Businesses Benefit from New Employee Loan Solution and Financial Literacy Resources

A new employee loan solution, complete with financial literacy resources to benefit employees and employers alike, has been launched in Papua New Guinea.  Savi Moni, an online personal loan service provides employers with ethical, responsible, convenient and low-cost loan solutions for their employees.  A basic premise underpinning the Savi Moni responsible lending model is that financial literacy helps alleviate employee financial stress which in turn enhances worker productivity and therefore helps drive business success.

Financial Stress in PNG

The 2020 Price Waterhouse Financial Wellness survey revealed ‘money worries’ to be the biggest cause of employee stress and that stress is a major distraction at work (and therefore, a considerable impediment to productivity).  It’s estimated that 80 per cent of employees in PNG suffer from financial stress.  This figure is potentially higher given an ongoing economic downturn which has been compounded by COVID-19, resulting in increased business closures, job losses and job insecurity.  

Additional cultural factors, such as expectations around bride price and haus krais can further exacerbate the financial stress of PNG employees.  Additionally, a lack of financial literacy also contributes to the problem. contributing to financial stress in PNG is a lack of financial literacy.  Many people, irrespective of education level or job status will admit to living from pay cheque to pay cheque, relying on short term credit to make ends meet (including loans from pay day street lenders at extremely high rates and being in a ‘cycle of debt’ that they do not know how to break free from.  

Businesses Benefit by Reducing Financial Stress in PNG

Recent studies by PWC, Salary Finance, AMP and Metlife have shown that a real business case exists for businesses to help reduce the financial stress of their employees. Employee productivity, attendance, engagement and retention are all impacted by financial stress. 

• Research shows financially stressed individuals take an extra 4 days of sick leave a year and lose upwards of 7 work hours a week in productivity. This is not specific to a person’s job or demographic status and is proven to transcend class or economic background.  

• Current estimates indicate 13-19 per cent of a company’s payroll costs are WASTED each year due to the financial stress being suffered by their employees.

The diagram below demonstrates the business benefits of reducing employee financial stress and helping them (via responsible personal lending solutions and financial literacy) to enjoy financial wellness.

A responsible approach that delivers a win-win to employers and employees alike.

The Savi Moni employee loan is a responsible personal loan product offered at a market leading rate, delivered through a customer friendly, convenient and transparent digital platform with repayments made direct via client companies’ payrolls.

In order for employees to access a Savi Moni personal loan and financial literacy resources, the employing business must first sign up as a Loan Partner.  Applications and approvals are managed via a streamlined and state of the art Loan Management System – and accessed by the employer’s nominated staff.  This results in employees never having to take time off work to visit a shop front.  Using technology to keep overheads low, means that savings can be passed on in the form of lower interest rates. 

Financial Literacy Education in PNG

The Savi Moni personal loan solution was developed to help people save time and money, take control of their finances and enjoy financial wellbeing.  “We want to give employers and employees a beneficial staff lending solution that incorporates financial literacy to help avoid future financial stress” says Founder, Nick Keane.  Having been born and bred in PNG, and with several in-country business experiences, Nick understands the problems that staff loans cause for businesses, the financial stress generated for many PNG households and is passionate about creating an improved sustainable solution.

Financial literacy education is a central component of the Savi Moni loan product, with formal ‘family money management’ workplace training available to interested employers.  In addition, it offers a range of free resources and tools for both employers and employees to help improve financial literacy and reduce financial stress.

Innovative and ethical personal lending being introduced by Savi Moni has much to offer PNG’s employers and their employees.  Salary linked loans with in-built financial literacy training, responsible lending, low rates and no fees combine to combat employee financial stress, which in turn rewards employers with greater productivity, reduced absenteeism and increased employee retention.  New models of financial offerings such as these are welcome additions to employee benefits packages and are all part of being a socially responsible employer as well as an employer of choice.

Find out more at www.savimonipng.com or get in touch hello@savimonipng.com

Images & Captions

Caption:  Savi Moni is passionate about tackling employee financial stress.  Cheaper loans and financial literacy training can also help employees break the cycle of debt and eliminate financial stress.  It’s a low cost but life changing gift any business can give its employees.

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