According to a recent study conducted by the World Bank (WB), digital disbursement of wages is beneficial for the employees.
As per WB, digital payment methods help improve employees’ ability to mitigate unanticipated financial shocks and increase savings.
Titled ‘Learning to navigate a new financial technology’, the study was conducted with a sample of 3,136 workers.
It may be mentioned here that digital disbursement of workers’ wages got a boost following Government’s announcement of stimulus packages as millions of workers, especially those employed in the country’s readymade garment sector, started receiving wages directly through their bank accounts or a mobile financial service (MFS).
Prior to the introduction of the new payroll system, introduced in June 2020, almost 90 per cent of the Bangladesh’s workforce, reportedly, received wages in cash.
The process was not only time consuming but difficult as well, keeping in mind the volume of disbursement that had to be made.
When it comes to adopting a digital payment method, the study found compelling evidence of learning-by-doing while underlining that workers develop greater trust in technology, learn to use the account without assistance and how to avoid common consumer financial risks as they interact with the account more frequently.
