Salary advancement requests? Resignations so that employees can access their pension funds?
These are sure-fire signs that your employees are in financial trouble. By the time distress translates into these behaviours, company performance is already suffering from decreased productivity, a rise in absenteeism, increased safety incidents and low levels of employee engagement.
Bayport Money Solutions is a programme that offers employees a way out of financial distress and into financial wellness.
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A financial wellness programme customised to meet your company’s needs:
Periodic employee financial status reports
The strategic benefits of a financial wellness programme
Case study 1: Motor industry employer
A significant portion of the employees Bayport Money Solution helped, were in the high to very high-risk bracket. They would not normally qualify for loan products at reputable credit providers. Driven to mashonisas, their financial woes would only have multiplied.
55% of employees credit scores improved following Bayport money Solutions' interventions.
Employees in arrears:Pre bayport:
Since January 2019, Bayport disbursed almost R8 million in preferentially rated loans, assisting almost 160 employees. Employees saved R2,1 million in repayments due to the reduced rate.
Case study 2: Mining industry employer
The number of employees with a credit record increased over the programme duration, indicating that more employees are dealing with registered and legal lenders, and fewer with informal lenders.
Thanks to the effort of coaches, former over-indebted employees' credit scores and debt-to-income ratios have improved significantly.
The number of employees with judgements has reduced by over 40% over the last two years, significantly more than the mining industry or South Africa as a whole.
The number of employees with defaults has decreased by 9% over the last two years.
|Portion of net income used to pay off debt||Between 0 and 40%||Between 40 and 80%||Between 80 and 100%||More than 100%|
|Jun 2016||41% of employees||23% of employees||5% of employees||12% of employees|
|Jun 2018||53% of employees||27% of employees||3% of employees||3% of employees|
Jacques: branch manager
Financial Status: over-indebted
"When I was demoted due to a company restructuring, my salary was cut by 35%. Soon I was R300 000 in debt and my children could no longer go to school because we were behind on school fees. Bayport removed my debts that had been prescribed, negotiated settlement discounts and granted me a consolidation loan. I use Bayport’s budget tool and the monthly conversations with my money coach to keep on top of my finances. My credit record is clean, I can function at work, and I am finally in control of my life again!"
Mary-Anne: human capital manager
Financial Status: distressed
"I had more than R400 000 debt and was behind on all my loans and accounts. Bayport negotiated 30% settlement discounts on my behalf, gave me a loan to pay off my four largest debts, unlocked R4 000 in monthly cash flow, and taught me how to manage my finances. My life is changed! My credit score is improving, I will retire debt free, and I’m no longer scared to answer my phone."
Mandla: factory worker
Financial Status: in good standing
"When my house got damaged in the Umlazi floods, I had R94 000 in debts, but my credit score was good because I never missed a payment. Bayport consolidated my debts and negotiated settlement discounts of more than R49 000. They also gave me a R25 000 loan at a discounted interest rate to fix my house. My house is fixed and I have more cash every month because of lower instalments."
Philip: production team leader
Financial Status: over-indebted
"I was in big trouble. I couldn’t pay maintenance for my two children, I lived on expensive payday loans and the bank wanted to take my car back. Bayport consolidated all my loans and negotiated with my creditors. Now my instalment is R6 000 a month instead of R11 000. I manage my debt and I have some money in my pocket. Most importantly, I can now be a father to my kids."
Firstly, the fact that we engage with high-risk persons through their employer, provides us with a measure of protection and lowers the risk we take on.
Secondly, we know that our programme has enormous impact and can move people fairly quickly out of the high-risk zone. Therefore, in most cases, our risk exposure is relatively short lived.
Thirdly, our mission is to put financial wellness and responsible credit within reach of as many people as possible. We want to do everything we can to give people options other than mashonisas.
All participating employees have access to: