Payday to Security: Building Workplace Financial Services that work for everyone

Most people who make the world's clothes and shoes are women. These days, the wage they earn is largely paid straight into an account. But earning money and having security are not the same thing. A medical emergency or a flood can wipe out months of savings, and a wage on its own offers little to fall back on. RISE has been working on that challenge, for and with the low-income workers who keep global garment and footwear supply chains moving, for the past ten years. 

Over that time, we have been supporting workers to smoothly manage everyday expenses and financial shocks, feel confident about their future, and make and act on economic decisions.

To this end, we've brought the garment, footwear, and textile sectors together with the financial sector. We have supported tens of thousands of workers to open accounts and gain more control over their own money. The proportion of workers saving every month after participating in RISE programs increased from 56% to 81%, while those who feel confident managing a financial emergency more than tripled. For many women, this has translated into more of a say in how their household's money is spent and saved, and a firmer voice in decisions that shape their families' futures.

These gains are well documented in our reports, from greater security and confidence in managing everyday expenses and planning for the future to stronger financial resilience. For instance, following her participation in the RISE Financial Health workplace program, factory workers Yuliana and her husband, Rudy, started planning the household budget together, which has helped them manage their housing loan repayments better and lowered their stress about managing their finances.  

We've also shown factories that a financially healthy workforce is more stable and productive. Suppliers have cut payroll administration costs by 50%, while digital payments provide greater efficiency and transparency. 

However, digitalizing wages was never our final goal. Alongside accounts, workers now have access to a range of financial products, from savings to remittances, yet access on its own doesn’t always mean long-term financial resilience.

Addressing this is the focus of our commitment to action at the Clinton Global Initiative. 

With funding from the Gates Foundation, we are working with the garment and financial sectors to build the business case for payroll-enabled financial products and services in the workplace that can strengthen both worker financial health and business performance.

Our work will:

• Turn evidence into practical guidance for employers, helping them identify responsible financial products and services that enable women and men to manage everyday expenses, cope with financial shocks, and build lasting financial resilience.
• Put the guidance into practice by integrating and testing it through RISE Financial Health and Foundations workplace programs.
• Take what works to scale, sharing lessons and solutions through our network of 40+ global brands and suppliers, as well as financial institutions and other stakeholders, to support the responsible adoption of financial products and services for more workers.

At CGI, Christine Svarer, RISE Executive Director, said: "Workers have payroll accounts, which in theory give them access to financial products. What makes the difference is whether women and men have the confidence and trust to use those products to save, plan, and weather what life throws at them. When workers can stack financial products and services that fit their lives, they gain real confidence about their financial futures, and that has the potential to reach millions of workers. We know how to do it, and we know we can't do it alone. That's why, as part of this commitment, we are inviting funders, global brands, suppliers, and providers to join us.”

For a worker, more financial stability means being able to plan ahead, absorb a shock, and provide for their family. That progress then reaches beyond the individual, strengthening households and whole communities. It's good for workers, good for the factories that employ them, and good for the financial providers reaching a market they've long overlooked.