The time for financial wellness solutions could never be more critical.
Following the record speed of rate hikes over the past months, 51% of middle-income Americans are struggling to save. Three-quarters of Americans live paycheck to paycheck, and 67% said they wouldn’t be able to cover a $400 emergency expense.
As a result, savings have been depleting, and 61% have stopped contributing to retirement.
While much of the online advice for this predicament is focused on the individual (with helpful suggestions of “get a second job or a side hustle”), employees are turning to their employers for help. According to a Bank of America Report, 82% felt that their employer should support their financial wellness.
Employers also feel the strain, with 97% stating they feel more responsible than ever for employees’ financial wellness.
At a time when inflation is reaching record highs, access to credit is sparse. The New York Federal Reserve’s April survey found that consumers’ outlook for the future is pessimistic, and 58.2% of respondents had found credit harder to access than the previous year. There is an expectation that credit will be even more challenging as the year progresses, leaving many in dire situations.
The alternative for many is informal avenues and predatory loan sharks, risking a ripple of long-term effects and crippling debt.
Within this tense landscape, Kashable and SecureSave have announced a partnership, bringing a solution to concerned employers. Under one dashboard, they can offer their employees SecureSave’s emergency savings accounts and Kashable’s low-cost loans.
A partnership to combat challenging times
“Employers are paying attention to what their employees need,” said Einat Steklov, co-founder and co-CEO of Kashable. “That includes greater access to credit and simpler, secure ways to pay off debt while building savings.”
“Working with SecureSave, we’re offering employers and their employee’s comprehensive financial wellness benefit programs during a time when so many employees could use a little help.”
Kashable’s low-cost loans allow employees to access credit, offering fast approval rates for loans between $250-$20,000. Repayment is made through salary deductions over 6-24 months. Employees that use the service can also keep track of their credit score, becoming more engaged in their financial health.
SecureSave, provides the other end of personal financial health, offering emergency savings accounts to employees.
These emergency accounts are an essential part of the puzzle. According to a survey conducted by SecureSave, in 2023, 59% of employees said their compensation isn’t keeping up with rising living expenses, nearly one-fifth more than two years ago. One-third of financially stressed employees are job-searching, and roughly half (46%) don’t believe there is a promising future for them at their current employer.
Employers who engage in their employees’ savings by providing emergency savings accounts reported less distraction within their workforce. Employees who had been given the benefit halved in job-seeking efforts and reported greater feelings of pride toward their work.
“We are proud to partner with Kashable to expand their innovative offerings to include emergency savings solutions,” said Devin Miller, CEO and Co-Founder of SecureSave. “Together, we drive more support to employees looking for ways to feel and be financially secure.”
Isabelle is a journalist for Fintech Nexus News and leads the Fintech Coffee Break podcast.
Isabelle's interest in fintech comes from a yearning to understand society's rapid digitalization and its potential, a topic she has often addressed during her academic pursuits and journalistic career.