CYBG enters joint venture with fintech platform Salary Finance to boost personal lending business

Callum Keown
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CYBG has entered a joint venture with fintech firm Salary Finance (Source: Getty)

Clydesdale and Yorkshire Bank owner CYBG has entered a joint venture with a fintech platform to boost its lending business.

CYBG has partnered with fintech financial wellbeing platform Salary Finance as it looks to develop its unsecured loan business.

Read more: CYBG shares soar as it boosts mortgage lending

Both firms will pump £500,000 into the joint venture, which will allow customers to access Salary Finance’s services including salary-deducted savings, loans and financial education.

The fintech platform connects to the payroll of participating employers to provide benefits to workers.

The company works with more than a million people across the country, and with employers such as BT, Mitie, Virgin Active, Dixons Carphone, and the NHS.

CYBG chief executive David Duffy said: “The joint venture adds to CYBG’s growing ranger of partnerships - with more than 40 per cent of UK consumers regular using fintech services, there is clear value in partnering with innovative providers, such as Salary Finance.”

He added: "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."

Last month the Clydesdale Bank owner was hit by an investor revolt over executive pay.

More than a third of shareholders voted against a pay deal for top bosses at the company’s AGM in Australia.

The company, which recently acquired Virgin Money for £1.7bn, said it recognised “the large number of votes opposing the resolution,” and would engage with shareholders in the coming months to “fully understand” their concerns.

According to CYBG’s annual report, chief executive David Duffy was paid £1.8m in 2018, including bonuses - a decrease on the previous year’s £2.05m.

Read more: Clydesdale Bank owner suffers massive investor backlash

But Duffy’s bonus could rise to 118 per cent of his salary, while his long-term incentive plan payout could jump to 177 per cent of his basic pay - compared with 100 per cent of his salary in 2018.

It would take his maximum pay packet, if all targets are met, to £4.25m.