China Banking Corp. (Chinabank) has launched a new service, Earned Wage Access Plus (EWAP), in collaboration with fintech company Paywatch. This innovative solution allows employees to withdraw a portion of their salaries before payday.
Revolutionizing Salary Withdrawals
The EWAP service enables eligible employees from Chinabank's payroll partner companies to make multiple withdrawals during each payroll period via a user-friendly mobile app. Funds accessed through this service are instantly credited to the user’s Chinabank payroll account.
This facility aims to provide alternative liquidity options to help employees manage their budgets.
Domingo P. Dayro Jr., Chinabank Cash Management Services and Operations Group Head
Unlike traditional loans, EWAP is structured as a non-credit product. It does not require credit checks or incur interest, as the amounts withdrawn are directly deducted from the next paycheck.
- No interest or credit checks involved
- Instant transfers to payroll accounts
- Targets payroll timing mismatches
Chinabank's initiative seeks to address the common issue in the Philippines where bi-monthly salary schedules do not align with the timing of everyday expenses. This has often forced workers to rely on high-interest loans or informal salary advances.
According to Rowell del Fierro, Paywatch Philippines country manager, empowering employees with direct access to their earned wages has led to improved productivity and retention rates in other markets.
This rollout comes as Chinabank reported a 4.3% increase in its net income for the first quarter, reaching P6.78 billion. Following the announcement, shares of Chinabank rose by 0.09% to close at P56.35.