By Roger Baird on 12th February 2019
The high street bank said the deal provides an ‘incremental opportunity’ to boost its personal lending business.
Clydesdale Bank owner CYBG has signed a joint venture with fintech firm Salary Finance which will see it provide the platform with a £100m credit facility in a bid to boost the high street bank’s personal lending.
The Leeds-based bank said it will secure the partnership a six-month rolling credit facility, adding that the move is an “incremental opportunity to develop CYBG's unsecured loan business”.
London-based Salary Finance uses its platform to link directly to a worker's payroll and sells them savings and loan products, as well as offering financial advice.
The business already has contracts with a number of large employers such as BT, Mitie, Dixons Carphone and Hackney Council in London.
CYBG and Salary Finance said they will each invest £500,000 into the operation.
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."
He added: "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."
CYBG added there was scope for the credit facility to be raised if both parties agreed.