Introduction
New research by embedded finance expert Weavr has uncovered a troubling trend in UK workplaces: employees lose an estimated £690 million annually in unclaimed and unpaid expenses. A survey of 500 UK office workers revealed that 81% had to wait over a month for reimbursement, leading to financial strain and mental health concerns. Shockingly, 63% of employees have faced unreturned expense claims, with 4% losing over £500 each year.
The report highlights the struggles caused by traditional expense management systems, which often leave employees covering costs out of pocket. Complex processes and unclear rules add to the problem, with 75% of employees admitting to missing claims entirely. Weavr’s solution—company-funded expense cards powered by embedded finance—offers a game-changing approach. These cards integrate with everyday tools like accounting apps, simplifying expense management and boosting employee satisfaction.
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Industry Comments
Alex Mifsud, CEO and Co-Founder of Weavr said on the report: “More and more employees across the UK are finding themselves feeling like human overdrafts for their employers given how often they are made to cover company expenses. Whether the cause stems from employers withholding or delaying expenses or employees finding the expenses process overly complicated, the results are the same: negative feelings towards the business and the work required. It’s not just an issue of employees becoming out of pocket, it can also permanently damage the reputation of the employer. In the current economic climate, where cost-of-living increases have put pressure on the personal budgets of many workers, this reliance on employees’ own funds erodes engagement and loyalty.”
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FAQs
- What are the key findings of Weavr’s research?
Weavr found that UK employees lose an estimated £690 million annually in unpaid or unclaimed expenses. Over 81% of surveyed employees reported delayed reimbursements, and 63% had experienced denied claims, causing financial and emotional stress. - How do company-funded expense cards work?
Expense cards are pre-funded by employers and integrate with accounting apps or booking platforms. Employees use them directly for business-related payments, removing the need to pay upfront with their own money. - Why do employees lose expense claims?
Complex systems and confusing rules prevent many workers from filing claims on time. As a result, employees lose an average of £90 annually due to unclaimed expenses. - What impact does this have on businesses?
Delayed or denied reimbursements harm employee morale and loyalty. In today’s economic climate, this can negatively affect engagement and damage a company’s reputation.
Conclusion
Weavr’s report highlights an urgent need to reform traditional expense management practices. For too long, employees have been used as a “credit line” for employers, with delayed reimbursements causing financial strain and frustration. The solution lies in company-funded expense cards powered by embedded finance. These cards eliminate out-of-pocket spending, simplify processes, and foster greater trust and satisfaction among employees.
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As Alex Mifsud, CEO of Weavr, emphasized, neglecting this issue risks damaging employee loyalty and harming workplace culture. By adopting smarter expense management tools, businesses can ensure their teams feel valued and supported while improving overall efficiency. In a time of economic uncertainty, solutions like these are crucial for fostering a better future for employees and employers alike.
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