SalaryFinance launches today
SalaryFinance, a venture I have co-founded with an amazing team and partners, has launched today.
We provide a new employee benefit which aims to save UK workers ￡4bn per annum through lower interest repayments.
Research shows that 1 in 3 UK workers cite money worries as having a negative impact on their productivity at work. To address this, SalaryFinance works with progressive employers to help their staff reduce their personal finance interest costs. Our platform allows employees to take out loans when they need it, with repayments collected from salary deduction. This repayment method substantially lowers cost, the savings from which we pass on to employees. We focus on reducing the cost of existing borrowing, rather than encouraging more.
Our interest rate of 7.9% APR is the same for all staff and is around one third the rate charged by the big four UK banks, for loans less than ￡5,000. Whilst the big banks advertise lower rates, they tend to be for higher value loans and not available to all consumers. On average, employees who use SalaryFinance, benefit from an equivalent 2-3% pay rise, through lower interest costs. There is minimal admin and no cost or liability for employers, making SalaryFinance a win-win product, for employers and their staff.
Our launch is covered in The Telegraph (here) and our website is also live (here). Do follow us on LinkedIn (here) and let us know what you think.
Managing Director | Accenture UKI & EMEA | Cyber Security and Resilience
9 年Good work!
Head of Strategy - Barclays Private Bank and Wealth Management
9 年Best of luck Asesh!
Mortgage and property risk transformation
9 年Interesting product launch, though debt consolidation is not new. Sadly the main take up consolidation loans has historically been by over-indebted near- or sub-prime consumers. The consolidation provides a temporary relief by reducing monthly repayment levels but does not address the underlying problem that many spend more than they earn. Salary sacrifice is also not new, though again it has mainly been seen where a court order is obtained to force payment of certain types of "debt" such as outstanding child maintenance payments. It adds rigour but removes some month-to-month flexibility from the debtor. Through good times and bad, and right across all lending products, one characteristic defines profitability (and viability) more than any other - do your borrowers pay you back?!! The use of peer-to-peer lenders may provide a panel that can offer lower than normal rates of interest, but it will be interesting to see how any sharp increase in loan impairment charges impacts confidence in the peer-to-peer market. Lending is good business until you start taking losses....