Moneyhub, the open finance, open data and payments platform, has bagged £55million in a funding round as it reveals ‘exciting plans for 2023’.
The company has completed its largest fundraising round, after securing a £15million investment from savings and retirement business Phoenix Group. Moneyhub also received a £35million investment from Legal & General and Lloyds Banking Group. An additional £5million debt facility came from UK-based commercial bank Shawbrook Bank.
The Moneyhub investment supports the acceleration of the development of its solutions. The money is to also support the expansion of Moneyhub’s ‘border-agnostic’ technology.
Samantha Seaton, CEO of Moneyhub, explained how the investment highlighted the need for the company’s solutions. Seaton commented: “This additional investment from Phoenix Group, following our long-standing commercial relationship with its Standard Life business, is further testament to the growing possibilities the industry sees in open data, and the transformational role Moneyhub can play.
“We are delighted that Phoenix Group has chosen to go even further by investing in the business. With Consumer Duty and Pensions Dashboard driving the need to focus on consumer outcomes, the only answer is to work in a trusted data-sharing approach with your customers.
“Since the beginning, Moneyhub has been a trailblazer and at the vanguard of the data and payments revolution. Our market-leading open data solutions have the ability to help businesses with their growth objectives, while in turn improving the financial lives of their customers.”
On LinkedIn, Seaton added that the Moneyhub investment sets the company up to deliver “exciting plans for 2023 and lead more people to the fields of financial wellness”.
Supporting firms with Consumer Duty compliance
Moneyhub’s open finance technology looks to enable financial services businesses to ensure compliance with Consumer Duty.
In July, the Financial Conduct Authority (FCA) laid out new Consumer Duty legislation. The regulations aim to stop rip-off charges and fees and make it as easy to switch or cancel products as it was to take them out in the first place. The legislation also plans to stop key information only being included in lengthy terms and conditions. The introduction of these rules looks to make information more easily accessible to consumers.
In an open letter to CEOs, Seaton said: “Consumer Duty certainly presents an alarming array of demands and challenges, but it also presents an even broader array of opportunities. Providing data-driven insights that can underpin individual, personalised propositions like this is at the heart of what Moneyhub does.”
Moneyhub’s pensions dashboard
June 2022 saw Moneyhub connect its pensions dashboard with the central digital architecture developed by the Government’s Pensions Dashboards Programme (PDP).
Following this, the open finance platform also launched its ‘Pension Finder’. The feature automatically identifies gaps in retirement savings by analysing savers’ career histories on LinkedIn. The October launch came after the UK government found that people have an average of 11 jobs in their careers. Because people are now auto-enrolled into pension schemes for each one, Moneyhub released its solution.
The feature was launched ahead of the government’s PDP, which is expected to begin its rollout in 2024. Pension Finder allows people to see their full pension, to make retirement plans more easily.