If you are responsible for insurance within your scaling FinTech business or concerned that your cover isn’t keeping pace with innovation, it's important to ensure that your broker can work with you to understand your needs which are more than the price – you also need to know that, cover limits, policy wording, structure and exclusions are all designed to cover the specific needs of your business and sector.
This is why Moneyhub chose Capsule in 2023. Their previous broker had served them well enough in the company’s early stages, but as Moneyhub were scaling up they needed a broker with specialist knowledge of the FinTech space – one who could make sure that Moneyhub wouldn’t be caught out by generic policy wording or gaps in cover.
A bit about Moneyhub
Moneyhub is a UK-based financial technology company that’s raised £66M over 3 rounds of funding. Hundreds of companies use Moneyhub’s award-winning Open Banking and Open Finance technology to better understand their customers through data so they can comply with Consumer Duty, deliver them more suitable products, and automate money management or payments to ultimately increase their capacity to spend, save or invest more.
With customers including Aon, L&G, Mercer, Nationwide, Scottish Widows, Standard Life and Vodafone, Moneyhub sure knows how to scale.
Moneyhub needed an insurance partner who could support their growth. This is where Capsule came in!
Our impact at a glance
- Advised on and structured an insurance programme with specialist cover designed for a FinTech of Moneyhub’s calibre, client base and growth expectations.
- Worked with Moneyhub to ensure appropriate cover for their needs.
- Continued strategic insurance partnership through ongoing reviews and risk management development.
Moneyhub’s policies didn’t provide the cover they needed – we changed that
In 2023, Capsule worked with Moneyhub’s to review their insurance programme and agreed several areas that needed immediate attention:
- Financial services exclusion
One of the first steps we took in working with Moneyhub was to review their existing policies and highlight any exclusions that either didn’t fit their needs or could potentially leave them without cover.
We were able to negotiate for cover that contained no such exclusions – and had the appropriate limits for the financial services industry.
2. Insolvency exclusionAt early growth stages, startups often have an insolvency exclusion in their cover. They’re interacting as a growing business with other small businesses, and the risk of covering insolvency is too great.
This shouldn’t be the case after a company has scaled. Moneyhub was already a long way from that tenuous startup phase and growing quickly, and so it was time for that insolvency exclusion to be removed.
Capsule Cover represented Moneyhub’s reduction in risk, which meant their insurers were happy to remove the exclusion from their policy.
3. Policy wordingOne situation Moneyhub wanted to avoid was having policies that treated them like a general tech company, rather than as the FinTech they were.
It’s a surprisingly common situation – one that could mean you’re left thinking you have cover when you actually don’t. And it’s the result of working with brokers that aren’t specialists in what FinTech companies need, so they think they can use off-the-shelf wording.
We always tailor policies, FinTech or not. Whether a client needs to focus their policies around cyber threats, or make the wording suitable for Web3 services or space exploration, we know how to make their policies watertight.
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Moneyhub was journeying upwards – we’ve been there to support
So far, so good. But Capsule is about more than updating policies and identifying holes in a company’s cover – we’re partners for scaleups in their journey upwards.
As Moneyhub soon found, we were able to partner with them in broader risk mitigation and ongoing reviews and negotiations.
- Appointed Representatives
We don’t reserve our thinking for the insurance programme itself. With specialist knowledge of financial institutions and scaleup and FinTech risks, we’re able to assist with broader risk strategies.
For Moneyhub this meant recommending mandating insurance for Appointed Representatives. In doing this, we helped Moneyhub protect their customers in the event of making a claim while also reducing Moneyhub’s exposure to the regulators.
2. Quarterly reviews and ongoing partnershipIn the scaleup world, we always need to be on the frontfoot – considering our clients’ exposure before we’re asked and hustling on their behalf on an ongoing basis.
If an ongoing contract negotiation came up, or when Moneyhub signed contracts with other third parties, we were able to make sure they met the insurance requirements. By asking the right questions in our quarterly reviews, we could make sure that we were always thinking ahead for what policy tweaks Moneyhub might need.
3. 2024 premium savingsMoneyhub stuck with us through their 2024 policy renewal dates – and we were able to find them premium savings as a result.
We achieved that even though Moneyhub was growing over that time. Without the right cost management, it’s easy for insurance premiums to grow at the same rate as a company. But there’s no reason for that to be the case with the right broker.
''For an evolving business, the importance of insurance solutions aligned with its approach is important. Capsule has, with its extensive FinTech expertise, evaluated and customised Moneyhub's coverage to ensure it meets our exact needs with a focus on our innovative approach. Their exceptional support and strategic partnership have been instrumental in enabling us to grow with assurance and stability.''
Warren Turner, Finance Director at Moneyhub
Specialist FinTech brokers who walk with you as you scale
If you’re a FinTech or tech scaleup, don’t waste your time on brokers that don’t talk your language. Instead, talk to us. We’ll get into the grit of your fast growth business needs and create space for you to grow.