The CIPP, in partnership with Loughborough University, offers experienced managers the opportunity to gain a recognised university qualification in Strategic Leadership, with the benefits of part- time learning to fit around their schedule. This qualification will help organisations to retain and develop talent, build management and leadership capability and bring an extra dimension to existing professional development within their organisation. MSC IN STRATEGIC LEADERSHIP LOOKING TO MAKE A DIFFERENCE IN YOUR ORGANISATION?
TECHNOLOGY
Wages can be deposited into this account faster than standard payroll processing and transfer timeframes as the disbursement is done internally. A debit card can be issued on top of these employee deposit accounts for immediate spend access, increasing the funds and associated transactions handled by the fintech. Employers can also benefit from the payment infrastructure offered by fintechs, revolutionising how companies pay their employees through Employee financial well-being Adding banking access for employees at ‘point of pay’ enables improved budgeting, better savings habits and long-term financial health for workers. As consumers become smarter about their financial lives, they’d also become open to financial advising and goal setting. New partnerships are already emerging with financial advisers for coaching on investments, retirement and estate planning within fintech and multiple verticals — payroll can follow suit. There are other benefits too, for example, verification of employment and income data, which is shared with the fintech. Consent is provided by the employee, who is now familiar with the concept of granting authorisation to a third party to access the relevant personal financial data. Again, thanks to APIs, this makes for a seamless experience, removing the need for human resources their payment rails platform
or payroll departments to complete forms manually, in scenarios where a lender would approach the employer directly to request confirmation of certain details. Additionally, the data is submitted in the background, making this process quicker and much less intrusive where the employee is concerned. Therefore, verification of data should be seen as yet another form of employee financial wellness. Although earned wage access has been around for a while, other aspects of financial wellness are still being developed, and deployment of these products is still relatively low in the UK. This will change as increased partnerships between payroll and fintechs take hold. The benefits for employers Employers can also benefit from the payment infrastructure offered by fintechs, revolutionising how companies pay their employees through their payment rails platform. Payment rails are the infrastructures that carry money between a payer and a payee. They connect banks and financial institutions with one another and allow money to travel between them. In the United Kingdom, money can be transferred through the faster payments network. The benefit of this is the additional time added back to the payroll calendar because faster payments are instant, whereas the Bacs processing method takes 2-3 days. These payments rails also provide multi-currency processing and distribution channels, so offer huge benefits for global payroll operations, particularly in those countries where traditional payment methods are prone to delays. The fintech and payroll partnership is still relatively new, and there are many strategic opportunities available. It will be interesting to see the impact that this could have on the operational side of payroll so it’s definitely an area that’s worth watching. n
ENROL TODAY
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| Professional in Payroll, Pensions and Reward |
Issue 81 | June 2022
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