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Munnypot Announces Strategic Partnership with Capita

Robo advisor and FinovateMiddleEast 2018 alum Munnypot has picked up a new investor. Capita announced late this week that it would take an equity stake in the company and will license Munnypot’s technology for its own clients. The amount of the investment was not disclosed, but the company said the funding gave Capita a minority holding in the firm and Capita emphasized the strategic nature of the partnership.

“We are enabling our financial services clients to address the growing digital savings market in an effective way, helping a dynamic startup to achieve critical mass and create sustainable U.K.-based digital jobs,” Capita CEO John Lewis explained. “We’re continuing to innovate and strengthen the digital platforms we offer to our clients to deliver real value and create future sustainable growth.”

Munnypot’s robo advisor platform is designed specifically for those who typically are unable to access financial advice due to the cost or investment minimums they cannot meet. At a price point similar to other online, self-serve robo advisory solutions, Munnypot leverages chatbot technology to help clients make investment decisions that match their appetite for risk and best enable them to meet their financial goals.

In addition to helping new investors, Munnypot offers more experienced investors an alternative to traditional financial advisors that can result in savings of as much as 75% on ongoing yearly fees and 75% on upfront advice fees. With a minimum investment of £250, Munnypot’s one-off upfront advice fee upon setting up the customer’s “pot” starts at £5 with a monthly monitoring fee starting at £0.42p. Fees top out at £500 for the one-off fee for accounts over £100,001, and £41.66p for monthly monitoring. The B2B solution is FCA-regulated and available as a white label solution.

Munnypot CEO Andy Fay said the new partnership with Capita was a “significant milestone” for the company. “Clients can now transact with us, knowing that we’re still the same independent, innovative, agile business but with the comfort of knowing we have the support of Capita plc as a shareholder,” he said.

Founded in 2015 and headquartered in Crawley, U.K., Munnypot demonstrated its robo advisory platform at the inaugural FinovateMiddleEast in February. Earlier this year, the company partnered with major Danish bank, Jyske Bank, becoming Munnypot’s first European white label customer.