Harvard study hails impact of Salary Finance

May 2018

A research paper released by the Harvard Kennedy School concludes that employers can reduce their employee attrition rate by 28% if they use SalaryFinance. And, in what it describes as a ‘win-win’ situation, employees can also reduce the interest on their loans by around 2/3 compared to other finance available.

Salary Finance’s vision is to move people from debt to savings. It’s been one of Blenheim Chalcot’s fastest growing businesses helped by a £40m investment round led by Legal & General last year. As it now prepares to enter the US market, the team opened up their data to Harvard Kennedy as part of their study into the impact of so-called ‘salary link’ repayments for loans to help the “50 million Americans in low-income working families are financially stressed”.

In what was a glowing assessment of the impact that Salary Finance could have, the paper states that employers such as Target could save around $160m a year through reduced attrition rates. The impact for the low-income individual is no less impressive as they are often forced to take loans with rates that are “5 to 17 times the 11.8% Salary Finance weighted average APR”.

To find out more about how the salary link works read the full report ‘The Power of the Salary Link’.

Salary Finance, CEO,  Asesh Sarkar gives some more background to the paper here.

A number of Blenheim Chalcot portfolio companies are using technology to improve access to finance including ClearScore (helping people understand what finance they will be accepted for), Liberis (a small business finance provider), Oakbrook (through its consumer-facing brand Likely Loans), OpenWrks (providing businesses access to better underwriting data through Open Banking) and, our newest venture, Fair Way Forward, which will help people take control of their budget and secure their financial future.

It’s great to see this Harvard study confirm the positive impact that SalaryFinance can make for both employers and employees. We’re confident our portfolio of businesses can make a huge impact together.


Dan Cobley, Partner at Blenheim Chalcot

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