Workplace borrowing receives an overhaul through Wagestream's introduction of budget-friendly loans.
Wagestream Introduces Fair and Flexible Workplace Loans for UK Workers
Wagestream, a financial technology company, launched its workplace loans in April 2024 as an early access program. These loans, designed specifically for UK workers, offer a reasonable and flexible alternative to traditional lending models.
The key feature of Wagestream's enhanced product is that loan repayments are settled directly from the salary of the borrower, reducing the administrative burden for HR and payroll teams. This salary-linked repayment system helps accommodate irregular or flexible pay cycles and provides flexibility for low and middle-income earners with fluctuating paydays.
Unlike traditional loans, Wagestream's product does not impose additional fees such as origination, early, or late payment fees. The loans are designed to foster financial stability and fair lending, making them a more attractive option for those who often struggle to access mainstream credit.
A direct debit is set up as a secondary safeguard to ensure repayments are met, and the system is designed to help users avoid missing repayments. Wagestream's mission is to deliver fair financial tools for the everyday worker, and it aims to lead the industry with superior features not commonly available through traditional financial institutions.
Following debt funding from Citi, Wagestream's product is now available to its entire UK client base, representing around 2.5 million employees. This £300 million financing deal has enabled the broad rollout of Wagestream’s Workplace Loans across its client base.
Up to 30% of UK adults struggle to access mainstream credit, and individuals with thin credit files and on low and/or variable incomes are most affected by credit exclusion. Wagestream's loans provide a much-needed solution for these individuals, offering reasonable, salary-deducted repayments that do not negatively impact credit scores.
Portman Wills, Co-Founder of Wagestream, stated that the company is pioneering a new era of fair, responsible lending. Wagestream's product represents a departure from traditional lending models that often penalize borrowers, and it is designed to foster genuine financial stability for millions.
References:
[1] Wagestream. (2024). Wagestream raises £300m to expand its salary-linked financial products to 2.5 million UK workers. Retrieved from https://www.wagestream.com/press/wagestream-raises-300m-to-expand-its-salary-linked-financial-products-to-2-5-million-uk-workers
[5] Wagestream. (2024). Wagestream Workplace Loans. Retrieved from https://www.wagestream.com/products/loans/workplace-loans
- In light of the announcements made by Wagestream, a financial technology company, it appears that their workplace loans, now available to all UK clients following a £300 million funding from Citi, are revolutionizing the finance industry by offering fair and flexible loans specifically targeting UK workers.
- As suggested by Portman Wills, Co-Founder of Wagestream, their innovative product represents a significant departure from traditional lending models, ushering in a new era of responsible and fair lending, which is expected to provide substantial benefits to millions of UK workers, particularly those struggling to gain access to mainstream credit.
