A new personal finance app that allows employees to access an interest-free portion of their income each month before payday has been launched after it received approval from the Central Bank.
The Azucko app, which is operated by Prima Finance, gives employees the flexibility based on hours they have already worked. However, the salary drawdown service does require employers to sign up.
The group said the service “helps eliminate the need for high-cost credit, such as credit cards, personal loans and overdraft fees should employees find themselves tight for cash or faced with an unexpected expense ahead of their next payday”.
Azucko operates by integrating with employers’ payroll or time and attendance systems, allowing workers to see what they’ve earned and how much they can draw down during each month.
Azucko managing director Brian Leslie said: “Increasingly, we are concerned about our physical and mental financial wellbeing, but financial stress is also common and is having a serious impact on 62 per cent of all employees today.
“Azucko allows employers to support their employees to better manage and understand their finances. Uniquely, it allows employees to draw down a portion of their income they have already earned but have not yet been paid by their employer.
‘Greater control’
“This gives employees greater control and flexibility over when they get paid and how they manage their money and deal with sudden and unexpected expenses.
“From an employer perspective, when staff feel more secure in their finances, they’re likely to be more productive and motivated, meaning everybody benefits.”
While employers must sign up for their staff to avail of the access service, they can “do so easily”, with no enrolment costs and no disruption to normal payroll processes.
The app is also designed to help users gain a clearer picture of their future finances, income and expenses.
This includes connecting all bank accounts within the app, tracking spending habits, paying monthly bills, starting a savings plan, identifying monthly savings on utility bills and tracking financial scores.
Users can also assess their borrowing capacity for a personal or car loan, or a mortgage.
“Now more than ever, it’s vital that people have full access to their financial information so that they are empowered to take control of their finances,” Mr Leslie said.
