The founder of Travelex is investing in a new app that its creator – former Virgin Money boss Dame Jayne-Anne Gadhia – predicts will save customers £1,500 annually on their household bills.
Sky News understands that an investment vehicle set up by Sir Lloyd Dorfman has led a £3m funding round for Snoop, which launched earlier this month.
Snoop uses machine learning to track consumers’ bills and spending patterns, using the data to provide money-saving tips.
The app is designed to exploit the era of open banking, a new framework that enables consumers to utilise their personal data to generate savings from utilities and other service providers.
Dame Jayne-Anne has identified the space occupied by price comparison sites such as MoneySuperMarket and Compare The Market, as well as traditional and digital banks, as being ripe for disruption.
She believes there is a £12bn total saving available to consumers who are penalised for misplaced loyalty and apathy, from which service providers benefit.
The app, Snoop is intended to remove the hassle for consumers and businesses of switching their provider of personal banking, insurance, energy, mortgage or telecoms services.
Dame Jayne-Anne is a former chief executive of Virgin Money
Sir Lloyd’s investment makes the entrepreneur a shareholder in Snoop alongside Salesforce Ventures, part of the American cloud software giant where Dame Jayne-Anne had a brief stint as its UK chief executive.
Dame Jayne-Anne, who left Virgin Money following its £1.7bn takeover by CYBG, the Clydesdale and Yorkshire bank owner, is one of Britain’s most prominent businesspeople, leading a review for the Treasury aimed at removing barriers to women working in the financial sector.
The former banker, who chairs Snoop, has predicted that the new app will reach three million customers in the UK in a "relatively short period", and said it had been designed to expand outside the UK.
"The aim is for Snoop to become both a leading brand in tech and banking, without ever taking customer deposits or lending," a source close to the company said.
"The best experience in banking will no longer be with a bank."