Hong Leong Bank managing director of personal finance services Andrew Jong (left) and Paywatch founder and CEO Richard Kim (right).
KUALA LUMPUR: Hong Leong Bank Bhd
(HLB) has partnered with Paywatch Malaysia Sdn Bhd to launch HLB Salary Advance Employer Solution, making it the first bank in Southeast Asia to back an earned wage access (EWA) solution.
In a statement, the bank said the solution aimed to empower Malaysians by providing them with easy access to their earned salaries, and is set to transform the way businesses offer and manage their advanced salary payouts.
“The HLB Salary Advance Employer Solution is a simple, seamless digital platform that enables employees to withdraw up to 25% of their monthly earned salaries, whenever the need arises. There are no interest or late charges, except for a nominal service fee of RM2 per withdrawal,” HLB said.
Managing director of personal financial services Andrew Jong said the solution not only bridges the gaps and addresses the pain points in the current conventional salary advances, but also fosters financial flexibility, improves financial literacy and promotes financial inclusion for Malaysians.
“By offering real-time access to their own earned wages, the HLB Salary Advance Employer Solution can help employees to tap into their earned but yet-to-be-paid wages and improve their control over their own finances, overcome short-term financial challenges, and improve their overall financial well-being.
“To further improve financial awareness and responsibility, users will also need to consider that they can meet their month-end financial commitments prior to requesting a salary advance,” Jong said.
He added that the new EWA solution would also help employers and businesses manage their advanced salary payouts, providing a fully-automated system that is streamlined, efficient and sustainable.
Meanwhile, Paywatch founder and CEO Richard Kim said: “With HLB’s backing, our solution would more efficiently support employees' financial security and resilience while providing companies with opportunities to offer enhanced benefits, thereby improving employee motivation and overall productivity.”
