Branch launches free checking account and debit card for hourly workers
Mobile-linking platform Branch has partnered with Mastercard and Evolve Bank & Trust to launch its new financial wellness tools, which offer a zero-fee digital checking account and debit card for hourly workers.
In a bid to increase financial stability, Branch will become the first early-wage-access technology to offer a portion of US worker’s earned wages ahead of their paycheck for free.
Depositing and receiving money won’t incur any extra fees and only a minimum balance is required to use it. These features add to the already-installed budgeting and additional shift-finding tools.
“We’ve seen that once an hourly employee joins the workforce, their employer is their first entry into the financial system,” says Branch’s CEO Atif Siddiqi. “Most traditional financial services actually make it more challenging for hourly workers to balance their finances, whether it’s expensive overdraft fees or minimum balance requirements.”
With the income volatility which comes with hourly rates, Branch want to workers with “a strong start on their financial journey and offer services that help them improve their financial wellness and save”.
Branch works with employers to save on turnover, overtime and paper check costs, which the fintech estimates can cost employers up to $2-$4 per check.
Fellow partner Evolve says it recognises “the void Branch is filling by offering this new debit card”, highlighting the need to make well-informed financial services available to underserved segments of the workforce.