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.”
CYBG PLC is the UK’s sixth biggest bank offering a true alternative to the status quo in banking. Operating under the Clydesdale Bank, Yorkshire Bank, B and Virgin Money brands, we are the only Bank outside the ‘Big 5’ that boasts a genuine full-service retail and SME capability. We serve over six million customers across the UK through an omni-channel model of online, mobile and telephone banking and we have a national network of 250 branches and business banking centres.
Our ambition is to offer the best service in UK banking, providing customers with market-leading functionality and innovative products, supported by robust technology and a first class, personal customer experience.
In February 2016, we completed our IPO from National Australia Bank, regaining our independence for the first time in almost 100 years. CYBG completed the acquisition of Virgin Money on 15 October 2018, enhancing the Bank’s scale and national footprint.
Co-founded by the former Head of Google UK & Ireland, a former banking consultant and a social impact entrepreneur, Salary Finance brings together expertise in financial technology with a desire to do good. The award-winning, fast-growing company is on a mission to improve the lives of working people in the UK and US. Their mission is to change the lives of working people by helping them become debt-free and save towards their financial goals.
Salary Finance is part of Blenheim Chalcot, a leading venture builder, with a 20-year track record of creating digital businesses that transform industry sectors. They have also received investment from Legal & General, one of the world's leading financial services companies, who help over 10 million people worldwide with savings, investments and insurance.
*Based on an average loan of £2,900, over a 30 month loan term, at a representative APR of 9.9%