Finance industry disruptor sets out to end predatory loans

CFOs are stepping in to build more financially inclusive and supportive organisations with the help of a new HR fintech solution launched in 2021 by a finance industry disruptor.

Steven Furman is the CEO and Co-Founder of Paytime, an HR fintech that plugs seamlessly into payroll enabling employees to access a portion of their earned pay before pay day

The Sydneysider came up with the concept after realising that about half of Australians are now living pay cheque to pay cheque, many trapped in a cycle of debt perpetrated by predatory consumer loans.

Furman has spent more than 25 years in private equity and advisory, with a key focus on financial services, fintech and payments.

“I wanted to create a technology that seamlessly plugs into payroll that allows employees to access their pay in real time, if and when they need it, to help reduce their financial stress. Financial stress is the leading cause of mental health problems, so solving that problem can go a long way,” Steven Furman said.

Financial stress is a significant issue in the workplace, and has proven to be closely linked to mental health issues. It impacts more people than some may think, with 50% of Australians living pay cheque to pay cheque, while 33% can’t afford a $500 emergency, research from NAB/MLC and CBA respectively reveals.

“By offering a financial wellbeing benefit such as Paytime to your workforce, you’re building an organisation that is financially inclusive and supportive, without requiring your employees to step forward and confess their financial troubles, which is stressful in itself. Paytime means they can access the money they have already earned,” he says.

Furman explains that unbudgeted expenses often crop up mid-month, and by forcing employees to wait until payday, they often have no choice but to use credit cards, payday loans and BNPL schemes to ”fill the gap”.

“Paytime allows CFOs to equip employees with the tools to reach their financial goals by elevating them to a position of surplus, making it easier to save,” he says.

Paytime enables employers to pay their staff earned wages in real time, eliminating the need to wait for a set pay day to access their income when needed. For employees, this can reduce the stress of managing their finances, improving mental health and wellness.

It’s about nurturing a healthier and more responsible ‘save now buy later’ mentality, which provides far healthier financial outcomes for people.

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Source: Finance industry disruptor sets out to end predatory loans – CFO Magazine Australia