Revolutionizing Financial Wellness
More articles of the Belgium Fintech Magazine
READ ALL ARTICLES
Want an exclusive paper copy?
Want to be the next expert to inspire our audience?
MORE INFO HERE
Discover one of the articles from our brand new magazine, the Belgium Fintech Magazine - #1 Dec 23
Revolutionizing Financial Wellness: scudi's Bold Move in Employee Salary Advances
An interview with Rie Sordo, CEO and Founder scudi
In the fast-paced world of fintech, where innovation is the currency and financial well-being is the goal, scudi emerges as a disruptive force, addressing a fundamental challenge faced by a significant portion of the workforce. With a unique value proposition that empowers employees and transforms the traditional payroll landscape, scudi is making its mark in the fintech startup ecosystem in Belgium.
Picture this: halfway through the month, an unforeseen expense depletes your reserves, leaving you with zero liquidity to address the sudden need. What are your options? Borrowing from friends or family carries social stigma and potential social costs. Going to the bank may take too long for approval. Seeking a salary advance involves justifying your need and navigating complex internal processes, making it impractical.
This scenario is not far-fetched. According to Rie Sordo, CEO and Founder of Belgian Fintech scudi, a large segment of the population, up to 80%, lack savings. With 60% unable to navigate unexpected costs without going into immediate debt. This is more pervasive amongst younger generations.
Thanks to embedded finance, a trend poised to generate an additional 7 trillion USD in new business opportunities, non-financial organizations can now alleviate this employee pain point. Instead of seeking short-term financing from traditional providers, employees facing such situations can now turn to their employers. scudi facilitates this by offering a user-friendly mobile app, enabling instant SEPA payments and providing employees access to a portion of their already earned salary, thereby offering crucial additional liquidity.
Through a clever Software as a Service (SaaS) solution for corporates that seamlessly integrates to an employer’s payroll system, scudi’s platform can offer a lifeline, bridging the gap between paychecks, without incurring any costs for employees. This not only averts immediate debt but also empowers individuals to take more control of their finances and explore more sustainable financial solutions. It also eliminates the need for cumbersome forms and explanations, relying on an algorithm that analyzes data from employers to make informed decisions.
A Win-Win for Employers and Employees
With the firm belief that financial well-being is not a luxury but a fundamental right, scudi aims to affect a transformative impact on the workforce. Sordo asserts that, with implications reaching far beyond the human resource department, employers report lower cost associated with attracting, training, and replacing talent contributing to a healthier bottom line. Furthermore, research indicates a substantial increase in retention rates, motivation, and overall performance among employees.
scudi’s business model is as innovative as its service. Traditionally, borrowers would face some level of interest, however the company has found a way to deliver value to both employers and employees, making the service entirely free for employees.
Employers subscribe to the SaaS solution under a monthly subscription, with the cost per employee averaging out the price of an espresso. The mobile app usage and withdrawals remain free for the the employee, emphasizing scudi’s commitment to financial accessibility.
Future Horizons
scudi envisions expanding its services beyond salary advances, providing financial support and information based on behavioral analysis. The algorithm identifies vulnerable individuals and directs them to government support links, laying the foundation for a comprehensive financial wellness platform.
The company plans to collaborate with with Payment Service Providers (PSPs) Electronic Money Institutions (EMIs) and other partners to embed additional services, potentially requiring licenses based on regional regulations.
Examples like scudi go to show that as financial services are increasingly being provided outside the realm of finance, new and compelling use cases will emerge to tackle more of the everyday financial problems and challenges faced by customers everywhere. With a laser-focused approach on empowering employees, transforming employer-employee dynamics, and utilizing technology for social good, companies like scudi are not just a disruptor but a beacon of financial empowerment in Belgium’s startup ecosystem.
By Chris Crespo / Nordic Fintech Magazine
Published and Distributed by FinTech Belgium asbl
Contact: Alessandra Guion - CEO