Moneyhub, a UK-based fintech firm backed by Lloyds, Legal & General, and Phoenix Group, has announced the closure of its direct-to-consumer (D2C) app. The company, known for its open-banking-powered financial management platform, has decided to shift its focus entirely to its business-to-business (B2B) operations. As part of this transition, Moneyhub is restructuring its workforce, resulting in job reductions. The decision follows broader shifts in the fintech sector, where companies are reassessing their business models amid evolving market dynamics.
In previous years, Moneyhub positioned itself as a consumer-focused financial management tool, enabling users to consolidate their financial data across multiple accounts. However, the competitive landscape and slower-than-expected market growth for consumer-facing fintech products have influenced the company’s decision to concentrate on B2B services. Other fintech firms, such as Vyne, have also recently withdrawn from certain markets, reflecting the broader industry trend of reassessing product offerings.
What Led to Moneyhub’s Decision?
Moneyhub stated that its growing B2B business was a key factor in discontinuing the consumer app. The company offers financial services solutions to institutions in investment, pensions, savings, and banking engagement. To align with this shift, Moneyhub is making strategic structural changes, including workforce reductions. The company did not confirm the exact number of layoffs; however, reports suggest that approximately 30 percent of its employees have been affected.
How Will the Transition Affect Users?
The consumer app will be phased out over the next 18 months, allowing users time to transition away from the service. Moneyhub has not yet provided details on whether users will be offered alternative solutions or partnerships with other financial management platforms. The company emphasized its commitment to supporting employees impacted by the restructuring.
Moneyhub explained its reasoning in a statement:
“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.”
The move follows the appointment of Alastair McGill as Moneyhub’s CEO earlier this year, replacing Samantha Seaton. Leadership changes often signal strategic shifts, and this restructuring aligns with a broader industry trend where fintech firms are prioritizing enterprise services over direct consumer offerings.
Moneyhub secured £55 million in funding in 2022, primarily through equity investments. Its backers, which include major financial institutions, indicate confidence in its B2B prospects. As open banking regulations evolve and financial institutions seek digital solutions, Moneyhub’s pivot to B2B may position it for long-term stability.
The closure of its D2C app marks a significant shift in Moneyhub’s strategy, reflecting challenges in scaling consumer fintech products. Many fintech firms have faced similar challenges, as open banking adoption has been slower than anticipated in certain markets. For consumers, the transition underscores the importance of evaluating financial management tools for long-term viability. As fintech continues to evolve, companies may increasingly prioritize B2B models to ensure profitability and sustainability.
