Blockchain: the building blocks to time and cost efficient payroll processing?
Consultancy UK reported last week that KPMG is set to support ETCH, a blockchain payroll system aimed at boosting transaction-based time and cost savings.
‘Payrolls, wire transfers and bank payments have created an ecosystem for both businesses and employees, which is proving increasingly difficult to navigate’ indicates Consultancy UK. ‘In addition to wasting time, companies sacrifice significant fiscal efficiency on the process – with the settlement of transactions through traditional financial systems, costing upwards of $100 per transaction in some cases of wire transfers. Now, British start-up ETCH is seeking to utilise blockchain technology in order to change that’.
By using ETCH’s automated payroll system, ‘employees will be able to be paid and incentivised in real-time, while companies stand to make significant efficiency savings by circumventing the large transaction fees of major financial institutions, or issue further manual verification and approval throughout transactions’. The system will be accessible via a mobile application, creating greater user experience and transparency around payroll processing.
KPMG’s backing will support ETCH in finalising work with distributed ledgers and provide full life-cycle support, along with advising on the best business practices ‘valuations, tax implications, risk framework, governance and controls.’
The move is unsurprising given other Big Four rivals similarly gravitating towards harnessing significant FinTech developments. Consultancy UK continues that ‘rivals PwC launched a blockchain team in its Belfast office recently, while Deloitte announced plans for a blockchain bank in partnership with ConsenSys Enterprises last summer. KPMG are also no strangers to the arena themselves, having partnered with Microsoft in 2016 to create a range of blockchain service offerings’.
“ETCH is a superb initiative because it provides guaranteed payments in real-time for all work completed, something that no other platform is currently known to achieve. There are clear and immediate benefits, particularly for low and average income workers, who make up the clear majority of the population. ETCH stands out as it leverages blockchain, mobile and digital technologies in a customer-friendly way. It uses smart technology to power intuitive apps that deliver exactly what’s needed in a simple and neat format for those most in need of cash flow” comments Chris Mills, Head of Blockchain for KPMG UK.
Euros Evans, London-based technology entrepreneur and CEO of ETCH added, “billions of the world’s population live paycheque to paycheque, a situation that can lead to mounting debt, stress and poor health. The ETCH solution enables employers to pay their employees in real time”.
Whilst this brings a number of efficiency measures into play, the solution could also bring to the fore a number of further legislative and regulatory complexities: how would annual leave, statutory sick pay and payroll deductions be calculated? Would this in turn cause greater hardship later down the line?
Originally published at https://www.consultancy.uk/news/14098/kpmg-to-support-growth-plans-of-blockchain-start-up-etch