Chief of Chime Enterprise Jason Lee said that Chime Workplace allows employers to meet employees where they currently are while helping them get to where they want to go. The financial wellness solution comes at no cost to employers and employees.
Lee said that Chime Workplace is the product of conversations with dozens of companies that recognize the importance of financially healthy employees; when the workers are happy, it’s good for business. In 2015, 41% of companies recognized they have a role to play in their employees’ financial health; that has grown to 97% today.
“Over the last 10 years, we’ve seen a massive understanding, either tacitly or explicitly, that investing in employees is a good thing; making sure that they’re financially healthy is a good thing; making sure that they can pay their bills, that they can save and get to the next level,” Lee said. “All of those things are good things, and the employer wants to be at the forefront of that.”
Where many workplace solutions fall short
However, there are obstacles. Lee said many workplace solutions only benefit one type of employee and their circumstances, to the exclusion of all others. Those employees are in many different financial phases – some can pay their bills while others struggle. Many want to build credit, while others are thinking about retirement.
That’s why adoption rates for many programs can be in the single digits. Employers are not going to pursue different solutions for each employee type.
Better to make the workplace a hub for financial well-being by offering a suite of tools, including early wage access, high-yield savings, and credit-building resources. Combine that with aggregated insights into workforce financial health, such as savings growth and credit improvement, and an optional rewards plan where people can earn “salt” points for every hour worked, and you’re attracting more folks.
Chime Workplace’s four components
Capital Management helps employees manage their everyday finances with tools like EWA. Improved outcomes include better cash flow management and fewer late fees and overdrafts
Capital Growth includes automated savings features and high-yield savings to help employees save for the future. Additional savings can be accrued through purchase roundups.
Capital Expansion helps employees build credit histories through everyday purchases and on-time payments. The average person sees a 30-point bump in their credit score.
Employee Rewards is a modern employee reward and loyalty program that Salt Labs designed before its acquisition by Chime. Employers fund reward purchases on behalf of their employees.
Lee said the four names convey aspiration. While the program is designed to meet people in the present, it also recognizes that many envision a better future.
“These are terms that we’ve reserved historically for higher-income folks,” Lee said. “But guess what? A lot of our folks would like to be in that bracket. We are all about unlocking that progress and that journey to get to that next level.”
Lee returns to the various circumstances workers may find themselves in, whether a regular occurrence or a unique circumstance. Someone may need their pay two days early or a fee-free overdraft. Chime Workplace offers many tools to help people manage their daily finances.
Chime+ debuted on March 31
On March 31, Chime also introduced Chime+, a premium membership tier with new features in a redesigned app. It is for members with qualifying direct deposits.
Features begin with MyPay, which provides early pay access. SpotMe offers fee-free overdraft coverage of up to $200 for eligible users.
New is a 3.75% APY savings account interest rate. Lee said many other employee savings programs pay no rate.
Retailer cash-back offers come through Chime Deals, while personalized FICO score tracking with credit-building tips is also included.