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Moneyhub to pilot ‘automated financial planning’

Moneyhub to pilot ‘automated financial planning’
Photo by ALEX PLAVEVSKI/EPA-EFE/Shutterstock

Moneyhub is gearing up to ‘automate’ financial planning later this month, claiming the service will be a “big leap forward” from most other money management apps on the market.

The fintech firm currently uses open banking to provide financial firms with services such as data aggregation, a pensions dashboard (which is still in testing), and app nudges, among other things.

The automated financial planning service will be provided through a partnership with fellow fintech firm, Wyzr, which has already used Moneyhub’s sandbox to test it.

Data will be gathered via Moneyhub’s application programme interfaces, and then sorted through Wyzr’s categorisation engine in order to label transactions, total expenditure, set finance goals and calculate people’s financial carbon footprints.

The Bristol-based firm said the pilot will kick off later this month. Wyzr is able to identify purchases in retail stores in November and December as Christmas shopping, or payments for plane tickets, car hire and hotels as holiday expenses, adding a seasonal element to what current money management apps can do.

Users will then get access to automated savings goals and budgets as part of their financial plan each month. 

“That is a big leap forward from most other money management apps on the market, which require users to figure out how much they spend on each category instead of working it out for them,” Moneyhub said in an announcement today (April 20).

Unlike some money management apps, Wyzr enables users to track their carbon footprint from everyday spending, offering tips for how to offset and reduce it. This service, Moneyhub said, uses machine learning.

Some apps, such as Yayzy, already offer a carbon offsetting service to consumers.

“Having the full picture of your finances is the first step on the road to financial wellbeing and a more prosperous future,” said Sam Seaton, chief executive of Moneyhub.

The fintech boss added: “It’s been a delight to partner with Wyzr to bring the power of open banking to the world of financial planning, enabling financial knowledge to become the basis of a powerful solution to increase savings.”

ruby.hinchliffe@ft.com