Consumers hunting for better savings rates boosts sales for Moneysupermarket

A boom in consumers shopping around for better savings accounts has boosted sales for comparison site Moneysupermarket.

The platform profited from people hunting down better deals throughout last year and saw revenues across its money division, which compares current and savings accounts, credit cards, and loans, jump by 37%.

The company said this was because of attractive promotional products, especially savings accounts, being available throughout the year.

There was also strong demand for loan products for most of the year, but noted that it weakened in the final quarter following September’s mini-budget, which saw lenders hike up interest rates on mortgage products.

It made mortgages less attractive for consumers at that time and dragged on its revenues over the final three months of the year, the firm said.

Moneysupermarket also saw revenues jump by 8% across insurance over the year, which is its biggest division and includes car, home, travel and pet insurance.

Insurers like Direct Line and Admiral hiked up prices of premiums, particularly for car and home insurance, during 2022 after facing a surge in the cost of claims.

But this drove consumers to the comparison site as it prompted them to hunt for a better deal, the firm said.

It also helped offset declines following the introduction of new insurance pricing regulations, which banned so-called loyalty penalties for customers who stuck with their insurer and ended up paying significantly more than new customers.

However, the platform suffered a 42% drop in revenue from home services due to the closure of the energy switching market, it said.

Moneysupermarket explained: “Throughout 2022 wholesale energy prices were above Ofgem’s price cap – therefore providers were unable to offer switchable tariffs with meaningful customer savings.

“The ongoing uncertainty in the energy market means it is unlikely that switching will return in 2023.”

Nevertheless, total revenues jumped by 22% in 2022 to £388 million.

Its adjusted earnings were up by 15%, from £101 million in 2021 to £116 million last year.

The firm makes money by taking a payment from companies when they list on the website or when people buy a product through the platform.

Peter Duffy, the chief executive, said: “I’m pleased to report a strong return to revenue and profit growth as we build strategic momentum.

“The progress we’ve made gives us the foundation for more product innovation which, amid a tough macroeconomic climate, will help households find even more ways to save with our portfolio of trusted brands.”

Moneysupermarket said it helped households save an estimated £1.8 billion in 2022.