FUTURE OF PAYMENTS
Experian foreword Experian is a new partner of the Future of Payroll Report , and its involvement comes at a time when rising living costs and inflation are set to significantly impact almost half the working population. We launched Work Report TM in November last year with the mission to facilitate access to fairer finance for all employees. Work Report simplifies the often time consuming and confusing credit application process by automating the sharing of payslip data – with an employee’s consent – with an organisation of their choice, streamlining income and employment verification in the UK. This is an important innovation, which also saves employers hours of time and resource handling and processing requests from employees to share their payroll data, for example, during a mortgage application. Our acquisition of cloud payslip provider, PayDashboard, allows us to further support employees, helping them to understand their pay and payslips, and to take greater control of their financial well- being.
Damon Anderson
Chief product officer - verification services, Experian
We believe that financial well-being begins at payday.
PayDashboard’s research revealed 62% of employees had felt confused about their payslip at one time, while one in ten struggle to understand their payslip every payday. Subsequently, many could be paying the wrong amount of tax or be completely unaware of the tax reliefs and allowances available to them. Responsible financial management and access to affordable credit will play an important role in helping employees cope with the squeeze on their incomes. It’s encouraging to see organisations considering pay on demand as one potential solution. While many of us see the advantages of earned wage access over short-term loans, many survey respondents are rightly concerned about the danger of this ‘quick fix’ becoming heavily relied upon each month and becoming unsustainable in the long term. This is before we consider the business implications on cashflow, and the time and resource implications on payroll teams to fulfil this service. We shouldn’t forget that earned wage access or salary advances can only plug a relatively small and short-term gap in an employee’s finances. Those seeking larger sums of money for life’s big events could require income verification from their employer for finance, loans or mortgages. While a recession may lead to fewer mortgage applications, increased affordability checks could impact human resource and payroll teams. At Experian, we believe supporting the financial livelihood of employees is no longer just a ‘nice-to-have’, but a necessary business objective with tangible benefits. In an era of 24/7, digital consumer engagement and payments, payroll teams and technologies need to be ready to adapt to the future of payroll and the evolving challenges it may bring.
Experian’s recent acquisitions and our strategic direction over the next few years will enable us to support access to fairer finance for a greater number of UK employees, while offering significant benefits to employers and payroll providers.
We’re proud and excited to be working with the CIPP on the Future of Payroll Report for the first time and bringing income and employment verification and payroll solutions to the UK market.
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