Hong Leong Bank (HLB) has announced the launch of its new earned wage access (EWA) solution, called the HLB Salary Advance Employer Solution, which will enable employees to access a portion of their already earned wages in advance, before the regular payday. It is rolled out in collaboration with Paywatch Malaysia Sdn Bhd.

In a statement, HLB explained that this new solution 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,” said the bank.

Employees from participating organisations who wish to access HLB’s new solution will first need to create an account on the Paywatch app. After their applications for salary advances have been approved, the amount will be credited to their bank accounts within one business day. This withdrawal in advance will also be automatically deducted and reflected in employees’ salary during actual payday.

The managing director of personal financial services for HLB, Andrew Jong said that this new solution will address key challenges in current conventional salary advance systems. At the same time, it will also improve and promote financial flexibility, literacy, and inclusion among Malaysians.

“By offering real-time access to their own earned wages, the HLB Salary Advance Employer Solution can help employees 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 wellbeing. 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 further said.

Employers and businesses, meanwhile, can benefit from a fully-automated system that is streamlined, efficient, and sustainable in managing their advanced salary payouts. They will not need to pay any deposits or perform any integration with any company software.

“With HLB’s backing, our solution would efficiently support employees’ financial security and resilience while providing companies with opportunities to offer enhanced benefits, thereby improving employee motivation and overall productivity,” said the founder and chief executive officer of Paywatch, Richard Kim.

(Sources: Hong Leong Bank, FintechNews Malaysia, The Star)

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• Andrew Jong
• Earned Wage Access
• Eearned Wage Access
• HLB Salary Advance Employer Solution
• Hong Leong
• Richard Kim