Goldman Sachs has made its first investment into the British consumer lender market with £100m ($133m) in Neyber

Neyber is a fintech that provides loans that are repaid out of people’s salaries. Founded by two former Goldman Sachs investment bankers five years ago, Neyber partners with companies to offer their employees loans at lower rates than credit cards or payday lenders.

The company says its loans are less likely to default because deducting repayments directly from a borrower’s salary is said to be more secure. In addition, extra information is gained about its customers by tapping into their employer’s payroll systems.

The investment will make Goldman a minority investor in Neyber behind the its founders, Wadhawan Group, an Indian financial services company that led a £21m funding round last month, and Police Mutual, a founding investor.

As well as its current services, Neyber hopes to launch a savings product by bundling loans into a tax-free ISA offered to employees seeking higher returns on their money.

It sorts borrowers into three categories, charging ‘great’ customers 4.9% annual interest, ‘good’ customers 6.9% and ‘OK’ customers 9.9%.

So far, Neyber claims to have saved customers £14m in interest payments.