, aimed at promoting greater financial inclusion and improving the financial well-being of employees. The successful launch of this service follows the signing of a Memorandum of Understanding (MOU) between the two companies, establishing the partnership framework and terms for the development.
Through Paywatch, employees in Indonesia can withdraw a portion of their earned wages early, solving cash flow issues that low-income workers face due to limited access to formal financial services and high-interest rates charged by informal lenders. Paywatch aims to provide liquidity to the workforce, empower Indonesian workers to focus on financial security and create a financially empowered community that can allow them access more financial benefits.
Paywatch’s EWA is the only backed and regulator-approved EWA solution in Asia that provides employees on-demand access to their earned wages without incurring any interest or fees, unlike other credit platforms and EWA services. This innovative solution is set to positively impact both employees and employers, creating a sustainable and fulfilled workforce that can achieve its full potential.
Richard Kim, Founder and CEO of Paywatch, emphasised the significance of the bank-backed EWA service in Indonesia, saying, “Our initial success in Malaysia and South Korea sets a good foundation for expansion into other markets, particularly in Southeast Asia. With the backing of a reputable financial institution like KB Bukopin, Paywatch can help businesses in Indonesia fulfil their ESG commitments and support their people.
”Paywatch's EWA is designed to be a seamless and hassle-free solution for employers. Signing up for the service requires no changes to existing HR management or payroll systems, and comes at no additional cost. With KB Bukopin's reliable infrastructure and regulatory framework, Paywatch offers a secure and trustworthy financial solution for employees, increasing credibility and trust in the service.
Tom Lee, CEO of KB Bukopin, expressed pride in being the first bank in Indonesia to collaborate with Paywatch and launch a bank-backed Earned Wage Access service. He stated, “We are thrilled to lead the way in driving financial inclusion and improving overall financial well-being in Indonesia with Paywatch. This partnership is a testament to our unwavering commitment to innovation and our customers' financial success."
"We believe that Paywatch's EWA service has the potential to empower the lives and livelihoods of employees across Indonesian businesses. This is a significant step towards building a sustainable digital banking and finance ecosystem that KB Bukopin is committed to achieving," said Robby Mondong, Deputy President Director at KB Bukopin.
To date, Paywatch's EWA solution has already surpassed more than 200,000 employees globally, improving retention rates for businesses that leverage Paywatch up to 75% and saving over IDR 6 billion in annual rehiring fees for SMEs and MNCs. Paywatch's commitment to transforming the landscape of a financially inclusive future is set to create a more sustainable and fulfilled workforce, taking care of the financial well-being of employees in Indonesiaand beyond.