During the harsh economical times that South Africans are facing, TymeBank, one of the country’s fastest-growing digital banks, has announced it will be helping businesses reduce their employees’ financial stress with TymeAdvance, a zero-interest solution that gives staff early access to their earned salary, while protecting them from expensive debt.
“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,” says TymeBank CEO Coen Jonker.
Launched at the beginning of the year, TymeAdvance has found favour with companies of all sizes.
The latest company to sign up is Hollard Insurance, which has over 2000 employees who can now access TymeAdvance.
“Employers that have adopted TymeAdvance as an employee benefit are already reporting positive results, including improved productivity and reduced absenteeism,” says TymeBank executive Jarred Deacon.
According to Deacon, staff members at participating companies are reporting reduced financial stress, decreased credit use and an improved ability to budget and save for the future.
“What we are seeing is that people are opting to use TymeAdvance rather than expensive credit options that penalise you with high interest rates,” he says.
How it works
- TymeAdvance is only available to employees whose employers have signed up with TymeBank.
- TymeBank will receive real-time payroll data from the employer to calculate the available advance for each employee.
- Employees will be invited by the employer to use TymeAdvance. They can apply directly via the TymeBank app or by SMS (USSD)
- The employee can then select how much they need (up to R5000 per transaction).
- Once approved, the money will be deposited immediately into the employee’s account.
- The cost to the employee per transaction is R30
Because TymeAdvance is not a loan, there are no interest rates, no credit checks and no awkward conversations that could upset smooth working relationships. TymeAdvance 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 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.”
BUSINESS REPORT