The future of finance is changing for the better. January industry news.
In this year’s ‘Bloomberg Business Innovators list’ Funding Circle was named as one of the breakthrough businesses disrupting the way people live and work in the UK. From leading fintech start-ups to bionic hand creators, the British Business Innovators are transforming industries and changing the future for the better, according to CityAM.
In 2015, the UK technology sector secured a record $3.6 billion from venture capitalists, up 70% from 2014. Funding Circle’s James Meekings was quoted saying, “Small businesses are the lifeblood of the economy. The money we raised, from some of the world’s leading investors, allows us to continue to increase the number of small businesses that can borrow through Funding Circle, both in the UK and across the world. We want to become the first choice for small business lending.” More coverage in Bloomberg, CityAM and Business Insider.
Sir Roger Gifford, former Lord Mayor of London, explains his three predictions for the City of London in 2016, which includes the fintech revolution. The predictions show how the importance of financial technology is continuing to grow, with over 44,000 people currently working in the sector, and marketplace lending thriving within it.
An article in The Independent discusses the move by marketplace lending platforms to establishing themselves as a genuine rival to the banks. A positive plan that is being put into place is the Government’s statutory referrals scheme. Under the scheme, banks will be required to refer businesses to alternative sources of finance instead of turning them down completely.
With billions of dollars flowing into the fintech sector, Ernst and Young has run a survey to find out just how many people are using this type of technology. They found that out of 10,000 ‘digitally active consumers’ across the globe, 1 in 7 people consumers already use a financial technology product. This study links to a recent survey by Transferwise which predicts that in 5 years time, the amount of people using a technology provider for their financial needs will almost double.
And finally, over the past few years, there’s been a significant increase in buy-to-let in the UK, but recent Government announcements could make it less attractive. Marketplace lending is a potential option to suit landlords and other investors who are looking for a fairer and faster way to access income. This article in the Guardian highlights the positives of marketplace lending and the attractive rates you can receive if you properly diversify your investments. Learn more about what diversification can do for you on our blog, and remember, by lending to businesses your capital is at risk.