T. Rowe Price has launched an app called Waysaver to help workers build an emergency savings fund, the global asset management firm announced.
T. Rowe Price designed the app and algorithm for Waysaver while Galileo Financial Technologies is providing its cloud-based digital platform and program management services for the app’s operation.
“Employers are looking for solutions to help their workers balance competing priorities with continuing to save for retirement,” Kevin Collins, head of retirement plan services at T. Rowe Price, said in an email. “And workers are more likely to be attracted to a company that they believe cares about their financial well-being. Therefore we have made Waysaver available to employers who sponsor retirement plans record-kept by T. Rowe Price.”
Interest-bearing deposit accounts in which users can build emergency savings are offered by Delaware-based The Bancorp Bank.
“Addressing employees’ financial wellness is crucial to becoming a competitive employer, and research shows that workers are attracted to companies they believe care about their wellbeing,” adds Collins in a press release. “Waysaver is another piece to help our clients solve the employee recruitment and retention puzzle.”
Many workers grapple with financial security, as shown by their lack of savings to cover financial emergencies and proposed legislation to address short- and long-term challenges. A T. Rowe Price survey found that 45% of individuals use their credit cards for financial emergencies because of a lack of emergency savings.
“Waysaver is built upon our deep understanding of savings patterns and participant behavior, adapts as patterns change, and allows the employee to fully control and access funds as needed,” explains Collins.
Plan sponsors Clients of T. Rowe Price can add the app to their benefits this year. The app is currently restricted to T. Rowe record-kept plans.
Employers will opt-in to use the app and offer Waysaver to employees, according to Collins. Employees using the app can establish savings goals and a deposit account to receive automatic contributions. And employees can pause, add or adjust their savings.
The app was built to offer an easy, automatic way to save for emergencies, adds Collins.
“We are excited to expand our plan sponsor clients’ benefits offering with an automatic, smart and integrated solution that helps protect employee retirement readiness,” he says. “Waysaver is built upon our deep understanding of savings patterns and participant behavior, adapts as patterns change, and allows the employee to fully control and access funds as needed.”
Waysaver is not part of the retirement plan itself, but instead, a separate program not subject to plan rules or requirements, Collins said.
“We believe this will help employers attract and retain talent by helping to improve the financial health of their employees,” he adds.
Galileo is financial technology platforms provider based in Salt Lake City. Global asset manager T. Rowe Price is based in Baltimore.