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Webinar Recap: Bridging the Cost of Living Gap

It is reported that about two-thirds of employees state that their earnings are not keeping up with the cost of living, and a majority of those individuals would not be able to cover a $500 emergency expense. This financial stress creates friction and a lack of productivity in the workplace, ultimately placing a huge financial impact on employers.

Below is a summarized Q&A from a webinar Corestream did with Jameson Fauver, VP of Business Development with Kashable. Kashable is a voluntary financial wellness benefit that provides employees access to responsible low-cost loans to help pay down existing debt and put them on a path towards their financial goals, ultimately improving their overall health and general satisfaction in the workplace. 


What are the biggest financial challenges that Kashable sees plaguing American employees today?

The biggest financial challenge facing American employees is the inability to save money and build an emergency fund. Most Americans live paycheck to paycheck and do not have even $1,000 in savings to cover unexpected expenses. This lack of savings forces people to rely on high-interest debt when emergencies arise.

Recent inflation and rising interest rates have exacerbated this problem by increasing the cost of living faster than wages can keep up. The ending of federal subsidies, repayment of student loans, and rising housing costs have further squeezed employees’ budgets. Employees are financially stressed and often turn to loans against retirement funds just to get by each month.

The second major issue is lack of access to affordable credit. Over half of Americans have subprime credit scores and cannot qualify for credit cards or bank loans with reasonable rates. When emergencies come up, their only options are predatory lending from payday loans, title loans, and others with interest rates over 300%. This traps people in cycles of debt with no end in sight.


How does Kashable seek to solve these challenges?

Kashable was founded by Einat Steklov and Rishi Kumar, immigrants who struggled to build credit after arriving in America. Their mission is to provide fair lending based on more than just a credit score. Kashable partners with employers to offer affordable loans, financial coaching, credit monitoring, and savings accounts to employees.

By leveraging payroll data, Kashable can underwrite loans based on employee tenure and income versus just a credit score. This model allows them to lend to subprime employees at rates far less than predatory lenders. Employees can use Kashable to pay off high-interest debt, avoid 401k loans, and establish or improve credit.


What results have employees seen from using Kashable?

There are four main benefits employees yield:

  1. Pay off high-interest debt at lower rates
  2. Preserve retirement funds by avoiding 401k loans
  3. Build credit history and improve credit scores
  4. Reduce financial stress and improve sense of financial security

Over 40% of borrowers use Kashable to refinance debt at lower rates, while Kashable loans have also helped 83% of borrowers avoid 401k loans and withdrawals. The average user sees a 45 point boost to their credit score, and 8 out of 10 no-score borrowers saw a credit score after repaying their loan.

These results help create financial stability and improve retirement readiness. Employees are able to get out of debt cycles and start saving. This improves financial security and reduces stress.


How does Kashable align with DEI goals and help close the wealth gap?

Lack of credit disproportionately impacts communities of color. Kashable's model of looking beyond credit scores increases access and financial mobility. Kashable’s borrowing base is even more diverse than the overall working population in America. By providing fair lending, Kashable helps give everyone an opportunity to build assets and wealth.


What impacts have employers seen from offering Kashable?

When employees have their finances in order, it translates to gains for the employer. Kashable users are more engaged, productive, and loyal. They appreciate their employer for offering the benefit. Employers also spend less time and money on 401k loans and see improved retirement readiness. Employees are able to save more and retire on time.

Better financial health also improves healthcare. Employees are more likely to get preventative care and avoid large claims down the road. This saves on premiums and claim costs. Financially secure employees are also less likely to leave for slightly higher pay elsewhere, boosting retention and tenure.


What guardrails does Kashable have in place?

Kashable offers a responsible alternative but maintains strong safeguards:

- Employees can only take one loan at a time

- Loan amounts based on income to ensure affordability

- Payroll deductions mean on-time repayments

- No endless credit - loans must be fully repaid

- Knowledgeable staff provide coaching and support

These features allow Kashable to help those in need while preventing irresponsible borrowing. Employees get access to emergency funds without the typical debt traps.


How does Kashable integrate with payroll and core HR platforms?

The process is simple, especially for Corestream customers. Kashable and Corestream handle everything on the backend and seamlessly integrate payroll deductions to the already existing payroll slot. Employers can easily add Kashable to their platform and start offering the benefit to employees either on-cycle or off-cycle. Kashable provides the lending application to the employee and then facilitates repayment via payroll.

Corestream as a voluntary benefits platform consolidates deductions across all voluntary benefits and handles all billing reconciliation and any back and forth with the carriers to create a “no noise” voluntary benefits motions for the employer.



Financial stress is impacting a large portion of the workforce. This leads to lost productivity, turnover, and reduced retirement readiness. By partnering with innovative fintech providers like Kashable, and providing a full suite of voluntary benefits through Corestream, employers can provide affordable credit access and other benefits that help build financial security. Employees are able to stabilize their finances, improve their overall health, and take control of their future.

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