Following the necessary regulatory approvals, CYBG, via its wholly owned subsidiary Clydesdale Bank, has completed its joint venture with market-leading FinTech, Salary Finance Limited.
Salary Finance is an innovative FinTech platform that connects to the payroll of participating employers to provide financial wellbeing benefits to employees, including salary-deducted savings and loans, as well as financial education.
CYBG will fund Salary Finance’s rapidly growing salary-deducted loans product line, which on average saves customers over £600* in interest and enables them to pay off debts six to 12 months sooner. The lower rates can be offered due to the efficiency and security provided by the repayments being collected directly through payroll. Salary Finance will provide the joint venture with all of the services required for the business, including loan origination and management, marketing, cash management and other corporate services.
The joint venture will add an innovative channel to CYBG’s existing personal lending business and provide an additional platform of personal loan growth, complementing the Bank’s existing product plans and providing an incremental opportunity to grow its unsecured loan strategy within the existing risk appetite.
Salary Finance reaches over one 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.
David Duffy, Chief Executive of CYBG, said: “We’re delighted to be expanding our lending proposition into a new area through this new joint venture with Salary Finance. We have been hugely impressed by the Salary Finance team and the clear social purpose underpinning everything they do and we are delighted to be able to support the growth of this innovative platform.
“The joint venture adds to CYBG’s growing range of FinTech partnerships - with over 40% of UK consumers regularly using FinTech services, there is clear value in partnering with innovative new providers, like Salary Finance”.
Asesh Sarkar, Chief Executive of Salary Finance, said: “We 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.”