For fintech businesses, changing operating model is a rite of passage. It is something they almost inevitably do sooner or later. There is even a name for it – pivoting.
MoneyHub Enterprise has recently done exactly this. Jettisoning all bar one of its previous operating models, it now focuses on the delivery of personal financial management services to financial institutions and advisers, who can use its services to support their consumer propositions.
This removes a number of conflicts of interest which might previously have made people question if it was the right supplier. The Blue Speck Media, Your Wealth and Momentum.co.uk services are no longer being developed. This is a brave decision but, I believe, the right one. The business is now lead by Samantha Seaton, who many people will know for the great work she did as a leading player at EValue.
MoneyHub operates in one of the most exciting parts of the financial technology market, personal financial management. Recently I have been doing a lot of research into this market, both in the UK and internationally. For two decades the big banks strangled the growth of the market in the UK but open banking is changing all that. In addition to UK solutions from people like Money Dashboard and Intelliflo, we are seeing global players like Moven and US specialists like Quovo starting to be very active, as well as a couple of other big players who are still in stealth mode.
Even with such strong competition MoneyHub has a lot to offer. It is a key player in open banking as a member of the steering group, so it has a really valuable understanding of how the services will roll out from January onwards.
Open banking and aggregation enable consumers’ banking information to help them make better financial decisions. I firmly believe advisers and long-term saving institutions are in a far better position to do this than banks. Banks want customers to run out of money before the end of the month so that you buy their expensive credit products, whereas advisers and product providers need the customer to have spare cash regularly at the end of the month in order to be able to save.