From Independent Banker – January 29, 2018
Sutton Bank in Attica, Ohio, has served its community for 140 years. It may have been founded in 1878, but by adhering to its “old-fashioned innovation” motto, the security- and soundness-focused $450 million-asset community bank looks to the future by delivering top-notch customer service and working with fintech companies to bring new products and services to the market.
Case in point: With the help of an industry partner, Sutton has rolled out a smartphone app that allows business clients and their employees to access a portion of their already-earned pay before the end of a payroll period. It’s disruptive technology at its finest. “Payroll really hasn’t changed in decades in how it operates,” says Jeff Lewis, senior vice president for payment services at Sutton Bank. “This is a nice disruptor into that segment.”
Often, when employees request an early payroll payment, it’s to pay a bill or meet basic necessities. Employees who use this fintech service can then skip a visit to payday lenders, which charge hefty interest rates or fees, notes Lewis.
Employers who offer the payroll app also have an advantage over competitors who don’t. For example, the restaurant industry, especially franchises, can be “a market segment where it’s hard to get employees to come work for you,” Lewis says. However, if there are two similar businesses on the same street and only one offers the payroll app, the one that does has a better chance of attracting and retaining employees.