Salary Finance founders
Salary Finance, the FinTech financial wellbeing platform for employees, has announced a $20M investment to launch and scale the business in the US, as well as to continue to support its rapid growth in the UK.
The Series B investment was led by founding investor Blenheim Chalcot and multinational financial services company Legal & General.
Salary Finance found that employers are becoming increasingly concerned about financial wellbeing, so it aims to help employees move from debt to savings. All savings deposits and loan repayments are taken by salary deduction, which creates a simple way for employees to manage their personal finances, and Salary Finance’s SaaS-based platform works with existing payroll technology and processes without the need for complicated integration.
To date, Salary Finance has helped employees save on average £600 in interest and pay off debts 6-12 months sooner, as well as to build their credit scores and savings.
Founded in the UK in 2015, the Salary Finance platform is fast becoming a mainstream employee benefit, reaching almost a million employees across the UK. Recent employers to join the platform include BT, CapGemini, Virgin Active, Mitie and many NHS trusts and Councils.
On BT’s launch of Salary Finance, BT chief executive Gavin Patterson said: “Salary Finance has been one of the most impactful employee benefits I have seen launched in recent years.”
Financial wellbeing is a global concern, and as part of today’s news, Salary Finance is also announcing its launch in the United States.
Salary Finance has partnered with United Way, a non-profit focused on health, education and financial stability, to help it reach rapid scale in the United States. United Way is introducing Salary Finance to its corporate partners as an added employee benefit. Salary Finance is currently in the process of rolling out to its first 250,000 employees in the U.S., including the employees of United Way and L&G America. In total, United Way reaches 60,000 corporate partners, including half of the Fortune 500.
Asesh Sarkar, chief executive of Salary Finance, said: “We are delighted to build on our success in the UK with our U.S. launch. We see the same societal challenges in the U.S., with 40% of American employees lacking any real savings, and carrying personal debt, particularly high-interest debt like credit cards and payday loans.”
Nick Frankland, managing director for FinTech at L&G, said: “We have been really pleased to continue to support the stellar growth of Salary Finance. It’s a terrific example of a big business and a growing business coming together in an economically and socially useful way.”
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