Credit score fintech TotallyMoney raises £9m to support next phase of growth
TotallyMoney, the free credit score service and personal finance app, announced additional funds of £9 million raised through existing investors in the UK and the US.
The latest investment comes at a time of huge growth in the consumer credit sector. TotallyMoney’s unique focus is on the ‘under-served’ – those who are just about managing and find it hard to plan their finances – which is currently c.25 million UK adults. This segment is growing by the day: consumers face continued financial pressures due to Covid-19 and a developing cost of living crisis driven by a hike in interest rates, rising inflation and growing food and energy bills. TotallyMoney’s research of its customer base found that 61% are worried about their finances, 57% about their debts and 43% about their eligibility for credit. Despite this, this audience shows a preference for engaging digitally with financial services in order to improve their financial position.
TotallyMoney uses multiple data sources to help customers understand, track and improve their credit score, offering tailored solutions and making personalised recommendations. It works closely with lenders to develop new features, and ensure customers are pre-qualified and matched with the right product.
With four million customers, the business will now further benefit from changing market forces: awareness of the importance of financial management has critical mass as the pandemic increased financial vulnerability. There is also significant headroom for growth in the market, with credit card balances falling 19% in 2020 as consumers repaid £16.6bn of credit, and Covid has accelerated digitisation with more financial decisions being made online.
The latest funding will be used by the business to drive product development and support digital and TV advertising, as well as building a team to launch future propositions – including harnessing Open Banking partnerships to further build its data capability.
Alastair Douglas, CEO of TotallyMoney said, “The number of people ‘just about managing’ with their finances is on the rise and millions are still underserved by the financial sector. We believe that people’s financial data should work for them, not against them. Our service provides our customers with the tools they need to understand their credit score and unlock more opportunities. Central to that is addressing a credit market that is not fit for purpose, and there is huge potential if we can collaborate across the industry to get that right. We’re excited about the next stage of this mission and delivering for our customers.