China Banking Corp. (Chinabank) announced that it has partnered with financial technology company Paywatch to launch Earned Wage Access Plus (EWAP), a digital solution allowing employees to withdraw a portion of their earned salaries before their scheduled payday.
Platform Mechanics
The service enables eligible employees of Chinabank’s payroll partner companies to make multiple salary withdrawals within a payroll period through a mobile app. According to a statement from the lender, the accessed funds are instantly credited to the user’s Chinabank payroll account.
The companies stated that EWAP functions as a non-credit product rather than a traditional loan. Consequently, the platform does not require credit checks, charge interest rates, or result in debt accrual, as the withdrawn amounts are deducted directly from the employee’s next scheduled paycheck.
Addressing Payroll Inefficiencies
Chinabank noted that the platform targets a structural mismatch in the Philippine payroll system where bi-monthly salary schedules do not always align with the timing of day-to-day expenses or unexpected financial obligations. The bank stated that this mismatch has historically led to worker reliance on informal salary advances or high-interest short-term borrowing.
Domingo P. Dayro Jr., Chinabank Cash Management Services and Operations Group head, said the digital facility aims to provide alternative liquidity options to help employees manage their budgets. By automating the withdrawal process, the platform is also designed to remove the manual administrative burden of salary advances from corporate human resource teams.
Rowell del Fierro, Paywatch Philippines country manager, stated that providing employees with direct control over their earned finances has correlated with measurable improvements in workplace productivity and retention across the markets where the fintech firm operates.
Financial Performance
The product rollout occurred alongside the bank’s recent financial disclosures. Chinabank reported that its attributable net income rose by 4.3% to P6.78 billion in the first quarter of the year. (Read More: BDO, Chinabank, EastWest Waive InstaPay and PESONet Transfer Fees)
Following the announcement on Monday, shares of China Banking Corp. rose by five centavos or 0.09% to close at P56.35 each.
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