Open finance and open data fintech firm Moneyhub has secured an initial £35m ($39.5m, €40.3m) in funding from Legal & General and Lloyds Banking Group.
The firm has also obtained an additional £5m debt facility provided by Shawbrook.
Lead investors Legal & General and Lloyds Banking Group will take minority stakes in the business. Both companies 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 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 funding will help the firm grow internationally.
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 firms Direct Line Group, and Esure, and founder of investment vehicle SPWOne.
Legal & General’s investment is partially subject to regulatory approval.
Change in open data thinking
Samantha Seaton, chief executive of Moneyhub, said: “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.”
Wian Pieterse, fintech managing director at Legal & General, added: “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, said: “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.”
