L&G and Lloyds invest £35m in fintech firm
Open finance and open data fintech firm Moneyhub has secured seed funding of £35m ($39.5m, €40.3m) from Legal & General and Lloyds Banking Group.
The firm has also secured an additional £5m debt facility provided by Shawbrook.
Main investors Legal & General and Lloyds Banking Group will take minority stakes in the business. Both companies will also look to enhance their commercial propositions with Moneyhub’s services, using its open data technology to support strategic objectives.
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 to grow internationally.
This is Moneyhub’s largest funding round to date and follows an early 2021 fundraising led by Sir Peter Wood, founder of technology-based insurers Direct Line Group, and Esure, and founder of investment firm SPWOne.
Legal & General’s investment is partially subject to regulatory approval.
Change in open data thinking
Samantha Seaton, CEO of Moneyhub, said: “We are delighted to be working with Legal & General and Lloyds Banking Group and their recognition of the fantastic opportunity Moneyhub brings not only to them, but to the customers we now 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 opportunities it provides. Understanding and using customer transaction data to benefit the customer’s financial well-being not only helps businesses meet their consumer obligations, but also enables them to to create further opportunities. We have been at the forefront of the data revolution and are now the mature and trusted choice for businesses looking to make the most of their capabilities.”
Wian Pieterse, managing director of fintech at Legal & General, added: “Beyond the numbers, Moneyhub’s purpose of improving financial well-being fits well with our own purpose of building a better society to improve the lives of customers, while creating value for shareholders. We see significant potential for a meaningful long-term relationship with Sam and her team and are very excited to be working 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 focuses on investing in technologies and partnerships that leverage data-driven insights to create value for customers.
“We are focused on identifying and exploring investment opportunities in fintechs and are excited to partner with Moneyhub to use open data and API technologies to help consumers improve their financial well-being, make our products more relevant to customers, and our channels easier and more personal to use.”
