Wagestream, the market leader in workplace finance and wellbeing, has announced advancements to its Workplace Loans product. These developments, supported by the £300 million debt financing secured from Citi in April, directly address the issue of inaccessible credit, and reinforce Wagestream’s commitment to providing fair financial services to the everyday worker.
Recent research paints a stark picture: up to 30% of all UK adults struggle to access mainstream credit. Individuals with thin credit files and on low and/or variable incomes are most affected, their exclusion leaving them susceptible to products with high interest rates, hidden fees and punitive repayment terms.
Wagestream’s product, offered through employers as an employee benefit, has been specifically engineered to offer a fair, affordable alternative. Every aspect is designed to help users avoid missing repayments, representing a clear departure from traditional lending models that often penalise borrowers. Most importantly, for employers, the system eliminates administrative burden: payments are automatically reconciled within the payroll system, requiring no extra work for HR or payroll teams.
Key elements of the enhanced product include:
- Payment from salary: Loan repayments are settled directly from salary. This significantly reduces the risk of missed payments, and the negative impact on credit scores.
- Payday alignment: Unlike traditional lending products built around fixed schedules, Wagestream aligns repayments with individual pay schedules. This is particularly crucial for low and middle-income earners, who frequently experience fluctuating paydays, creating mismatches with traditional bill cycles.
- Repayment safeguards: A direct debit is set up as a secondary safeguard, offering an additional layer of security to ensure repayments are met.
- No hidden fees, ever: In a clear stand against unfair lending practices, Wagestream’s loans never incur additional fees such as origination, early or late payment fees.
Portman Wills, Co-Founder of Wagestream comments: “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. 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.”
Wagestream launched workplace loans in April 2024 as an early access programme. Following debt funding from Citi, the product is now available to its entire UK client base.
Read the orginal article: https://ffnews.com/newsarticle/funding/wagestream-transforms-workplace-lending-with-affordable-loans-product/
