New planning app launches with big-name backers

By Ryan Weeks on 5th October 2018

Fintech

Both TransferWise’s CEO and Nutmeg’s former CEO invested in the app’s seed-round.

New planning app launches with big-name backers

There’s a new name in the increasingly crowded fintech-niche that is financial planning. Multiply has today launched with a solution targeting freelancers and the self-employed.

Multiply is free to use and aims to connect independent workers with the benefits enjoyed by those working at larger firms, including automatic pensions contributions and life insurance.

The app asks straightforward questions of its users to help them understand their financial standing and longer-term life goals. Its tech then creates bespoke financial plans based on affordability rather than earnings, due to the unpredictable nature of its target customers’ income streams.

The app continuously tracks and evaluates financial products and optimises its customers’ plans to adjust for any changes in the market.

It identifies its three key steps as calculating an emergency fund, building a pension pot, and setting financial goals – which it helps users reach using product recommendations. Asked about these recommendations, a representative of the firm clarified that Multiply is not yet making referrals to specific products, but rather to product types, such as cash ISAs for savings. The firm is currently seeking authorisation from the FCA to advise on pensions, investments, insurance and beyond.

According to ONS data, 4.8m Brits currently work for themselves, a number Multiply attributes to significant growth in the gig economy. Research from the Association of Independent Professionals and the Self-Employed (IPSE) shows that 3.3m self-employed workers in the UK have no pension plan in place.

Vivek Madlani (pictured), co-founder and CEO of Multiply, said in a statement: “We want to help independent workers enjoy the freedom they value, whilst also gaining the stability they deserve. The financial perks enjoyed by those in full-time work just don’t exist for this group. But building up an emergency fund, preparing for retirement and saving for life goals such as buying a home are just as, if not more, important when you’re working independently.”

The company raised £1.75m in a seed round in June 2018, with Octopus Ventures, Portag3 Ventures LP and Entrepreneur First participating. The round also featured some well-known fintech faces participating as angel investors, including former Nutmeg CEO Nick Hungerford and Taavet Hinrikus, CEO and co-founder of TransferWise.

 

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Companies in this Article:

Nutmeg

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