Paper

Meeting Them Where They Work: The Promise of Financial Services Distribution in the Workplace

What is the potential of providing financial services at the work place?
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This paper focuses on financial services, which if provided in the workplace, can create another pathway to greater participation in retirement and other longer-term workplace saving programs.

The paper discusses the following aspects of these financial services:

  • Scale: Direct deposit of salary into bank account of the employees is seen by banks and credit unions as a way to gain commercial customers' payroll accounts and provide those customers with an additional benefit for their employees;
  • Facilitation: The workplace can be an effective delivery channel for financial services because of the relative ease of facilitation of financial products;
  • Timing: Firms have opportunities to reach customers the moment they get paid and make a variety of other financial decisions, such as saving for retirement and choosing insurance programs.

The paper concludes that:

  • Workplace distribution is evolving rapidly;
  • Individuals are shouldering more responsibility for their financial health and well being;
  • Employee-consumers have become the focus of more interest and there are an increasing number of service providers competing for the employees' share of wallet;
  • Employers will need to be vigilant and offer products that fill the gaps in employees' financial needs.

About this Publication

By Jacob, K.
Published