With the growth of digital finance tools, a group of startups is looking to reach those who may be left behind, namely hourly workers. Among them, Minneapolis-based Branch is working with employers to offer such employees digital money management tools and a portion of a worker’s paycheck in advance. It’s also considering other products like credit and savings.
The challenge that Branch’s target customers face, as compared to salaried workers, is unpredictable income flows due to inconsistent hours, Atif Siddiqi, co-founder and CEO, told Bank Innovation. “These employees are underserved by traditional financial institutions or even unbanked,” he said. “The alternative to a service like Branch is a payday loan or late fees. We’re providing them with a viable alternative that’s fair and transparent.”