While the market seems to be shifting away from payday loans and charging interest fees for giving employees access to their earnings in advance of pay day, U.K.-based Salary Finance seems to be heading in the opposite direction. They’ve raised a $32.8 million Series C and are branding employee loans as “wellness.” Their first test of their U.S. expansion may be how their messaging is met in a very mature U.S. payroll and financial benefits market.
From FinExtra:
Salary Finance raises $32.8m, hires SoFi co-founder for US push16 April 2019 2 3 1Salary Finance, a UK-based startup focused on salary-linked savings and loans for employees, has raised $32.8 million and hired SoFi co-founder Dan Macklin for a US expansion.Existing investors Blenheim Chalcot and Legal & General led the Series C funding round for Salary Finance, which was founded in 2015 and partners with employers to bring “financial wellness” to employees by letting them save through their salary and draw down their pay as they earn it – rather than waiting until the end of the month.The company has now set its sights on the US, where a recent survey found that 48% of employees have money worries. With a target of reaching 10 million Americans, it has brought in Macklin as CEO of US operations.
Source: Salary Finance raises $32.8m, hires SoFi co-founder for US push