CYBG has committed to fund up to £400 million of personal loans, subject to certain conditions, on Salary Finance. CYBG is a consortium of financial firms including Clydesdale Bank, Yorkshire Bank and Virgin Money.
Salary Finance is a platform that connects to the payroll of employers to provide employees, credit options including salary-deducted savings, loans and pay advances, as well as financial education. Currently, Salary Finance reaches over a million employees across all sectors with household name clients in the UK including BT, E.ON, Virgin Active, Mitie, Capgemini, Carlsberg, Dixons Carphone, Saga, L&G and many NHS Trusts, councils and schools.
Salary Finance was founded in 2015 by co-founders Asesh Sarkar, a former banking consultant, Daniel Shakhani, a social entrepreneur, and Dan Cobley, former head of Google UK.
Asesh Sarkar, Chief Executive of Salary Finance, said they are on a mission to make the lives of millions of employees around the world financially healthier and happier.
“Our flagship salary deducted loans product is a core part of our broader financial wellbeing platform and the funding joint venture with CYBG will enable us to continue to scale the product over the coming years. We are proud to work with a bank that demonstrates such openness to partnering with Fintech firms to create better outcomes in society.”
CYBG will fund the growing salary deducted loan products which is said to save individuals a considerable amount of interest in comparison to alternatives. The lower rates can be offered due to the efficiency and security provided by the repayments being collected directly through payroll.
CYBG notes that employee financial wellbeing is fast becoming a priority for employers as it improves the overall morale of employees while boosting productivity. This is an important focus at CYBG, a company that encourages people to take control of their finances and be more financially fit.
Salary Finance has an existing banking relationship with CYBG as an SME customer with a revolving credit facility funding line.
CYBG says it has significantly invested in its digital platform, iB, as part of a £350 million investment program. This newest JV is said to demonstrate CYBG’s focus on both supporting and partnering with Fintechs.
“Fintech is revolutionising how the financial sector works – 42% of us in the UK now use the services of at least one Fintech firm,” commented David Duffy, Chief Executive of CYBG. “We have been hugely impressed by the Salary Finance team and the clear social purpose that underpins everything they do. We are delighted to be able to support the growth of this innovative platform.”