Clydesdale Bank owner CYBG has struck a joint venture deal with fintech firm Salary Finance to boost the group’s personal lending business.
Salary Finance has developed a platform that connects to the payroll of participating businesses to provide “financial wellbeing benefits” to their employees, including salary-deducted savings, loans and financial education.
The London-based fintech will provide the joint venture (JV) with all of the services required for its business, including loan origination and management, marketing, cash management and other corporate services.
Glasgow-headquartered CYBG, which also owns the Yorkshire Bank, said the JV would be complementary to its existing product plans and will provide an “incremental opportunity” to develop its unsecured loan business.
David Duffy, chief executive of CYBG, said: “We’re delighted to be expanding our lending proposition into new areas through this new joint venture with Salary Finance.”
“We have been hugely impressed by the Salary Finance team and the clear social purpose underpinning everything they do and we are delighted to be able to support the growth of this innovative platform.
“The joint venture adds to CYBG’s growing range of partnerships – with over 40 per cent of UK consumers regularly using fintech services, there is clear value in partnering with innovative new providers like Salary Finance.”
Clydesdale and Salary Finance will each acquire a 50 per cent stake in the JV.