[LAB] HR Banking at the Human Resources Solutions
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Sopra HR Lab presented its innovations in HR Banking at the Human Resources Solutions trade fair in September 2021. HR Banking leverages the possibilities of Open Banking (which opens banking systems through the use of APIs) to improve or provide new HR services and act as an intermediary between banks and payroll systems.
FEWA (Flexible Earned Wage Access) is an on-demand pay solution. This new HR practice is already prevalent in Great Britain and Spain and allows the employer to interact between employees and banks. HR can thus offer a service with a high social impact by responding to requests from people with financial problems.
HR can thus help employees avoid paying overdraft fees. Banking applications that perform authentication and HR applications that request consent in compliance with GDPR, have helped to improve HR self-service features. Employees with unforeseen expenses can now easily request advances on their salary. Instant payment can also be activated for pay advances or business expenses reimbursed almost in real time. Open Banking also allows you to change the IBAN number easily in just a few clicks without having to enter any data or provide any documents and in less time.
In this uncertain post-Covid period, companies are also considering more flexibility. Employee hire/termination flows can be optimized through seamless interactions between payroll and banking systems. Through such agility and by focusing on the employees’ wellbeing, HR Banking is improving the employer brand and helping companies attract talent.