Legal and General backs "anti-Wonga" fintech startup SalaryFinance in £40m funding round

 
Lynsey Barber
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Workers In Offices At Night In London
Employees can get better loan rates through Salary Finance (Source: Getty)

Legal and General has led a £40m investment into an innovative fintech startup which offers financing loans and savings people's salaries.

SalaryFinance was founded by the former boss of Google in the UK, Dan Cobley, along with former banking executives Ashesh Sarkar and Daniel Shakhani and has been described as the "anti-Wonga" of loans.

It lets people consolidate their existing debts and takes repayments straight from salaries in the same way as tax or student loan repayments, offering lower rates than payday lenders and credit cards. It also offers savings in the same way to encourage people to better manage their finances.

Read more: Xavier Rolet bets the UK can create an £100bn company in the fintech sector

The fresh cash, which adds to the $6m it raised in 2015, will go on expanding further into the US.

SalaryFinance, identified as one of City A.M.'s Digital Innovators, boasts the NHS, Saga and Eon among the major companies to offer the service to employees.

Fellow UK startup Neyber which offers similar service landed £100m last month from Goldman Sachs among others.

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