If you were to score 100 points in basketball, that would be quite a high scoring output, and generally seen as a good thing (unless your competitor scores more). But if you were to score 100 in golf, now that would be horrible because your score reflects the number of shots it takes you to close a hole. The less shots the better in golf. The point is this: it’s not so much about the number of your score but about what the score represents depending on the game your playing.
Many of the credit scoring systems were not developed for today’s emerging market. A credit score that was developed for another time, another condition, and another market is what is used to score credit in emerging markets. And then we wonder why most people in emerging markets don’t have access to credit cards and still go to loan sharks. Of course! He or she is scored for another game! We are expecting basketball scores when they’re playing football.
Just as we (Bridge) believe that traditional credit scoring does not work in the emerging market game, traditional materialistic, short-term gains driven, and purely financial scores are the wrong scores for helping an organization serve the underbanked. I don’t know how many times we have been questioned for “leaving money on the table” by aggressively dropping our interest rates. We do this because we are clear about our game: provide Access to the underbanked, and we are clear about our score: the number of people who have reached Financial Escape Velocity. Profitability, sustainability, and efficiency are important to us, but only because it allows us to beat those who would insist on keeping the poor grounded.
Let me end this post with two questions we hope everyone will ask themselves:
What am I doing to achieve Financial Escape Velocity?
How am I helping the people I care about achieve Financial Velocity?
I really dislike it when people compare Bridge Access to other loan companies.
I dislike it because “loan company” fails to capture what we do, how we do things, and why we do things.
Yes, we do offer loans, with some of the lowest monthly interest in fact, but that is just part of the full value we offer our customers. What we really provide is Access.
Access to what?
Financial Escape Velocity.
In physics, escape velocity is the minimum speed needed for a free object gravitational influence of amassive body.
At that speed, the object is able to zoom to escape from the off into space, no longer hindered by the forces that keep other objects grounded. Similarly, our low cost loans are about removing the gravitational influence of high interest rates on our finances. Our auto deductions are about removing the gravitational influence of our lack of discipline as well. Our low cost insurance removes the gravitational influence of life’s risks. And our low cost savings and investments remove the gravitational influence of lack and slow financial growth. To put it simpler, Bridge Access removes the forces that keep the finances of millions people grounded.
The reason why the rich get richer is because they’re beyond escape velocity. Financial Physics, such as the benefit of compounding interest work in their favor. The poor, those who haven’t escaped, suffer from the same forces that help the rich get richer, such as compounding interest, but this time to their detriment.
Picture this: A 43 year old man, who used to spend P2000.00 on interest monthly, on a P10,000.00 loan, and he’s most likely earning P12,500 in pre-tax income. With Bridge Access, he will only be paying P200 a month in interest. P200! Even more, he is incentivized (by even lower interest rates) to flip some of his interest savings into our low cost savings, insurance, and investment products, which are as low as P550 a month.
With other loan companies, even the new digital lenders, they’re only offering the ability to borrow, and at usurious rates! As you can see with Bridge Access, the savings we provide is so significant that it enables our customer to escape the pressures of high interest (through low interest rates), of bad financial decisions (through forced savings), and some of life’s risk (through low cost insurance). This allows them to reach a higher level of financial security, which is one step closer to financial escape velocity. Remember, Bridge Access is not about digitizing lending. We are about giving the millions of emerging underbanked workers Access.
Here’s a recap: Bridge Access provides low-cost Financial Access to the Emerging Underbanked Workforce so that they can achieve Financial Escape Velocity. We are building a financial rocket ship. This covers what we do and how we do what we do.
As more people from around the world hear about Bridge, one question I get asked more often is, “So what is Bridge?”
Let me answer this: Bridge is a People Technology Company. What that means is that we are committed to using technology to improve the productivity and rewards of people, specifically, of workers, those putting energy into generating value.
I’ll share my thoughts on Productivity in another post, but I would like to share on what we believe to be the right way of rewarding workers, something we call Emerging Access.
Emerging Access means helping people grow (emerge) through better options (Access) and equal opportunity (Access).
We wanted to go beyond the current very transactional, purely material, highly impractical, and, frankly, very uncreative, ways of rewarding workers. Basically, when scoping the field we saw the following situations:
1. No Rewards
2. Salary-Based Rewards
3. Performance-Based Rewards
4. Material Rewards
The No Rewards situation obviously is not sustainable because the competition for great talent is harder than ever. This is possible in industries that utilize redundant labor, but don’t expect any dynamism from people who are not rewarded commensurately. This is particularly true for contractual employees. There is an extreme example of this, where employees are not only not-rewarded, but negatively exploited, such as when companies charge employees for disbursements of their own salary (yes, this happens quite often). So the guy who is already taking home very little is charged to withdraw his own pay. If you’re a company that’s ok with this, shame on you!
The Salary-Based Rewards situation is limited by annual schedules. In a fast-moving world, with people less and less willing to wait, working all year for a potential 2-5% salary increase when being expected to deliver 10-20x is not only NOT motivating, it gets discouraging. Despite that, this is the basic arrangement full-time employees rely on for rewards, and can be built on.
The Performance-Based Rewards are a great way to link Productivity with Rewards, but it usually on credits one kind of performance, such as beating sales targets, hitting production quota, or being on time consistently. I personally think it’s a good idea to utilize performance-based incentives as part of your overall compensation plan, but just keep in mind that to get the best out of a worker, you can’t have them running around with blinders just trying to achieve one kind of metric. Today’s company needs more collaboration, more agility, and more resourcefulness, hardly the qualities of someone who is narrow-minded.
Material Rewards, which include things like gift vouchers and flexible benefits, are also well-meaning, tax-maximizing ways of rewarding workers. One of the things I like about this is the options it gives workers. This is a step in the right direction. The main reason why I, personally, don’t choose it is because we, including me, tend to value material things over abstract things. For example, given the choice between taking a rest leave and converting that leave into points for buying a new phone, I, and I would think most people, would opt for the phone. I don’t want my team trading in much-needed rest for more “things”. I want them recuperating, creating margin in their life, having experiences out of the office, and truly recreating. People are more than just “make money to buy things” beings. Materialism has a way of making us live to work to afford things. I want my people experiencing the richness of life, and realizing that there are amazing things we can create and huge needs one can address. You will only recognize these if you move away from purely material motivations.
But the biggest thing going against these situations is simply this: Senior management is not incentivized to increase rewards commensurate to productivity. Why? Because they’re incentivized (meaning their own salary and bonuses) are mostly hinged on profitability, and how does a company become more profitable? By increasing productivity (sales, output) at a rate that’s higher than expenses (including cost of labor). So management is constantly faced with a “us or employees” decision.
So what should a company, a leader, whether CEO, Team Leader, or HR Manager do? How do they bridge seemingly competing ideas of rewarding employees more and increasing profitability.
The “AND” of Rewards
(Caption: Bridge Access users can enjoy incredible shopping options on Lazada among many amazing choices.)
At Bridge, one of our values is Understanding, captured by the statement, “In a world of “OR” look for the “AND”. So we developed a way to reward employees without costing employers, and without trapping them in a purely material mindset, we call our platform Bridge Access.
Here’s how it works: Employers make Bridge Access available to all their employees completely free. Employees can now enjoy low-cost loans (removing the lender-borrower relationship between employers and employees), low-cost placements (which includes savings, investments, and insurance), and low-cost purchases (from popular sites like Lazada, FoodPanda, and more). All these low-cost options are geared towards one thing: generating savings for the worker, who we also incentivize to put into forced savings, investments, and insurance, achieving not only material gain but financial inclusion AND financial security as well.
Here’s the end goal for every worker: Lower debt, higher savings, AND still be able to afford the life you want.
Again, this doesn’t cost the employer anything. They don’t even guarantee any repayments. They’re simply a partner in giving their own employees more access.
Other than basics of loans, placements, and shopping, Bridge Access has Bridge Points, a non-monetary way of rewarding employees who exhibit good behavior, from coming in on time to regularly donating to a chosen cause (we want to teach them to give too).
And we’re just getting started. There are more amazing merchants on the platform and scheduled to go live. The best way to do learn more about the platform is to make an account and try it out. It’s easy and free.
I’m going to get personal here, and business is personal, especially when we’re talking about lives and livelihoods. I have a one year old, and every day I think about the kind of future I would for him, the future I can prepare for, and the future world he’s entering. I think about these because I care for him. He is valuable to me. I don’t know how many times I’ve heard leaders and companies say, “People are our most valuable assets”, only to watch how they treat their people. So much for valuable. You don’t treat someone who is valuable as disposable. You don’t reward someone who is valuable with the bare minimums. You cultivate them, train them, develop them, encourage them, prune them, and, of course, truly reward them. You develop them to be their best version of themselves (as seen by their productivity) and you are overjoyed to see them succeed and enjoy life.
Personally, I love seeing my team’s vacation photos, especially when they’re with their family. I love seeing them trying new experiences, traveling, and resting. And I love enabling them with ways to access these things. I love it so much, we built a company to help other companies enjoy it too.
“It is the mark of an educated mind to be able to entertain a thought without accepting it.” – Aristotle
“In our part of the world, seeing a beggar on the street, driving past a naked baby running out of a shanty, or hearing stories of families suffering from generational debt, are too common. It’s easy to become desensitized, to simply turn a blind eye, and to busy oneself with our own concerns. I’m happy that our team has joined the ranks of those who choose to do something to improve the lives of others.”
– Janna De Guzman, We Dream of Access
After 3 years of quietly building Bridge, I’m very excited to share what we have been up to. To many clients, we are simply the best and most affordable payroll solution, combining technology and local expertise in a low-cost package. To other clients, particularly technology companies, we are a “Needle Factory”, a talent development partner, placing hires predictably, unlike traditional “Needle in a Haystack” recruitment firms. To thousands of employees, we are an incredible benefits partner, giving them access to low-cost products and services, including loans and investments.
To put things simply, we are a People Technology Company. Our foundational services are for Human Resources, including payroll, staffing, and recruitment. We layer this with a great value-add: Bridge Access, a fintech platform that makes amazing products and services available to every worker. In emerging countries, like the Philippines, who only have a 5% credit card penetration, and are charged interest rates as high as 20% a month and 3% a day. This is huge for both customers and merchants.
I really truly feel that our company is at the “AND of the world”, meaning we are at the forefront of a greater movement of inclusivity, connectivity, and access. What others see as separate, even competing, ideas, we look for ways to build a bridge.
Most lenders, even digital lenders, charge high interest for “risky” loans. We built a Bridge to give the “underbanked” loans AND low rates.
In a country with the majority of e-commerce still being cash-based, we partnered with the leading players in the field to build a Bridge for payroll payments.
In a world that’s losing human jobs to technology, we built a Bridge that provides software AND services.
In the tug of war between financial profits and social benefits, we built a Bridge here as well, a sustainable and scalable model that earns more as it helps more.
I invite you to come and join us at the “AND of the world.” Let’s find ways to work together. I’m sure we can find amazing ways to connect. We are Bridge after all.