Exclusive: Moneyhub shutters D2C business, lays off “around 30%” of UK workforce
Open finance and data platform Moneyhub is set to shutter its direct-to-consumer (D2C) app business, a move that will also see the company reduce its UK workforce by “around 30%”, FinTech Futures can reveal.
Moneyhub to shutter D2C app business, job cuts commence
Staff were informed of the layoffs on Tuesday this week, which has led to the elimination of “approximately 36 positions”, sources with knowledge of the matter told FinTech Futures, asking not to be named discussing inside company information.
The company’s D2C proposition, which is spearheaded by the Moneyhub app, will be closed down gradually “over the next 18 months”, sources say, coinciding with the expiration of existing paid subscriptions.
They state that Moneyhub has stopped accepting new customers for its app with immediate effect, although at the time of writing, the offering appears to still be listed as available on app stores.
Moneyhub is now redirecting its focus entirely on its B2B proposition, which currently includes a white-label engagement platform, open data APIs, and credit decisioning and payment solutions, among others.
Moneyhub charts a new path forward
In a statement to FinTech Futures, Moneyhub highlighted its “significant growth” over the past year, a period that also saw the CEO transition from Samantha Seaton to former Broadridge GM Alastair McGill, who took on the role at the end of January.
“Our business performance remains strong and we are expecting to report that we’re sustaining a revenue CAGR exceeding 35%,” the company says.
The statement continues: “Our growth has been driven from the B2B sectors we serve; Banking, Lending and Collections, Consumer Finance, Pensions and Insurance. To better focus on these growing B2B markets we have decided to withdraw from our direct-to-consumer app business.
“As we transition our business we are restructuring the company to reflect the more targeted focus and in recognition that not every market we’ve pursued has matured as quickly as anticipated.
“As a result we have regrettably reduced the size of our Moneyhub team. Earlier this week we took the unfortunate step of advising a number of our colleagues that it was with deep regret that we were terminating their roles.
“This step was not taken lightly and we recognise that everyone affected contributed to Moneyhub’s success and we are grateful for their contributions. We are supporting them as far as possible as they seek their next opportunity.
“For our customers that use our retail app there is no immediate impact to them. Our withdrawal from the consumer market will be slow and as non-disruptive as possible.
“All subscription agreements will be honoured in full and we’ll provide an extended free of charge period to allow a lengthy transition period. As such the app will be available for at least the next 18 months.
“Additionally, we are discussing potential migration paths to allow our consumers the option to continue to manage their financial wellbeing on alternative apps.”
