Salary Finance raises $20m in Series B to support US expansion

Employee benefits financial wellbeing business SalaryFinance has raised $20m in its Series B round to support its expansion in the US.

The round was led by Blenheim Chalcot and Legal & General, and will be used to focus on the US market which has been bolstered by the launch of its Boston office.

The UK-based company helps employees to improve financial health, consolidate debt and start saving. Through the platform a user can apply for a loan of up to 20 per cent of their salary, with interest rates from 3.9 per cent, to help consolidate debts. Loan repayments are deducted from the borrower’s salary and helps to lower risk and cost, to help with savings.

Some of the company’s clients include employment at Dunelm, Timpsons, Worldpay, Ageas, Saga, Hays, Agilisys and E.ON.

Not only can consumers take out loans, but they can easily make savings with the money automatically being stored from their salaries. The platform also provides financial education and support to help improve the financial wellbeing of employees.

L&G managing director of FinTech Nick Frankland said, “Salary Finance is a terrific example of a big business and a growing business coming together in an economically and socially useful way.

“At L&G, we put patient capital in touch with impatient technology, especially when it creates a fantastic benefit for consumers, and Salary Finance is a terrific endorsement of that strategy with huge growth potential.”

Last year, the company secured a £40m investment led by Legal & General and Blenheim Chalcot. The former round was raised to support the launch of its Financial Wellbeing Hub, which offers educational products and services, credit score checks and budgeting tools.

Salary Finance recently formed a partnership with non-profit organisation United Way, to provide its corporate partners with financial tools for their employees.

Copyright © 2018 FinTech Global

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