Macfarlanes advises Salary Finance on joint venture with CYBG to support salary-deducted customer lending
Co-founded by the former Head of Google UK & Ireland, a former banking consultant and a social impact entrepreneur, Salary Finance brings together expertise in financial technology with a desire to do social good.
A core part of Salary Finance’s financial wellbeing platform is its salary-deducted loans which enable employees to take out loans that are then repaid automatically through their employer’s payroll system. One main advantage of this for customers is the benefit of lower interest rates due to the security of the repayment method.
Salary Finance reaches over a million employees across all sectors with household name clients in the UK including BT, E.ON, Virgin Active, Mitie, Capgemini, Carlsberg, Dixons Carphone, Saga, L&G and many NHS Trusts, local councils and schools.
CYBG has agreed to finance up to £400m of personal loans for Salary Finance, enabling the firm to continue to scale this product over the coming years.
The Macfarlanes team for this matter was led by finance partner Kirstie Hutchinson and corporate partners Luke Powell and Alex Edmondson. Further advice was provided by commercial partner Malcolm Walton, financial services partner Michelle Kirschner and tax partner Jeremy Moncrieff. Employment expertise came from partner Seán Lavin.
The partners in each of these areas were ably assisted by senior solicitors Mike Birkett (corporate) and Rita Hunter (financial services), and solicitors Christine Dowdall (finance), Martha Campbell (commercial), Vidhi Mahajan (financial services), Catherine Hill (tax) and John Morgan (employment).
Kirstie Hutchinson comments: “Macfarlanes is delighted to have been able to support Salary Finance over this exciting next phase of its journey with CYBG. Fintech continues to disrupt and revolutionise the financial sector - Salary Finance uniquely so, via its innovative employee personal loan and financial wellbeing platform and its outstanding management team. We very much look forward to building on that with them.”