Octopus Group, a group of entrepreneurs and investors backing the people, ideas and industries that it believes will change the world, has announced the launch of Octopus Money.
The new brand offers money coaching and advice to millions of people across the UK, regardless of how much they earn or are able to invest.
Octopus Money is the company’s second mass consumer brand alongside Octopus Energy and the new home for all money-related advice in the group.
Combing Octopus MoneyCoach and Octopus Wealth
Octopus Group will invest £50 million to help grow the new business and will build on the insights and successes of both Octopus MoneyCoach and Octopus Wealth to provide people with personalised, one-to-one help on all things money.
Simon Rogerson, Founder and CEO, Octopus Group said:
“Octopus was founded on the simple belief that many industries didn’t exist to best serve their customers. That guiding principle has seen us build and invest in truly disruptive, customer-obsessed businesses across a whole host of sectors, with financial services, energy and education chief among them. All of our businesses – from Octopus Energy to Octopus Investments – are united in their genuine ambition to engage with their customers in a different way.
“Octopus Money shares that common goal. The way we see it, managing our money is like eating broccoli. We know we should do it, but we’d rather eat chocolate cake. Like eating healthily or working out, people want to be good with money. Most money brands are only focused on continuing to sell us broccoli, rather than finding new ways to engage us. We’re here to serve chocolate cake.”
The new business will be led by Ruth Handcock, who was part of the founding team of Tandem Bank – one of the first UK challenger banks – and was most recently the CEO of Octopus Investments, which manages £12.9bn on behalf of retail and institutional investors.
Octopus Money will help people turn their hopes and dreams into reality by enabling them to make better decisions with their money. Going beyond technology alone, the company will provide every customer with their own money coach or financial adviser. Customers will also receive ongoing one-to-one support to put their plan into action, as well as personalised investment and pensions advice at one simple, transparent price.
The brand will focus primarily on providing services through UK employers. Octopus Money will partner with people-centric workplaces to help employees make the most of the money and the benefits they receive.
One size doesn’t fit all
To support people who are not yet ready to plan for the long-term, Octopus Money is launching the UK’s first one-to-one budgeting support service available through workplaces. Employees will work with their coach through a tailored programme to save money, build lasting habits and create a personalised budget.
Ruth Handcock, CEO of Octopus Money, commented:
“Over the last decade, the industry has ‘innovated’ the humanity out of most financial services businesses. We’ve never had access to more apps and more information, and yet millions of people are still confused about what to do with their money. That’s why everything we’re building at Octopus Money starts with the belief that when it comes to money, people want to engage with a human, not just an app.
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“We’re partnering with UK workplaces, because we believe employers are the country’s best hope for improving financial wellbeing. Too often, meaningful money conversations are rushed, fumbled or altogether absent inside businesses. This leaves employees feeling confused, frustrated and undervalued. For many UK employers, ‘people’ are the single biggest investment and yet there’s often no one helping employees to make the most of their pay. Octopus Money aims to help companies fill this gap.”
Employers not doing enough to support financial wellbeing
According to new research by Octopus Money, many employees don’t feel companies are doing enough to support them financially. 66% of employees don’t think their employer cares about their personal finances and only a quarter of employees (27%) say money conversations at work end with a positive outcome.
Octopus Money hopes its human-led approach will help change the tide by helping employees get the most out of their pay – and connect the dots between their dreams in life and their reward at work. The research showed that speaking to an expert about personal finances is the primary way people want money help – over educational content, social media and more.
Over the coming year, Octopus Money will also be looking for opportunities to launch new services that offer customers deeper money and emotional support through big life events.
“Many of the biggest life events happen unexpectedly. When we have a sudden change in our health, we know who to call, but when we have a sudden change that impacts our money, most of us don’t know who to turn to. No one should be left to sort their money on their own, so we’re excited to be exploring additional ways to help people when they need it most.
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