A new digital cash service offering fast-tracked payments for emergency use is being pioneered for local councils and charities through The Post Office.

The digital concept has been developed by Eastbourne-based security-print company Zunoma. It provides cash relief to people facing financial hardship without the need for a bank account. Currently, eight councils across the country use the Payout NOW! service.

Payout NOW! was developed with the Post Office to allow individuals to withdraw emergency cash. It allows local authorities, charities, and businesses to send a payment digitally through an emergency barcode via SMS, email, or a printed voucher. The cash is immediately ready for collection at any one of 11,500 Post Office branches. 

Steve Hancock, Director of I.T. and Digital Services at Zunoma, said: “In this day and age we are increasingly reliant on digital accessibility and because of this, digital security is vital.

“The Payout NOW! process is simple, secure and flexible, with the ability to give anonymity to the payee. The emergency barcode is a protected solution for councils to provide funds to those facing any emergencies, be it medical, homelessness or child support payments. As innovators we are proud to offer this service across the country.”

Andy Locker, Commercial & Product Manager at The Post Office, said: “The Post Office Payout® service is a cash payment gateway specifically designed to simplify the sending of emergency cash payments to vulnerable people, and is commonly used by businesses to issue payments, incentives, energy top-ups or refunds to customers, without the associated time and cost of issuing cheques or organising payment transfers.

“Zunoma helped to develop and host Payout NOW! which is an extended version of Payout® that enables local authorities to digitally release funds without the need of paperwork, which makes it more accessible to the individual.”

The Post Office Payout® / Payout NOW! service uses identity verification, single use barcoded vouchers, and unique reference codes that provide real time connectivity to any Post Office counter system

Chip, the digital savings app, has analysed the demographics and behaviours of its 350,000 users to find a record number of female investors as well as trends that not only indicate a higher appetite for risk among women compared to typical data but also a strong uptake in Environmental, Social, and Governance (or ESG) investing.

Chip has given cash savers access to greater possible returns through its new investment fund offering earlier this summer. The company is aiming to give users the control of a savings product as well as access to the returns potential of investing.

The fintech, which last month launched the hotly-anticipated ChipX plan, bringing even more new BlackRock funds to its users, found that close to a third - or 27% - of its investors are women. This is 17% higher than the national average reported by the Office for National Statistics and significantly higher (in some cases 80% and 42% more) than some of the figures reported by single-share trading platforms.

Chip also found that 46% of its female investors have a Stocks & Shares ISA - nearly four times more than the UK average of 12%, as reported by Boring Money.

The analysis of specific funds women choose to invest in found that the top five funds most popular among female investors are:

1. Balanced (official name BlackRock Consensus 60 - Acc (D)
2. Ethical X (official name MyMap 5 Select ESG Fund)
3. Cautious X (official name MyMap 4)
4. Clean Energy (official name iShares Global Clean Energy UCITS ETF)
5. Emerging Markets (official name BlackRock Emerging Markets Fund)  

For contrast, the most popular funds among male investors are:

1. Cautious (official name Blackrock Consensus 35 - Acc (D)
2. Healthcare Innovation (official name iShares Healthcare Innovation UCITS ETF)
3. Balanced X (official name MyMap 5)
4. Adventurous X (official name MyMap 6)
5. Adventurous (official name BlackRock Consensus 85 - Acc (D)

The above findings suggest that the traditional notion that women adopt a more conservative and cautious approach while men tend to have more appetite for risk, including investing in new and untested shares, is becoming increasingly outdated.  
Instead, Chip’s data suggests that the most popular fund among men is Cautious - one of the lowest risk funds from Chip’s core investment offering. It’s closely followed by Healthcare Innovation showing a leaning towards moderate risk investing and interest in timely and topical thematic funds.

For women, Balanced and Ethical X funds came out on top, showing a leaning towards ESG funds and suggesting that women are more open to taking investment risk than typical data indicates.

Simon Rabin, CEO of Chip, commented: “Our goal is to democratise savings and investments. I believe that everyone should have access to tools that can effortlessly take their savings to the next level and help grow their wealth. This includes levelling out the playing field, which has traditionally skewed male.”

“We want to show that investing is no longer an elite, exclusive world dominated by dusty legacy wealth managers or macho crypto-trading “bros”. Investing is a tool everyone should consider using. I hope that by removing barriers in the form of mountains of paperwork, overly complicated interfaces and complex language, we can empower absolutely everyone to put their money to work.”

UK retail investors favour trading and investing in stocks and shares online over low-interest savings accounts, and they prefer to do it themselves rather than use an IFA

According to the findings of a new survey, people in the UK are choosing to trade and invest in stocks and shares online rather than receive potential returns from savings accounts with all-time low-interest rates.

The poll of 2,000 people across the UK, commissioned by Capital.com and conducted by OnePoll, also reveals that people in the UK are choosing to trade online themselves because they cannot afford to use an IFA and believe that banks charge too much to manage investments.

Four in ten respondents (38%) are trading or investing in stocks and shares online at home or have done so in the past, and a fifth (21%) are considering it, according to the survey.

More than half (52%) of those respondents say that they decided to do this because the potential returns are better than savings rates offered by banks. A further 44% believe that online trading is a convenient way to make some extra income.

The main reasons given for choosing to do the trading online are that it is cheaper to do it themselves than to go through a traditional bank (37%) and they cannot afford an IFA (35%).

Respondents’ reasons for choosing to trade stocks and shares online include planning for the longer term and saving for retirement or their future (41%) and trying to make up for lost earnings due to covid-19 (24%). Also, some have chosen to do this because global stocks are experiencing a bull run and they do not want to miss out (21%) and others took the plunge because they saw the headlines about GameStop armchair investors (20%).

Asked to choose how they would invest £1,000, trading in stocks and shares featured in the top three choices for 26% of respondents, just behind ISAs (29%) and savings accounts (36%).

Jonathan Squires, CEO of Capital.com, said: “This independent national survey reveals people's genuine concern about their financial futures. But even as savings rates remain low and questions persist about how they can make their money grow, it is important that people understand the different risks associated with online trading versus a savings account. Savings shouldn’t replace trading and people should only trade what they can afford to lose and even then, they should invest with the long-term in mind.

“The survey also raises the important question about whether traditional sources of financial management are offering value for money. There is a clear willingness for people to take matters into their own hands by trading and investing in stocks and shares directly online, themselves. The internet has broken down barriers to education and investing, making it easier for people to find information online.”

The survey also reveals a stark age divide in online trading experience levels. Respondents from the Gen Z cohort (18-24) indicated that they feel they are the most experienced when it comes to trading, with 32% describing their investing or trading experience as professional, followed closely by 20% of millennials (25-40).

But only 7% of Gen X aged people (41-56) and just 2% of baby boomers (57-75) think that they have a professional level of trading experience. The oldest respondents aged 76 plus state they have novice-level or zero trading experience (72%), followed by 65% of baby boomers, 56% of Gen X, 43% of millennials and 29% of Gen Z.

Mr Squires added: “Long gone are the days when trading was the sole preserve of pinstriped suites in the square mile – technology is allowing ever more people the chance to trade. As a mobile-first generation, millennials and Gen Z are likely to hone their skills using trading tools and resources that are easily accessible via apps and websites. Education remains key to ensuring safe and responsible trading, especially if you are young and just starting out.”

The survey also reveals a gender divide, with 47% of male respondents either currently trading in stock or shares or having done so in the past, compared with 29% of women. However, the same number (21% of men and 20% of women) are considering doing so in the future.

Among those who said that they would not trade stocks and shares online, 48% said that they did not know enough about online trading to do it themselves while 20% said they were afraid of being charged a lot of fees to trade online. Only 7% said they wouldn't trade online themselves because they only trust IFAs or banks to do so and 59% said they don’t trade online themselves because they consider it too risky.

AREX Markets, the data-driven FinTech company that drives financing costs down for SMEs and enables them to get access to cash quicker, today announces its integration into the Xero App Store. 

The AREX app helps to unlock money trapped in unpaid invoices and opens up alternative avenues for the UK’s SMEs to traditional invoice financing. The non-recourse finance-based business has been approved following a highly selective process, due to the unique and ethical approach it takes to invoice financing.

AREX facilitates a live, algorithm-based trade that enables businesses to access the cash held in their debtor book. The SME invoice itself becomes a tradable asset and AREX’s platform allows professional investors to invest across a range of these assets and industries. 

Its integration provides seamless access to the service for Xero users, who needn’t leave their accounting software in order to unlock value from their invoices, and swiftly receive the money back to their balance sheets - often within 24 hours. AREX can be found in the Xero App Store under the Financial Services category.  

Xero’s 720,000 UK subscribers will have access to AREX as it joins the marketplace. 

Comments, “Xero’s goals and ours are perfectly aligned. We want to make it easier and fairer for SMEs to do business, and to take back control from traditional structures which have hindered their growth potential. To see the AREX app sit comfortably alongside other business finance options like Market Finance, Satago and iwoca Pay is a major milestone for the company and will accelerate its growth into the UK market where we can make a tangible difference to empower businesses to regain control of their cashflow. We’re really excited to see how this relationship with Xero develops.” 

Commenting on the news, Ryan Pearcy, SB Digital director at Scrutton Bland added, “Cloud tech options are fundamentally changing the way business is done. AREX has gone a step further, because their aim is to take power away from the centralised operating model, in this case, the bank. Companies like AREX guarantee the customer competitive market rates and do it in the most ethical way possible. We choose to partner and work with market-defining apps. Through open market dynamics, AREX is one of these, with the ability to change the perception of how financing is used as a first resort rather than a last chance.” 

The relationship with Xero accelerates AREX plans and growth within the UK market, following its recent successful EUR 8.8m Series A funding round. 

Mastercard opens door to startups around the world looking to grow platforms across open banking, predictive financial modeling for small businesses, smart rental payments and beyond

Today the award-winning global startup engagement program Mastercard Start Path welcomes 11 fintech companies to receive dedicated support, access to customers and product teams, and opportunities to co-innovate. Finmod, Flourish Savings, GenEQTY, Karri, KeyChain Pay, Kwara, Layer, Osper, Swap, upSWOT and Wellthi have been selected to participate and are using gamification, behavioral science, social banking platforms and more to modernize payments. Of this group, GenEQTY, Finmod and Wellthi are joining the new Start Path track dedicated to supporting early-stage startups led by founders from backgrounds underrepresented in the fintech space as part of Mastercard’s In Solidarity commitments.

“We’ve seen tremendous growth across the fintech landscape, and more people are benefitting from the digital economy than ever before, whether they’re gaining access to credit for their small business through open banking or securely making payments to their child’s school from the comfort of their smartphone,” said Amy Neale, senior vice president, Fintech & Enablers. “Through Start Path, Mastercard creates a springboard for fintech companies that are driving a more inclusive digital economy and helps them accelerate the way they change the world.”

Mastercard has a track record of collaborating with startups. Since founding Start Path in 2014, the company has uncovered co-innovation opportunities and provided mentorship to more than 260 startups that have gone on to collectively raise more than $5 billion in capital. The following startups are joining this growing network to rapidly scale their business:

• Finmod helps small and medium-sized businesses forecast financials 10 times faster and make financial decisions in real-time.
• Flourish FI is an engagement and financial wellness platform for financial institutions, using gamification and behavioral science to empower individuals to establish positive money habits and achieve financial security.
• GenEQTY offers a smarter digital banking solution to help small businesses and solopreneurs improve financial performance, manage business health and get faster access to funding through one central data-driven business hub.
• Karri is a mobile payment app that facilitates fast and easy payments to schools and community organizations, and provides parents a convenient way to manage their child's money.
• KeyChain Pay is a smart platform for landlords and tenants to collect and pay rent using AI and credit card tokenization.
• Kwara is transforming credit unions into modern, digital banks with a credit union operating system and neobank experience for their members.
• Layer's digital banking platform delivers a blend of traditional and neo-bank capabilities from one platform, dramatically reducing cost, revolutionizing the customer journey and enabling banks and non-financial institutions to become truly digital.
• Osper empowers young people to earn, spend and save; its new B2B platform, Prosper, allows any company to launch their own youth card scheme in weeks at a fraction of the cost of building in-house.
• Swap is a Brazil-based platform that empowers businesses to embed financial services to expand their footprint, deliver unmatched product experiences and boost their economics.
• upSWOT offers a white-labeled business health dashboard that powers online and mobile banking platforms with 150+ API-enabled apps.
• Wellthi builds social banking solutions to help clients leverage the power of AI, data and online communities to attract and retain new customer segments by turning every card into a community.
   

As the fintech landscape continues to evolve and diversify, Mastercard embraces opportunities to support and collaborate with digital players to unlock potential and build the next generation of commerce.

Ready to scale your business with Mastercard as your global partner? Apply to Start Path here.

To learn about trends in the fintech industry, check out the latest report by Start Path and KoreFusion here.

Commenting on UK GDP showing a positive uptick and an encouraging economic outlook, Douglas Grant, Director of Conister, part of AIM listed Manx Financial Group, said: "Today’s UK GDP data shows a positive uptick quarter on quarter and provides a more encouraging outlook for the UK economy going forward. However, the plight of UK small businesses and current default levels caused by the ongoing impact of the pandemic should be of real concern. We must acknowledge that the UK’s business debt burden has ballooned to unprecedented levels and unfortunately this has already created a relentless flow of weak zombie-like companies falling off a loan default cliff. It is imperative that we support sectors and businesses that are strong and nimble enough to adapt to the new economy and therefore continue contributing to its growth.

"We also believe that the introduction of the Recovery Loan Scheme will act as second support system for those businesses currently struggling but with long term growth potential . Indeed, we have been pleased to see the Government look beyond the obviously more resilient business sectors and introduce the RLS which can support those businesses that have been mostly negatively impacted by Covid-19, such as the hospitality and leisure sectors. Conister will continue to do all it can, working alongside the Government and traditional lenders, to support businesses.

"At Conister we have delivered upon all of our initial objectives. We have lent our full CBILS and BBLS allocation and have applications which we hope can be accredited under the RLS. We will focus on lending this to robust businesses in all sectors that we believe will thrive in the future. Conister will continue to do all it can, working alongside the Government and traditional lenders, to support British businesses."

• 44% of European customers rate environmental and social issues as ‘very important’ when choosing a bank
• 18-24-year-olds are almost twice as likely to switch banks compared to those aged 55 and over

 Analysis from global consultancy partnership Kearney has found that for almost half of consumers, environmental and social issues are a very important factor when choosing their banking provider. One in four European consumers (24%) are likely to switch if their bank is not engaged in ESG issues.

Responsible investing in particular was the most important ESG topic. 41% of respondents surveyed wanted the reassurance that the funds they invested in would not support companies that produced weapons or polluted the environment, or factories that disrespected safety standards and human rights.

In the UK, over one in five customers (22%) would likely switch to a bank with higher ESG priorities, whilst almost 30% of consumers in Poland, Romania, Spain and Italy reported the same sentiment. Beyond responsible investments, consumers were mostly concerned with climate change (34%), consumer and human rights (34%), and business transparency and accountability (31%), across all countries surveyed.

In terms of age demographic, 18-24-year-olds are almost twice as likely to switch banks compared to those aged 55 and over, with 30% reporting that they would switch for these reasons compared to 18% of the older group. Examining the data from the opposite perspective, only 17% of the younger demographic reported that they were not at all likely to switch over ESG concerns, compared to 31% of those 55 and above.

Simon Kent, Partner and Global Head of Financial Services at Kearney, comments:

“Banking is still a sector with low number of switchers compared to telecoms or utilities, but that doesn’t mean that banks should become complacent. Consumers are actively looking to engage with companies and brands that align to their values, so it’s important that banks take action.

Our research unsurprisingly shows that consumers are likely to be more loyal if they are aware of their bank’s ethical activities, but currently only an average of 40% know what their bank is doing in these areas. There is a considerable opportunity for improvement in customer communications and engagement on this topic to demonstrate a bank’s commitment and aspirations towards supporting and undertaking ESG initiatives more clearly.

ESG concerns are not only here to stay but will increasingly drive customer behaviour in the future, and retail banks must be at the forefront.”