Financial wellbeing fintech Wagestream has partnered with fixed income micro-savings platform Blossom to offer employees a way to grow their savings by giving them access to the Blossom Fund which targets three percent per annum return on investments.
What are the terms of the partnership?
The 1 million global employees of Wagestream’s business customers will have the opportunity to gain access to the Blossom Fund as an embedded savings option within the Wagestream app, with the investment minimum to invest in the Blossom Fund being $1.
Blossom’s micro-investing platform offers access via the Blossom Fund to a professionally managed portfolio of investment grade fixed income products aiming to earn higher returns.
What does Blossom bring to Wagestream’s portfolio?
The Blossom Fund prioritises ethical investments and excludes investments in coal, oil, gas and more, to service the growing trend towards investments that do no harm and create good in the world. The Wagestream platform allows workers to track their earnings in real-time and instantly access their earned wages, and boasts well-known Australian brands as clients including Hungry Jack’s, Accor, JD Sports, BPay, Freedom, and Pizza Hut.
Research conducted by Wagestream globally found employers who offer Wagestream’s financial wellbeing program were able to fill job vacancies 27% faster and reduce attrition by 16%, further validating the attraction of financial wellbeing programs to employees.
What are the executives’ thoughts on the partnership?
Wagestream Australia’s Chief Executive Officer Josh Vernon said, “Wagestream is a vital enabler of financial wellbeing, and saving is a critical step towards being more financially secure. Many young wage earners face creeping inflation and rising costs of basic living expenses.”
Josh Vernon also went ahead to say, “With interest rates still at historic lows, and banks not efficiently passing on interest rate rises to savers, achieving lower-risk returns has never been harder. Young people are also now bombarded with buy now, pay later offers which create additional behaviour barriers to saving. The ability to grow savings faster through a Blossom account that targets a 3% per annum return is exciting in this environment.”
Blossom co-founder Gaby Rosenberg said, “We share similar values as Wagestream, as well as a common goal of helping to improve our customers’ financial wellbeing. The core to financial wellbeing is the ability to cover an unexpected financial shock through your savings.”
“We believe financial wellbeing is one of the biggest stress points for many young employees. Giving these employees access to a solution where they can create a savings goal – and earn a return on their savings – will help to tackle this problem among young workers.”
Hungry Jack’s Chief People Officer Jenny McKie said, “These days, employees are looking for more than just a pay cheque. They want benefits that make a real difference to their daily lives and make their lives easier in general. That’s why we work with Wagestream and are excited about the partnership with Blossom.” Wagestream recently closed a AU$236 million Series C funding round, believed to be the largest ever raised for a social impact fintech company.
Wagestream and Blossom describe themselves as mission-led fintechs determined to improve financial wellbeing by giving young people access to fair financial services. In line with the expectations of millennials and generation z, Wagestream Australia and BlossomApp also have a broader social focus: for every Blossom account opened, a tree is planted in a bushfire affected region of Australia. To date more than 1,800 trees have been planted.