FinTech platform Salary Finance raises $20 million and launches in the U.S.
August 28 2018 - 6:00AM
Today, Salary Finance - the financial wellbeing platform for
employees - announced the completion of a $20 million Series B
funding round to scale its platform in the United States, expanding
from strong growth in the United Kingdom. The investment round is
led by Blenheim Chalcot and Legal & General and will focus on
U.S. expansion supported by its new headquarters in Boston, MA.
Founded less than three years ago, Salary Finance has grown
rapidly to become a FinTech success story and mainstream employee
benefit. Recently featured in a study published by the Harvard
Kennedy School, the report revealed that employers in the UK that
have used Salary Finance experienced a significant increase in
employee retention (28%), while reducing employee credit costs by
two-thirds.1
The platform now helps almost one million UK employees pay off
debt faster, save regularly and improve their financial habits in
partnership with companies like BT, Virgin Active, Hospital Trusts
and more. To date, the platform has helped UK employees save on
average $785 in interest per year, pay off debt 6-12 months sooner,
build employee credit scores and ultimately help them save
more.
Now available to participating U.S. employers, the platform aims
to address financial challenges Americans are facing. Personal debt
is a huge source of stress, as Americans accrue high interest rates
on credit cards and payday loans, reaching close to $9 billion2 in
payday loan fees each year, and almost half of Americans lack any
real savings with 44% unable to cover a $400 emergency.3
“Companies are taking notice of the impact financial stress can
have on employees, and Salary Finance presents a unique solution to
bring financial wellbeing to the American workforce,” said
Asesh Sarkar, Chief Executive Officer of Salary Finance. “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%4 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.”
Salary Finance has partnered with BofI Federal Bank, the lender
of the Salary Finance program and United Way in the U.S.. United
Way is the largest privately funded non-profit in the world, to
help it reach rapid scale. United Way reaches 60,000 corporate
partners, which includes more than half of the Fortune 500. Its
payroll giving program annually raises $4.7bn to fight for the
health, education and financial stability of every person in every
community. United Way is introducing Salary Finance to its
corporate partners as an added benefit to their employees.
“We are delighted with the progress Salary Finance has made
since we founded the platform with Asesh Sarkar and Daniel Shakhani
at Blenheim Chalcot’s West London Venture Builder in 2015,” said
Dan Cobley, Chair of Salary Finance and FinTech Partner at Blenheim
Chalcot. “The platform is founded on strong and authentic social
principles, solving real problems for employees, and it’s inspiring
to see employer adoption in the UK and U.S. scaling
rapidly.”
“Salary Finance is a terrific example of a big business and a
growing business coming together in an economically and socially
useful way,” said Nick Frankland Managing Director of Fintech for
L&G. “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.”
To learn more or team up with Salary Finance, please visit
SalaryFinance.com/US.
About Salary Finance Salary Finance is the
financial wellbeing platform for employees founded in the United
Kingdom and recently launched in the United States. Salary Finance
U.S. is based in Boston, MA and operates across the U.S. in
partnership with the Salary Finance program lender, BofI Federal
Bank. Now offering its platform to nearly one million employees,
Salary Finance works with a range of leading businesses including
United Way U.S., L&G America, BT, Virgin Active, Health Trusts
and more. The company was named Prince Charles’s BITC Responsible
Business of the Year 2018. To learn more, visit
www.salaryfinance.com/us.
About BofI Federal BankBofI Federal Bank is a
federally chartered, FDIC insured, full-service bank that provides
a wide variety of deposit accounts, as well as financing for single
and multifamily residential properties, small-to-medium size
businesses in target sectors, and select specialty finance
receivables. With approximately $10 billion in assets, BofI Federal
Bank provides consumer and business banking products through its
low-cost distribution channels and affinity partners. BofI Holding,
Inc. (NASDAQ: BOFI) is the holding company for BofI Federal
Bank. BofI Holding, Inc.’s common stock is listed on the
NASDAQ Global Select Market under the ticker symbol BOFI and is a
component of the Russell 2000® Index, the S&P SmallCap 600®
Index, and the KBW Nasdaq Financial Technology Index. For more
information on BofI Federal Bank, please visit
www.bofifederalbank.com.
1 Harvard Kennedy School 2018: The Power of the Salary Link:
Assessing the Benefits of Employer-Sponsored FinTech Liquidity and
Credit Solutions for Low-Wage Working Americans and their
Employers
2 http://www.pewtrusts.org/en/research-and-analysis/fact-sheets/2016/01/payday-loan-facts-and-the-cfpbs-impact
3 https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf
4 Federal Reserve's Report on the Economic Well-Being of U.S.
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.
Meagan Fishermeagan@praytellstrategy.com 203-273-3048
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/d83b5502-336d-427d-8b79-11782467a2f5
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