This key investment will fund the launch of Salary Finance in the US and support its rapid UK growth.
Ahead of the launch, Salary Finance’s Chief Executive Asesh Sarkar 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. This becomes a never-ending way of life for many, impacting their engagement and productivity at work.”
Already, the Fin Tech platform has been adopted by globally recognised companies such as; BT, Virgin Active, Capgemini UK, Mitie and many NHS trusts, who recognise the value of employee’s feeling financially secure. The platform acknowledges the link between employee’s financial confidence and their productivity, engagement and mental well being at work. In today’s working society 17 million working Brits, which equates to 40% of the workforce have less than £100 in savings, with debt increasing by 26% since 2013, Salary Finance are engineering the possibility for financial wellness and debt education to be implemented across many businesses.
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.”
Salary finance aims to reduce the stress surrounding the two key issues of saving and paying off debt by providing simple solutions to daunting issues. The platform allows employees to have savings deposits and loan repayments to be taken directly from their salaries. Their SaaS-based platform works with existing pay roll technology, allowing for a seamless process of integration for employers adopting the platform.
Commenting on the funding, 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. The business will grow in size by over ten times this year and being awarded Prince Charles’s BITC Responsible Business of the Year 2018 was a real honour.”
Considering these successes, US companies are eager to adopt the platform as they make the move stateside. Their partnership with the non-profit United Way which is focussed on health, education and financial stability, will provide a huge boost to Salary Finances US launch as United Way reaches 60,000 corporate partners, including half of the Fortune 500. Already, Salary Finance is in the process of rolling out to its first 250,000 employees in the US, including United Way and L&G America.
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