Indonesian Financial Wellness Startup Wagely Launches in Bangladesh
According to a press release, Indonesian financial wellness startup Lohnly announced that it had stepped into Bangladesh and started with over 50,000 employees at some of the country’s largest apparel manufacturers, including SQ Group, Youth Group and Classic Composite. Wagely helps companies to give employees access to their “earned but not yet paid wages in order to reduce financial stress and increase their productivity, motivation and loyalty”.
The expansion makes it Indonesia’s first financial wellness platform to expand its services to Bangladesh. Wagely raised $ 5.6 million in funding about two months ago.
Wagely’s financial wellness platform, founded in Indonesia in 2020, focuses on Earned Wage Access (EWA), direct and affordable access to a salary that has already been paid. The application of Wagely allows workers to get paid every day of the month instead of waiting months for salary, which helps eliminate the need for loans and has a significant impact on workers’ wellbeing.
The company says it enables employees to see their earned salary in real time, which gives them insight into their financial situation, motivates them, and helps them make responsible financial decisions. In turn, employers benefit from increased productivity, lower turnover costs and increased business savings by offering employees the Lohny financial wellness platform.
Wagely’s plug-and-play platform ensures that companies do not have to change their existing processes and can be adapted to the specific needs of each employer.
By expanding into the fifth largest country in Asia, Lohny is accelerating its mission to reduce financial stress for millions of workers in Asia. According to the company, it has worked with over 70 companies in two markets that serve well over 100,000 employees. In Indonesia, the company has partnered with some of the largest Indonesian companies in recent months, including Adaro Energy, Medco Energi, British American Tobacco, Ranch Market, Century Pharma, and others. The company says it saw unprecedented growth in its workforce base of 517% in the third quarter of 2021 and is on track to reach over 250,000 employees by the middle of next year.
Coping with financial worries is the main problem in everyday life for low and middle income workers in Asia. With limited opportunities to build sustainable savings, many struggle to meet basic needs. The coronavirus pandemic has accelerated the challenge.
Tobias Fischer, CEO of Lohnly Shared: “While Indonesia continues to be our priority given the country’s large workforce urgently in need of fair financial services, Bangladesh, with over 4.5 million employees in the ready-only clothing industry (RMG). The Workers in Bangladesh are hard hit by the ongoing COVID-19 pandemic, which has created increased financial stress with a significant impact on manufacturers. We are encouraged by the very strong demand from some of the largest ready-made apparel manufacturers to be in this first Work with us during the introductory phase and look forward to more employers adopting the future of payroll. “
Mr. Warisul Abid, Chief People Officer of SQ Group, said: “With the rapid pace of technological advances, people can access almost anything instantly today. The wages of workers should be no different with real-time access to their wages. With Lohny, our employees can now track and access their earned salary at any time between the traditional monthly pay cycle including evenings, weekends and holidays. Just a few days after the introduction, we were already able to achieve positive results. Effects of the Lohny solution on the productivity and motivation of employees. “
“Providing workers with real-time access to their wages and financial literacy is only the first step in building financial well-being. We are on our way to building a holistic financial wellness platform with the underlying drive to provide workers with access to affordable services that encourage financial responsibility and provide a path to financial stability and inclusion, “added Fischer.