CYBG Enters Joint Venture With Fintech Lender Salary Finance

LONDON (Alliance News) - CYBG PLC said Tuesday its wholly owned subsidiary, Clydesdale Bank PLC, ...

Alliance News 12 February, 2019 | 8:50AM
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LONDON (Alliance News) - CYBG PLC said Tuesday its wholly owned subsidiary, Clydesdale Bank PLC, has signed a joint venture with fintech platform Salary Finance Ltd.

CYBG said it hopes the partnership will "add an innovative channel" to Clydesdale's personal lending. Clydesdale is acquiring 50% of the joint venture for GBP500,000. Salary Finance is entering the partnership under the same terms.

Clydesdale will provide a six-month rolling credit facility for the joint venture, for an initial total commitment of about GBP100 million.

Salary Finance provides loan origination and management, marketing, cash management and other corporate services to employees through the payroll services of employers.

"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," said CYBG Chief Executive Officer David Duffy.

Shares in CYBG were up 1.3% Tuesday at 194.90 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
CYBG PLC 194.05 GBX -1.47
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