UK-based data and payment platform Moneyhub and financial app Pennyworth have partnered to roll out a financial planning service.
The tool has been developed by Pennyworth – who has applied for a UK banking licence – which will leverage Moneyhub’s APIs.
The service will use a combination of open banking, open finance and machine learning to turn clients’ financial goals into a customised plan and will track their progress against those targets.
It is aimed at investors within the “aspiring affluent” segment – those with salaries between £40,000 and £150,000 ($179,100, €176,700) – as the firms believe they would “benefit from financial guidance [since they] are not wealthy enough to be taken on as clients of wealth management firms or private banks”.
On top of that, Pennyworth said traditional banks offer very limited financial planning support. According to the two firms, the partnership aims to “democratise financial planning” and fill the value and advice gap.
Sam Seaton, chief executive of Moneyhub, said: “Setting and achieving financial goals should not be the preserve of the super-rich: everyone should be able to make the most of their money.”
Jeremy Takle, chief executive of Pennyworth, added: “Pennyworth was founded to help solve the personal finance problems of aspiring-affluent customers by bridging the value and advice gap and Moneyhub’s cutting edge technology helps us achieve that goal.”
