Reminding The Danger Of Illegal Loans, Start Up Wagely Offers Financial Management Resilience Services

Illustration. (Doc. Between)

JAKARTA - Many people in Indonesia are still trapped in online loans (loans). One of the reasons is that these illegal borrowers make it easy to complete the prerequisites for getting a loan, especially when the borrower needs emergency funds.

Many of the borrowers, namely employees and workers, are trapped in debt because they are pressed for demands for meeting emergency needs. This is also coupled with the lack of education regarding the dangers of illegal borrowing, making it easy for them to be trapped in a debt cycle, which in the end causes their salary to only run out and only enough to pay their debts.

The dangers of illegal lending that are not under the supervision of the OJK include high interest rates, large administrative costs, short tenors, personal data that is prone to spread, terror and intimidation by debt collectors who do not have permits. A person with excessive debt can be affected by his mental and physical health due to financial stress.

This can have an impact on performance in the workplace which often leads to decisions to commit crimes and fraud in the workplace.

Seeing this phenomenon, a startup company in the financial health sector Wagely provides Earned-Wage Access (EWA) services. This service allows employees and workers to have the resilience in managing their finances through access to salaries whenever needed, without interest and according to financial sharia.

"Especially in the current pandemic situation and economic recovery, many emergency needs must be met with instant funds and through the Wagely application, employees can withdraw the salary that has been generated safely and responsibly. Wagely is here as an effective solution for employees and has been proven to help 53 percent Those whose companies have collaborated with Wagely can avoid moneylenders and illegal online loans,” said Chief Executive Officer Tobias Fischer, Wednesday, February 9.

Tobias also added that in today's digital technology era, digital transformation is a way for companies to interact with employees, including providing digital financial health services.

"Wagely is the right partner for a long-term solution because we provide the opportunity for them to see their daily income, access to the salary that has been generated and the ability to plan ahead. This is proven by reducing employee turnover, increasing retention and maintaining cash business flow," said Tobias.

A startup company in the financial health sector that is built and large in Indonesia, Wagely has successfully collaborated with hundreds of businesses and businesses covering various industrial sectors including Adaro Energy, Medco Power Indonesia, British American Tobacco, Ranch Market, Century Pharma to name a few.

In January 2022, Wagely has entered into a strategic partnership with HKI (Himpunan Kawasan Industri), which aims to be a pioneer for financial health solutions for millions of low-middle-income employees in the IPR network.

The recent expansion into Bangladesh has also brought together 50,000 employees from the largest clothing manufacturers in the vicinity, and cemented Wagely's position as a leader in financial health through EWA in Southeast Asia. Through this commitment, Wagely will build a real financial health ecosystem in Southeast Asia, as well as strengthen business resilience and employee well-being.