safe and financially beneficial way for employees to manage their credit and savings”
For the host company or organisation there are also significant benefits
Employees savers receive higher effective salaries from the higher savings rates they receive on their salaries and any surplus savings with their net salary increased by the interest earned
Employee borrowers have access to more flexible finance with low borrowing rates, an additional financial benefit to their net salaries
Protects employees from falling into financial difficulties from borrowing from payday lenders with high interest rates, fees and charges
Supports a collegiate culture and co-operation with fellow employees helping foster a more harmonious work environment in the knowledge employees are sharing in their collective financial advancement
Offers a comprehensive staff benefit at no direct cost to the host company or organisation
These benefits lead to higher rates of employee retention and provides evidence that the company is sensitive and proactive to the needs of it's employees, increasing employee good will towards the organisation
For the host company there are also significant financial benefits
Participating as a lender, allowing the host company to earn profits on available cash by saving with their employees
Commissions paid to the host on loan transactions representing a proportion of the interest charged against each loan
Cooperativa has been designed to reduce any additional processing requirements on behalf of the host company
Deductions are calculated and advised by the Cooperativa platform similar to deductions for gym memberships, season ticket loans and childcare payments
All payments are processed by the Cooperativa platform and deductions are made using the existing payroll infrastructure