Wagestream, a London-based fintech known for its flexible salary product, has officially rolled out its new workplace loan product to its UK client base.
The service, backed by a £300m debt financing deal from Citi, will allow businesses to offer loans to staff as part of their employee benefits.
The fintech conceived of the idea due to the large number of UK adults, around a third according to PwC, who struggle to access mainstream credit services.
Wagestream’s solution is an employee benefit offered loan that is repaid directly from the loanee’s salary, which the company claims reduces the risk of missed payments and impact on credit scores.
The loans are also not based on fixed repayment schedules, instead basing payments around the individual’s pay schedule.
“We are pioneering a new era of fair, responsible lending. By introducing features like no additional fees and repayments from salary, we are fostering genuine financial stability for millions,” said Wagestream co-founder Portman Wills.
“Our aim is to lead with industry superior features not commonly available through traditional financial institutions, to deliver on our mission of fair financial tools for the everyday worker.”
The fintech launched a trial of its workplace loan product in April 2024 and is now rolling out to its client base representing 2.5 million employees.