The global market of fintech is predicted to reach around $200 million by 2024. Today, fintech plays an essential role in many industries, and “payroll fintech” is one of them.
Payroll fintech innovation is a new evolution for the human resource industry. The payroll solution will lower spending by making the payroll tasks easier for the employees and yielding many benefits to the industry.
Let’s take a closer look at payroll fintech and its benefits.
What Is Payroll Fintech?
Payroll-related tasks are not as easy as they seem. It takes a lot of effort to provide employees with their monthly payroll while maintaining the government laws and regulations, managing all types of tax deductions, and handling thousands of employees from the smallest vendors to the top management.
Earlier, people had to wait for the final paycheck to arrive at the finance department and for the salary to be deposited into their bank accounts. But now, payroll fintech, along with blockchain technology integration, provides employees with automatic payment of their wages with on-demand paychecks and various other benefits that the employees and HR industry can enjoy.
Let’s now look at some of the biggest challenges that enterprises face due to the traditional payroll method.
4 Biggest Challenges of Traditional Payroll Method
1 – Attendance and Leave Management
Employees punch their thumbs on the scanner during entry and exit or sign the register to keep track of their presenteeism and calculate their incentive using traditional methods. They submit their leave application requests in paper form, which takes a long time to be reviewed and approved by the manager. All the above procedure requires a significant amount of time, effort, and risk of error.
2 – Handling Remote Work
It has become nearly impossible to manage payroll and attendance remotely. With staff working remotely, there is no entry and exit screening, and no proof of leave, and the onboarding and outboard processes have become difficult to control. There’s a demand for a single, simplified system that can handle attendance, payroll, leave, verification, and other tasks.
3 – The Demand for High Flexibility
Today, most industries require greater flexibility because of COVID-19. Many organizations have modified their timings, changed their work style, and shortened their work shifts, resulting in downsizing and more day-offs. Thereby leaving a great impact on payrolls. Many companies have adopted remote working, which necessitates coordination because people operate from different places. With the HR industry working with traditional methods, the challenges keep on rising.
4 – Changing Policies
The payroll industries mostly face problems because of the constantly changing government and business policies. The HR departments are required to stay updated with the new and old company and government policies and inform the same to every employee.
Payroll Fintech Solutions and Benefits
With businesses transitioning digitally, the demand for fintech solutions is also increasing.
Here are a few payroll fintech approaches and reasons why payroll fintech solutions can be beneficial to your company and the HR market.
Instant/Real-time Payments –
Payroll fintech integrated with blockchain technology is providing customers with an improved experience and fast transactions. The technology is making it easier for customers to access or track their transactions, budget, and spend accordingly. Payroll fintech also allows employees to check their payroll anytime instead of waiting for the end of the month.
Crypto Payroll
With the growing trend of cryptocurrency, many new startups are now introducing payroll fintech apps integrated with crypto payments. It provides high-level security, opportunities, and different crypto choices.
Payroll Fintech for Credit –
People can also use payroll fintech for credit purposes. It provides a better credit score of your wage, and assets and is a reliable source for creditIt optimizes the financial picture of the user, thereby helping banks to identify and provide suitable interest and loans.
Salary Advance –
Salary in advance allows employees to take a month’s salary in advance without having to worry about loans or interests. It improves the employee’s financial stability while also keeping him or her happy and motivated. With this payroll solution, the gap between HR and accounting is eliminated and employees do not have to run to the bank for loans.
On-demand Salary –
Businesses are now collaborating with FinTech and the HR industry to provide easy access to payroll to employees. With the help of cloud-based money movement solutions, employees can be offered on-demand income.
Conclusion
Fintech payroll solutions help employees satisfy their needs while also building a strong relationship between the company and its employees.
If you’re looking for information on how to create a payroll fintech application for your company then you have come to the right place.
Jellyfish Technologies is one of the leading fintech service providers. We work in all the major technologies such as Java, .Net, PHP, NodeJs, Grails, Python, JavaScript, Android, Angular, React, Ionic and, iOS.
Let us help you make your payroll operations simpler with our Fintech payroll solutions.
