Monday, June 17, 2024

Moneyhub kicks off funding round with initial £40 million from Legal & General, Lloyds Banking Group and Shawbrook Bank

Moneyhub, a market leading Open Finance, Open Data, and payments platform, today announces that it has secured an initial £35m in funding from high profile backers Legal & General and Lloyds Banking Group, with an additional £5m debt facility provided by Shawbrook. Legal & General’s investment is partially subject to regulatory approval.

Lead Investors Legal & General and Lloyds Banking Group will take minority stakes in the business. Both Lead Investors will also each look to enhance their commercial propositions with Moneyhub’s services, using its Open Data technology to support strategic goals.

The investment will help to accelerate the ongoing development of Moneyhub’s solutions, including those around pensions and wealth, payments, distribution, affordability, and Data-as-a-Service. While Moneyhub is already present in several countries, the new funding will expedite the internationalisation of its highly scalable and border agnostic technology.

The Lead Investor funding forms part of a larger raise which has been sought to support the continued acceleration of Moneyhub’s growth across its spectrum of Open Banking, Open Finance, and Open Data solutions. Moneyhub has been rapidly growing across its chosen fields through understanding and delivering for its clients, and this funding will allow it to deliver further transformational expansion of its proposition, extend its capabilities and improve its global client reach.

This is Moneyhub’s largest funding round to date and follows a fundraise in early 2021, led by Sir Peter Wood, founder of the technology-based insurance disruptors Direct Line Group, and Esure, and founder of investment vehicle SPWOne.

Moneyhub works with over 100 clients helping them to unlock opportunities by creating personalised products and services aimed at putting customers at the heart of the business in order to boost revenue, drive innovation and reduce costs. Moneyhub currently has over 30 high-profile enterprise clients within financial services, retail, and telecoms including Aon, KPMG, Mercer, Nationwide Building Society, Samsung, and Vodafone reaching 150 million end-users across the UK and worldwide. Moneyhub works with each client on an individual basis to ensure the technology explains and accelerates their unique capabilities and strategic aims. Moneyhub is well-placed to support financial services clients meet and benefit from upcoming Consumer Duty legislation, as well as supporting customers through the cost of living crisis.

Samantha Seaton, CEO of Moneyhub comments: “We are delighted to be working with Legal & General and Lloyds Banking Group and their recognition of the fabulous opportunity that Moneyhub presents to not only them but the clients we currently serve, as well as the wider market. Their new investment helps us signal a step change in the way the financial services industry thinks about Open Data and the possibilities it presents. Understanding and utilising customer transaction data for the benefit of the customer’s financial wellbeing not only helps businesses fulfil their consumer duty regulatory obligations, but also empowers them to create further opportunities.

“We’ve been at the forefront of the data revolution and are now the mature and trusted choice for businesses looking to make the most of its capabilities.

“Moneyhub has enjoyed significant growth over its lifetime, and this latest funding round will allow us to continue on this trajectory. I am extremely proud of the team at Moneyhub for their efforts in helping the business get to this point. I’m thrilled to be on this journey with support from Legal & General and Lloyds Banking Group, and so many talented individuals across the Moneyhub team.”

Wian Pieterse, Fintech MD, at Legal & General comments: “At Legal & General we believe data is key to helping customers make informed decisions and ultimately get better financial outcomes. Moneyhub is a leading provider in open data and so was an obvious choice for us to invest in to accelerate our commercial goals and support the growth of our Workplace savings business. Beyond the numbers, Moneyhub’s purpose, to improve financial wellbeing, fits well with our own purpose of building a better society to improve the lives of customers whilst creating value for shareholders. We see significant potential for a meaningful long-term relationship with Sam and her team and we are very excited to work with Moneyhub as they continue to grow.”

Kirsty Rutter, Fintech Investment Director at Lloyds Banking Group comments: “This investment in market leading Open Finance and Open Data, represents an important step for us at Lloyds Banking Group. This is the first fintech investment following the announcement of our new strategy earlier this year, which targets investment in technologies and partnerships that leverage data-driven insights to create value for customers

We are focused on identifying and exploring opportunities for investment into fintechs, and we are excited to work with Moneyhub to use Open Data and API technologies to help consumers improve their financial wellbeing, make our products more relevant to customers, and our channels simpler and more personalised to use.”

This deal was supported by Corporate Finance Advisors DC Advisory and Lawyers CMS.

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