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Salary Finance raises $20M to launch in the US

Today we announced a $20M Series B investment led by founding investor Blenheim Chalcot and Legal & General. The investment will be used to launch in the US and support our growth in the UK.

 

Today, 17 million1 working Brits – around 40% of the workforce – have less than £100 in savings, with debt increasing by 26% since 20132. At the same time, employers are recognising the link between an employee’s confidence in their personal finances and their engagement, productivity and wellbeing in the workplace, making financial wellbeing an increasing priority for employers in the United Kingdom and beyond.

 

We partner with employers to offer a benefit that helps 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. To date, we have 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.

 

We now reach a million employees across the UK. Recent employers to join Salary Finance include BT, Capgemini UK, 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, so we are also excited to announce our launch in the United States.

 

We have 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. We are currently in the process of rolling out to our first 250,000 employees in the US, 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.

 

Commenting on the US expansion, Asesh Sarkar, Chief Executive of Salary Finance, said:

 

“We are delighted to build on our success in the UK with our US launch. We see the same societal challenges in the US, with 40%3 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”

 

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. At L&G we work really hard in support of businesses we invest in and believe that our job is to put patient capital in touch with impatient technology, especially when it creates fantastic benefit for consumers. The success of Salary Finance is a terrific endorsement of that strategy.”

 

Dan Cobley, Chair of Salary Finance and FinTech Partner at Blenheim Chalcot, added:

 

“Since we founded Salary Finance with Asesh Sarkar and Daniel Shakhani in 2015, we’ve seen a strong appetite from a range of companies that want to help their employees better manage their finances. Founded on strong and authentic social principles and solving real problems for employees, it’s inspiring to see the rapid employer adoption and the difference we are making.”

 

This story was covered in the Sunday Times here: Salary Finance’s growth push in US

 

  1. Money Advice Service
  2. Bank of England
  3. Federal Reserve’s Report on the Economic Well-Being of US Households in 2017: 40% of adults said that if faced with a $400 unexpected expense, they would either not be able to pay it or would do so by selling something or borrowing money.
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