Online Lenders, Podcasts

Using fintech to improve financial wellness with Salary Finance’s Dhiren Master

  • Employees with financial worries aren't as productive or engaged.
  • Salary Finance works with employers to help their people get out of debt and start saving.
close

Email a Friend

Using fintech to improve financial wellness with Salary Finance’s Dhiren Master

Financial wellness is a popular topic as firms better understand that employees are happier and more productive if they’re less stressed out about money.

Salary Finance is a leading firm in this space, providing salary-linked employee benefits. Employees can get a loan, start saving or get an advance on their salaries. Turns out, retention, productivity and employee engagement goes up with better financial wellness. Salary Finance is active in the UK and US.

CMO of Salary Finance, Dhiren Master is my guest today on the Tearsheet Podcast.

SubscribeiTunes I SoundCloud I Spotify
The following excerpts were edited for clarity.

The genesis of Salary Finance

Salary Finance was set up with a social purpose: to work alongside employers to develop financial wellbeing via salary-linked loans and savings products. Our aim is to help people around the world to get out of debt and into savings.

This is absolutely a substitute to payday loans. It’s designed for people who find it difficult to make ends meet. We currently serve employees on hourly and monthly salaries.

How people get into financial trouble

The typical problem that most people have is when they miss a couple of payments on a loan. Your credit scores drop dramatically and you lose your ability to access cheap finance. Some banks won’t lend. If you do get approved for a credit card, it will be a small limit and a high APR. If you get into financial trouble, the only thing left is a payday loan because you’re a high default risk.

With a salary-linked loan, the risk of default decreases because we deduct the loan repayment directly from a paycheck. So, you get paid and we get paid at the same time. Technically, the only way you can default is by quitting your job and cancelling the direct debit with the bank.

Because we offer this through the employer, our marketing costs are lower. So, we’re able to pass on the benefits of these lower costs in the form of lower interest rates. That’s how the business model works.

The employers that end up being our clients emphasize financial wellness in their organizations. We’ve done two large surveys in the US and UK. In both markets, there’s a high degree of financial worry. Those worries lead to sleepless nights. This has an impact on the quality of their work and their relationships with coworkers. It’s a loss of productivity and an increased churn rate. Employers that understand the link between financial wellness and productivity and retention come to us to help develop their financial wellness strategies.

How Salary Finance differentiates itself

We started in the UK four years ago. We opened in the US during the summer of 2018. We’ve been recognized in the UK as the most socially responsible business of the year. We’ve also won a couple of rewards for innovation. We are first and foremost focused on getting people out of debt. Our rates are competitive.

We’re constantly innovating in new products. We started with our borrow product — loans for debt consolidation. Then we introduced save and advance. We also provide financial education. In the UK, we’re the only one with the full suite of solutions.

How Salary Finance integrates with an employers

From the time of agreement to launching can be as quick as a week. There’s an information security process to start. Then, we need to do payroll integration, which is a relatively straightforward task. We agree on how much data to share and train up the payroll people. We work like other employee benefits which come as payroll deductions. Implementation is relatively quick and hassle-free.

Our clients see this as a way of helping their employees’ financial wellbeing. They do a lot of communication with employees about how we can help them. When we’re part of an overall financial wellness program we have the highest levels of engagement with our products.

0 comments on “Using fintech to improve financial wellness with Salary Finance’s Dhiren Master”

Outlier OpinionsMakers

Podcasts

‘Our bet is that ESAs will be similar to the last 20 years of HSAs’: SecureSave’s Devin Miller

  • SecureSave is trying to popularize the Emergency Savings Account, which functions similar to a Health Savings Account and is intended to help employees save for an emergency.
  • Devin Miller is a co-founder of SecureSave and is following the HSA playbook for bringing his firm and ESAs to market.
Zachary Miller | December 08, 2022
Podcasts

Steez Podcast #2: Gen Zers and the creator economy

  • Today’s episode is all about the creator economy. Host Rebecca Cohen was joined by Tony Tran, CEO of Lumanu, Blake Michael, Creator with 5M+ followers, actor and entrepreneur, and Julia Montgomery CEO and founder of Influent.
  • The industry is light years behind conquering the Gen Z mindset. That’s why we’ve partnered with Publicis Sapient to create #STEEZ, a hub for finserv potentials to learn more about Gen Z and what it means to capture and delight them.
Tearsheet Editors | December 07, 2022
Podcasts

How FNBO built Bend, an in-house credit card as a service offering with Marc Butterfield

  • Stories about a traditional institution evolving into something new are compelling – it’s just really hard to do.
  • FNBO’s Marc Butterfied joins us on the podcast to discuss Bend, the bank’s in-house credit card as a service offering, and its work with Greenlight to launch a credit card used by families and kids.
Zachary Miller | December 05, 2022
Payments, Power of Payments Podcast

Power of Payments Ep. 19: Stripe’s Josh Ackerman on the changing nature of online checkout

  • Josh Ackerman, Product Lead at Stripe, joins host Ismail Umar on this week’s podcast.
  • He talks about the existing gaps between consumer expectations from online checkout and what most merchants currently offer, as well as how the checkout experience has evolved over the years.
Ismail Umar | December 02, 2022
Green Finance, The Green Finance Podcast

The Green Finance Podcast Ep. 14: COP27 – is finance ready to move from pledges to implementation?

  • COP27 ended around a week ago, and by now we've all probably seen the headlines – an agreement was finally reached to create a loss and damage fund. But what about GFANZ?
  • To help us get a better sense of what happened at the conference, today we're chatting with Lubomila Jordanova, the founder and CEO of PlanA.
Iulia Ciutina | November 30, 2022
More Articles