Let’s think about those moments when technology made our life simpler, easier and led to an increase in productivity. Similarly, think about another situation when technology wasn’t available making it impossible for you to get things done. One may come across many such instances.
Technology is changing the way we live. Even though, we say that money makes the world go round, it is technology that lies at the heart of it. Similarly, for the financial services industry, it is technology that runs the engine giving rise to a new domain, FinTech is a blend of technology into financial services.
Financial Technology is an industry that consists of companies that use technology and innovation to compete with the financial service organizations and intermediaries that provide financial services. Similarly, we (Worcash) are competing with the loan industry with the focus on making life easier. In this regard, we are aiming for a two step solution. The first step is to encourage users to embrace technology. And, the second step is to provide emergency cash to responsible workforce.
According to Community Financial Services Association of America, Industry analysts estimate 20,600 payday advance locations across the United States extend about $38.5 billion in short-term credit to millions of working Americans in 19 million households who experience cash flow shortfalls.
With payday lenders available in such large numbers, borrowers visit the payday lenders store and secure a small loan amount with payment due in full at the borrower’s next paycheck. On the date of maturity, the borrower returns to the store to repay the loan amount, if in case the borrower does not show up, the lender redeems the check.
We are a FinTech Startup aiming to make your life simpler and easier by offering approx 10% APR. We offer a platform that provides emergency cash to responsible workforce by offering borrowers the access to short-term funds at a lower rate of interest including other benefits. In addition to this, we sync with your employers to ensure hassle free repayments by deducting directly from your salary.
The deductions from salary go through a formal procedure whereby one signs a voluntary wage assignment. It is an act where you agree to let us deduct the loan amount from your paycheck. However, you can choose to stop the wage assignment at any time without providing any reason. It is mandatory for you to notify us in writing that you are canceling the wage assignment.
With the voluntary wage assignment contract, stressing over going to the payday store to repay the loan is no longer your responsibility. We are committed to making sure that a financial emergency is no longer an emergency.
For many years, US citizens have resorted to either credit cards or payday loans for paying bills, household expenses etc. Unfortunately, 68M + Americans do not even qualify for a credit card. Hence, their only option is to borrow money from Payday lenders at 391% annual rate of interest which has to be repaid as soon as you receive your next wage. But, due to high rate of interest you end up paying double the amount and end up losing a major part of your wage.
If we go into further calculation, suppose you borrow 100$ from a payday lender at an annual rate of interest of 391% for a period of five months.. The rate of interest for five months would be 162% approx ( 32% for one month; 32*5= 162%). Hence, after your term is over, you end up paying the lender a sum of 262$ which is double the principal amount. Our attempt is to get you out of this loop and into the path of savings.
We predict that when employees get cash at a lower rate of interest, the employer will enjoy higher retention, lower absenteeism and employees will be willing to put in extra hours. A possibility that we are creating by providing loans at a lower rate of interest which will reduce the stress level and start reflecting as an increase in efficiency level at work. The reasons for increase in efficiency are:
- The rate of interest is low as compared to payday loans.
- There is an automatic deduction of the loan from your salary.
You will not need to go for the second best option when the best is right in front of you on your smartphone. That said, it is a step to empower the loan industry. Given that the industry is huge and has been operating at a very high rate of interest. For more information, get in touch with our tech agnostic team today.