Salary Finance raises $20million for US launch
Written by Hannah McGrath
Salary Finance, a financial fitness app that helps employees to save, has raised $20million in Series B funding led by Bleinheim Chalcot and Legal & General to launch in the US and support growth in the UK.
The UK-based FinTech, launched in 2015, partners with employers to help staff switch from debt into saving through loans and financial support facilitated by salary deduction schemes.
The funding round will help the firm launch its services in the US and extend the reach of its platform beyond its current userbase of one million employees in the UK.
The company claims to have helped employees save an average of £600 in interest and pay off debts 6-12 months sooner while building their credit scores and savings.
Salary Finances’ founders are hoping employers will adopt the technology to support the 17 million working people in the UK, around 40 per cent of the workforce, who have less than £100 in savings according to Money Service Advice.
Recent UK employers to join Salary Finance include BT, Capgemini, Virgin Active, Mitie and a number of NHS trusts and Councils.
To facilitate the firm's roll out across the US, the company has partnered with United Way, a US non-profit with a focus on health, education and financial stability, which will introduce the platform to its corporate partners as an employee benefit.
Asesh Sarkar, chief executive of Salary Finance, said: “We see the same societal challenges in the US, with 40 per cent 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.”
Nick Frankland, managing director for FinTech at Legal & General, said Salary Finance was “A terrific example of a big business and a growing business coming together in an economically and socially useful way.”