Moneyhub makes your money work harder

by Megan Roelofs
Posted on June 26, 2019

“We could all free up an extra 10% of our disposable income if we had the time, skill, and information to do it”, according to Dan Scholey, COO of Moneyhub. Unfortunately, too often one of these three elements misses. That is where Moneyhub comes in as it offers a wide variety of applications that ultimately aim at making the principles of making and understanding money easy for everyone.

Moneyhub offers a collection of tailor made applications for banks, insurance providers and even retailers. All of these applications are aimed at Moneyhub’s mission to improve the financial wellness of consumers, communities and businesses. Examples of such applications are helping people set up a budget if they are in debt, analyse where people’s money leaks are and help you pay off your debts. However, Moneyhub does not only focus on people with lower incomes: “If you’re wealthy, no matter what investments you have, we can help you keep on track, help you understand where your investments are and how they are performing. Then even with your permission, depending on the partners we’re working with, take action for you.”

Based on these two examples, it is no surprise that Moneyhub serves a wide target audience. They are capable of delivering products to such distinct groups because they focus on B2B2C: “We find that when working with enterprise partners, we can tailor our solutions to match their target audience. For example, an employer might want to use Moneyhub to reduce financial stress among its employees. There are lots of statistics about how time and productivity is wasted due to people doing their financial administration at work. Or even just worrying about them. By giving his employees the tools to manage that, it helps the employees and eventually the business itself performs better as well.”

“He used Moneyhub to calculate how much the daily charge had cost him over the years and realized it was more than the actual overdraft itself.”

The Moneyhub lady
Scholey explains that it are actually the little stories that show him in what ways money leaks from people’s accounts. A recent example comes from the CEO of Moneyhub, Samantha Seaton: “At 4 o’clock in the morning our CEO Samantha is taking a cab on her way to a TFI event. Her taxi driver recognizes her as the Moneyhub lady and shares that he recently downloaded Moneyhub and noticed this weird, little charge of a few pence every single day. It was a daily charge from the bank for an overdraft he had on an account he had forgotten all about. He used Moneyhub to calculate how much the daily charge had cost him over the years and realized it was more than the actual overdraft itself. He quickly paid off his debt and eliminated the interest. It was not that he couldn’t be bothered thinking about his finances, he just simply forgot that the account was there. Then, as a thank you he gave Samantha the taxi ride for free.”

A pyramid of action
Although Moneyhub produces many different products, they are all produced with the same ‘pyramid of action’ in mind. Scholey sees these three principles as part of a pyramid of action with three layers. Every layer is needed to support the other and complete the shape: “The basic layer is getting all the data in the right place. Moneyhub helps people get access to their own data and we help them understand it by making it more relevant to them. The second layer of the pyramid focuses on giving insights to the user. We want users to think about: where does my money go and where does my money come from? What can I do differently? ” Lastly, the top layer of the pyramid is occupied with making it easy to take action, so your finances automatically optimise to your lifestyle and aspirations. “With the help of machine learning, we predict what will happen, optimise your finances around that. After receiving one’s permission, we can sweep money from an account that got lots of cash drainage and other places where money just disappears. Or we can move your money so it works harder for you.”

The overarching goal of this pyramid of action is helping users to manage their personal finance. Moneyhub helps with this whilst simultaneously being a neutral arbiter of your finances: “We are not telling you how to behave. Have fun spending €200 on an amazing night out if that is what makes you happy. The consequence of that might be that you cannot go on a €1000 holiday. But that is your choice to make. We help make you make that decision.”

Changing the financial industry
To truly understand Moneyhub’s societally added value, its work should be seen in context of their vision on the financial system. Scholey argues that the financial industry could have been much more customer centric in the past. Luckily, this is now finally changing. He believes that financial institutions have much to win when it comes to acknowledging that customers have real goals and aspirations: “We’re going to see much more customer-led activities. We need to much more holistically look at what is going to be beneficial to the customer and how organisations can help them achieve their goals.” Scholey then illustrates this expected change with an example: “At the moment, the entire system is dependent on credit scores. Two people can look identical on paper and get the same credit score. But actually, what you cannot see is how they are living their life. Person A might neatly pay his rent and save money in his account, whereas person B might have terrible spending and saving habits but just happens to have rich parents that will provide for a deposit for a house. On paper, they score identically. But from a financial behavioural perspective, that person who acts more responsibly ought to be able to use that as leverage to get a better deal. When using Moneyhub, one’s financial behaviour can actually get measured. That is the future, it’s where we are heading.”

“We need to much more holistically look at what is going to be beneficial to the customer and how organisations can help them achieve their goals.”

TFI Growth Track
Despite being somewhat older than the usual start-up, Moneyhub learned much from the TFI Growth Track: “I’ve worked with quite large companies, so a lot of the things covered in TFI, are things I’ve done before in previous companies. But I forgot how beneficial it is. I forgot how amazing it is to sit with someone with a lot of experience, and get coached towards coming up with a solution. We would share ideas on how to do things differently, or how to scale, it was just amazing.” Not only the experts, but also the other startups were a perk of partaking in the TFI Growth Track: “Nearly every single time that I’ve participated, one of the start-ups had something big to celebrate. Whether that was closing in a big deal or securing funding, every single time one of these companies was in the middle of celebration. The positivity really helps keep motivations high.” Lastly, the most convincing reason to join was its alignment with TFI’s mission: “The ambition of TFI is exactly aligned to that of Moneyhub. To help all those people be financially better off, it is exactly what Moneyhub is all about.”

The future
Although they are currently only focused on the United Kingdom, many more regions are on their wish list: “We have a couple of enterprises that want to work with us to go international. That’s likely to be Europe first as we already have regulatory permissions there, but we’ve also got eyes on Japan, the United States, Australia and some other places as well.” For the future, Scholey is eager to put a number on it: “Ultimately, I want to reduce financial administration of at least another 2 million people over the next couple of years. I want 2 million people telling their friends that we have helped them towards a life goal and that we have truly helped them save time and money.”

Want to know more about Moneyhub? Check our selected start-ups page or their LinkedIn, Facebook or Twitter!