myZoi and Deem Finance Introduce EWA Product to Enhance Financial Inclusion in the UAE – TechAfrica News

Strategic Partnership to Advance Financial Inclusion and Sustainable Development Goals

Introduction

A strategic partnership has been formed between myZoi and Deem Finance to launch an Earned Wage Access (EWA) product. This initiative is specifically designed to enhance the financial well-being of low-income and underbanked workers, directly aligning with several key United Nations Sustainable Development Goals (SDGs) by promoting economic stability and reducing inequality.

The Earned Wage Access (EWA) Initiative

The EWA solution enables eligible employees to withdraw a portion of their accrued salary prior to their scheduled payday, operating within defined governance controls. The core objective is to address short-term cash-flow challenges without extending new credit.

• Targets low-income, underbanked worker segments.
• Provides controlled, on-demand access to wages already earned.
• Addresses liquidity timing issues, reducing the need for high-cost borrowing.
• Delivered via the myZoi platform, with Deem Finance serving as the liquidity provider.

Contribution to Sustainable Development Goals (SDGs)

This partnership makes a direct and measurable impact on the following SDGs:

1. SDG 1: No Poverty: By providing a safety net against unexpected expenses, the EWA service helps prevent low-income workers from falling into debt cycles and poverty.
2. SDG 8: Decent Work and Economic Growth: The initiative promotes financial stability and reduces stress for employees, contributing to a healthier, more secure, and productive workforce, which is a cornerstone of decent work.
3. SDG 10: Reduced Inequalities: The product is exclusively designed for financially underserved populations, including new-to-country employees, thereby tackling financial inequality by providing equitable access to essential services.
4. SDG 17: Partnerships for the Goals: The collaboration between myZoi, Deem Finance, and the endorsement from institutions like Standard Chartered exemplifies a powerful multi-stakeholder partnership leveraging technology and finance to achieve sustainable development objectives.

Supporting Platform Features and Broader Impact

The myZoi platform’s impact is amplified through a suite of features designed to foster comprehensive financial inclusion and education.

• Inclusive Onboarding (SDG 10): A first-to-market Day-1 onboarding system allows new-to-country employees to activate an account upon arrival using their passport and Emirates Face Recognition (EFR).
• Financial Education (SDG 4): The multilingual “Money Tips” financial literacy program has generated over 33 million video views, providing practical guidance on financial planning to a network of over 350 corporate partners and their communities.
• Demonstrated User Engagement: The platform has achieved significant digital adoption rates exceeding 50% in its first year, with an 80% repeat usage rate, indicating sustained value for underbanked users.
• Comprehensive Financial Tools: The service offers competitive cross-border transfers and simple tools for salary management, empowering users to plan their finances effectively.

Conclusion

The myZoi and Deem Finance partnership establishes a commercially viable and socially transformative model for financial services. By integrating the EWA product with inclusive onboarding and extensive financial literacy programs, the initiative not only supports the UAE’s transition to a digital-first economy but also makes a significant contribution toward achieving global Sustainable Development Goals.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
  
  The article addresses SDG 1 by focusing on a financial product, Earned Wage Access (EWA), designed for low-income and underbanked workers. This service helps them manage “short-term cash-flow timing” and avoid “timing shocks,” which can be a critical factor in preventing them from falling into debt or poverty due to unexpected expenses.
• SDG 8: Decent Work and Economic Growth
  
  The initiative supports financial wellbeing for workers, which is a key component of decent work. By providing tools to manage salaries, enable financial planning, and offer access to earned wages, the platform contributes to a more stable and less stressful financial life for employees, which can enhance productivity and support sustained economic growth.
• SDG 10: Reduced Inequalities
  
  The article highlights that the EWA product is “exclusively designed for low-income workers” and aims to support “underbanked segments.” This directly tackles the inequality in access to financial services, promoting the economic inclusion of vulnerable populations who are often excluded from traditional banking systems.
• SDG 17: Partnerships for the Goals
  
  The entire initiative is built on a “strategic partnership with Deem Finance” and myZoi. The article also mentions the involvement of Standard Chartered UAE’s CEO, highlighting a multi-stakeholder collaboration between fintech companies and established financial institutions to achieve a common social and commercial goal.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.4 (under SDG 1): “By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to… financial services…”
  
  The myZoi platform directly contributes to this target by providing underbanked, low-income workers with access to a crucial financial service (EWA) that helps them manage their earned income.
• Target 8.10 (under SDG 8): “Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.”
  
  The partnership between myZoi and Deem Finance is a clear example of strengthening institutional capacity to expand financial services. They are creating and delivering a new product tailored to a segment of the population that has historically been underserved by traditional banking.
• Target 10.2 (under SDG 10): “By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… economic or other status.”
  
  The article’s focus on providing financial tools, literacy, and services specifically for the “underbanked workforce” and “low-income workers” is a direct effort to promote their economic inclusion and empower them with greater control over their finances.
• Target 17.17 (under SDG 17): “Encourage and promote effective public, public-private and civil society partnerships…”
  
  The collaboration between myZoi and Deem Finance, described as a “strategic partnership,” exemplifies a private-private partnership aimed at achieving both commercial viability and social transformation, directly aligning with the spirit of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicators for Financial Inclusion (Targets 1.4, 8.10, 10.2):
  • Digital Adoption Rate: The article states that myZoi “has recorded significant digital adoption rates exceeding 50% in the first year,” which measures the reach and acceptance of the financial service among the target population.
  • User Engagement/Repeat Usage: The mention of “repeat usage at 80%” indicates that the service provides sustained value and is being actively used, serving as a proxy for its effectiveness in promoting financial wellbeing.
  • Number of Corporate Partners: The platform’s financial literacy program has been shared across “a network of over 350 corporate partners,” which indicates the scale of the initiative’s reach to employers and their workforces.
• Indicators for Financial Literacy (related to empowerment in Target 10.2):
  • Content Reach: The “multilingual ‘Money Tips’ financial literacy program has generated more than 33 million video views.” This metric directly quantifies the reach and engagement of the educational component of the service.
• Indicators for Partnerships (Target 17.17):
  • Existence of Formal Partnerships: The article explicitly names the “strategic partnership with Deem Finance” and the involvement of “Standard Chartered UAE,” which serves as a qualitative indicator of successful multi-stakeholder collaboration.

SDGs, Targets, and Indicators Summary

Source: techafricanews.com