An Edinburgh-headquartered personal finance app has hailed a record year, doubling annual revenues and boosting user numbers by almost a third, as it gears up for a further round of fundraising.
Money Dashboard has announced group sales are on track for a 100 per cent increase to more than £1 million, following the addition of a “fast-growing” revenue stream in the form of anonymised consumer spending insights, the customer base of which includes a number of asset management firms.
The service has seen its customer base increase 30 per cent to some 175,000 active users. In September, it celebrated the landmark figure of achieving more than one million linked bank accounts to its app.
The company generates revenue by creating market research from anonymised bank statement data, for example, by helping hedge funds predict revenue announcements of listed companies.
During the last year, Money Dashboard has expanded its footprint by launching a London office and increasing its overall headcount to 20 staff, including the appointment of new chief technology officer Tim Shields.
Chief executive Steve Tigar said the firm is actively planning a significant capital raise in the first half of 2019 to build on the success of the past 12 months.
He said: “Following last year’s successful crowdfund, we’ve grown the team this year, upped the user base, doubled revenues and are now beginning to realise the value from our consumer spending insights team.
“We are close to announcing a major industry partnership and are actively considering a number of options for additional growth capital in 2019.”
In 2017, Money Dashboard raised £1.4m in equity crowdfunding via the Crowdcube platform, including from more than one thousand users of its app.
Tigar added that the personal finance market offers further opportunity for the likes of Money Dashboard, as a direct result of the new UK Open Banking rules, which require banks to give third parties access to their customer data if account holders agree.
He said: “The adoption of online tools like Money Dashboard is building momentum in the UK and is set to catch up with countries like the US, where millions of consumers use comparable apps to help manage their finances.
“Research shows that 40 per cent of adults in the UK don’t feel in control of their finances and as many as 20 million people don’t feel they have an approach to budgeting that works.
“Open Banking presents a significant opportunity for services like ours as it provides a safe and secure way for consumers to get on top of their finances and lead happier and more successful lives.”
“An array of new services are emerging from account aggregation providers that will empower consumers to find the best deals on products like loans and mortgages, while making bank charges more visible and allowing much better comparison against the competition.”
The company, founded by fintech entrepreneur Gavin Littlejohn, also won the 2018 British Bank award for best personal finance app.