CYBG (ASX:CYB) company Clydesdale Bank has announced a joint venture FinTech platform, Salary Finance.
Under the terms of the deal Clydesdale and Salary Finance will each acquire a 50 per cent stake in the joint venture for consideration of £0.5m each.
Salary Finance's FinTech platform connects to the payroll of participating employers to provide financial wellbeing benefits to employees.
The joint venture is complementary to CYBG's existing product plans and will provide an opportunity to develop CYBG's unsecured loan business within risk appetite.
CYBG says the joint venture adds to its growing range of partnerships – with over 40 per cent of UK customers regularly using FinTech services.
Shares in CYBG (ASX:CYB) closed 0.28 per cent higher to $3.53 yesterday.