This session will discuss the evolution of the payroll, why on-demand pay is the future and how it fits into the fintech ecosystem, and why the financial services industry should care. Payroll is the point a consumer’s financial journey begins – without a steady inflow of funds, consumers simply cannot pay for items, let alone utilize the millions of fintech services available today. And, for most people, they rely on a paycheck as their main source of income.
However, on any given day, EY estimates that $1 trillion of employees’ wages are locked up in payroll systems across OECD countries. Meanwhile, millions of people live paycheck to paycheck, with little to no financial buffer in between the 2-4 week pay cycle. In fact, according to Ceridian’s latest research, one in two North American workers tapped into their savings account to pay for necessities in 2022.
As a result, they succumb to credit card debt or even payday loans to make ends meet. With financial stress at all-time highs, imagine what freeing up that $1T in capital would do for workers’ financial well-being. Over the past several years, on-demand pay has revolutionized the payroll experience by eliminating the need to wait for payday. Leading employers have successfully implemented on-demand pay solutions like Ceridian’s Dayforce Wallet to empower workers with instant access to their paychecks.
Most Important Points?
As more employers recognize the importance of on-demand pay, it will open the doors for millions of people to access their paychecks on any day of the month. Plus, it will act as a as a financial bridge for those lacking access to credit. This presentation will highlight how this will impact a consumer’s financial journey, and why it matters to the fintech industry. Explore how the fintech ecosystem can take advantage of a massive opportunity to provide every employee (a potential customer) with more sophisticated financial tools like robust budgeting options, lending products, credit building, investments, and more. What’s next after on-demand pay? What types of innovations will bridge the gap between the traditional two-to-four-week pay cycle and employees’ financial needs? Enter streaming pay, a technology pioneered by Ceridian that will automatically “stream” workers’ earned wages into their wallets in real-time. As workers face macroeconomic challenges like inflation, many are barely making ends meet, with little to no financial buffer to pay for unexpected expenses like a car repair or a medical emergency. Explore how employers like Danone North America and OTG Management have implemented on-demand pay to help alleviate this stress for their people, leading to increased retention and productivity at work.