Investec Click & Invest, the online investment service, today announces it has reduced its minimum investment amount to £2,500. The change, which is effective immediately, advances Click & Invest's mission to broaden its service to more investors. 

Click & Invest believes everyone should have the opportunity to benefit from harder working money and aims to empower more people to take control of their financial futures and think about their long-term investment goals. Though the minimum investment amount has reduced, Click & Invest's high quality online investment service remains the same; clients will continue to benefit from a team of investment experts managing their money, backed by Investec Wealth & Investment’s 180 years of investment experience. 

Jane Warren, Investec Click & Invest CEO, said: “We are passionate about empowering people to understand the opportunities and benefits of investing in the stock market. We also want more people to access active investment expertise, whether that’s through opening up a Stocks and Shares ISA or from a General Investment Account. We know that when it comes to investing, the hardest part is often getting started and the prospect of conducting your own research can be daunting and time consuming. Our service solves that problem by combining premium investment expertise with the convenience of an online service.

“The online investment industry is still relatively young, and at Click & Invest we are continually monitoring for and developing ways of enabling people to discover the benefits of investing. We are pleased to announce a new minimum investment threshold. Not only will it enable more investors to benefit from our commitment to delivering a high-quality active investment service, it also furthers our mission to make investing as straightforward and transparent as possible.” 

In light of the recent defeat of Theresa May’s Brexit deal, Alex Neilson, Investment Manager at Investec Click & Invest, comments on the impact of a no deal: “Our expectation is that the impact of a no deal on a well-diversified portfolio made up of assets from every corner of the global economy would be minimal. The subsequent fall in sterling and the translation that it would have for overseas company earnings would also likely offset UK consumer demand falls within FTSE 100 companies – meaning their prices would likely end somewhat flat. Where UK companies will suffer is if they derive a large proportion of sales from UK domestic sources. With hard Brexit likely to impact consumer confidence and demand, these smaller UK focussed companies could be in for a rough time.

“Yet, as important as strategic diversification is in helping to navigate unpredictable markets, the best antidote to volatility is time. As an investment manager I try to look beyond these short-term fluctuations to see where the true value lies over the long term, it’s worth noting that whatever the outcome of Brexit, companies will overcome the challenge and there will continue to be investment opportunities in the UK.”

As part of Click & Invest’s mission to empower more people to invest, CEO Jane Warren gives her five top tips for first-time investors to start investing in 2019:

1. Know what you’re investing for, set goals

You may have a sense of you want to invest for. This could be a deposit on a house, retirement savings or simply to make your existing savings work harder by utilising your annual ISA allowance. Before you can answer some of the following questions, it’s good to have an idea of exactly what this goal is for you.

2. How long do you want to invest for?

This is about distinguishing between your short and long term goals. If you’re looking to build your pot of money to afford something within the next three years, then your money may be better off in a savings account. We recommend investing for those longer-term goals, which usually means your money is set aside to grow for more than three years. If you can afford to leave it aside for longer, your money could also benefit from the positive impacts of compounding and long-term growth, while helping to protect you from the short term effects of volatility.

3. How much can you afford to invest?

It’s always wise to have some rainy day savings kept aside for any unexpected large payments, such as broken boilers or a car breakdown. Choosing to invest any spare or non-emergency cash over the long term, could offer you higher returns than saving your money in a bank account, and help protect your money from the erosive effect of inflation due to low interest rates.

4. Be realistic about what you are comfortable with

The very definition of risk invariably differs from person to person, and our attitude to financial risk is no different. Understanding the amount of risk you are willing to take with your money is an important step to consider before investing, and if you decide not to do it alone, a service like Click & Invest will build an investment strategy around you, your financial goals and the amount of risk you are comfortable taking.  

5. What service are you after?

If you are happy to invest in the stock market yourself, and take control over buying and selling your own investments, there are what are known as “DIY” services available, which will allow you do this. However, if you would prefer a service where a team of investment experts manage investments on your behalf, or you think you might need some advice on the pot of money you are looking to invest, there are several platforms offering this service. Investing with a service that you can trust is the best start for any first-time investor. That way, you can feel comfortable your money is being invested in the right way by investment experts.

Opinions given within this press release are my own personal views. My views and opinions are effective from the date of publication but may be subject to change without notice.

Alex Neilson, investment manager at Click & Invest gives his outlook for 2019, and why he believes now is the right time for investors to make the leap:

“What makes 2019 unique is the number of factors that are currently causing market volatility. Be it Brexit here in the UK, budget concerns in the EU, rate rises in the US or the ongoing trade renegotiations in emerging markets, there are many political and economic factors that are weighing on market sentiment. In such a climate, the stock market can be an intimidating place, especially for first time investors. However, there is plenty for investors to be excited about in 2019. 

“Our expectation is that 2019 should see positive moves in the US/China negotiations which should set emerging markets up for a decent rally, given that they had a torrid 2018. The Chinese based Hang-Seng index is currently trading close to historic lows on a profit and earnings basis and as such we are bullish on the outlook. Much of this rests on the timeline of the US/China deal, and all eyes are currently on that as we start the year off.

“Long-term investors should be wary of making decisions based on the daily dramas of the news cycle. Recent headlines may suggest an uncertain fate for emerging markets, but we see fundamental value there, which is why we have significantly increased our emerging market exposure towards the end of 2018, with a particular focus on Asia. Some of the funds we’ve picked to gain exposure to emerging markets include the Schroder Asian Alpha Plus fund, which gives us access to a broad stock profile of the best ideas in Asia, and the Hermes Emerging Global Markets, a fund where growth at a reasonable price ensures we don’t get caught out by overly expensive stocks in periods of emerging markets strength.”

Opinions given within this press release are my own personal views. My views and opinions are effective from the date of publication but may be subject to change without notice.

A new white paper published by ground-breaking financial utility, Banking Circle, has identified the stealth effect outdated payments processes are having on the insurance sector.  Featuring the findings of exclusive research amongst those responsible for treasury and payments in UK insurance companies, the white paper reveals that out-dated and manually intensive collection and reconciliation systems are seriously undermining customer experience and profitability targets.

Anders la Cour, Co-founder and Chief Executive Officer of Banking Circle commented: “In the highly competitive insurance market, providers are increasingly investing in automated systems and digitisation strategies for their front-end processes.  But back-office functions, such as payments processes, appear to have not kept pace with innovation. Today, out-dated payment architecture has a stranglehold on the insurance industry, holding it back from providing policyholders with the most efficient service.”

Insurance firms reliant on legacy systems, sometimes developed decades ago, and the intensive M&A that has occurred in the sector in recent years means that the opportunity to design systems based on today’s digital advances is limited.  Astonishingly, the Banking Circle commissioned research found that nearly a third (28%) of respondents use manual reconciliation methods. And whilst 68% use some automated systems, they also still rely on some level of human intervention.  Just 4% said they use fully automated reconciliation solutions.

As a result, payment delays due to issues with reconciliation of payment reference numbers ranked as the biggest issue faced by insurers in the payments arena. According to the research, payment reconciliation processes in the insurance sector are currently highly inefficient, with matching rates lower than 90% for 57% of insurance providers. Anything less than 100% can impact cash flow, draining operational and financial resources as well as results.

The research also found that there were four key areas that impacted bottom-line profitability for insurers:

• Collection of the insurance premium where direct debit is not used or has failed
• Delays caused by the omission of payment reference details from banks
• Delays caused by inaccurate manual keying of reference data
• Collection of payments from brokers and intermediaries

Only 19% of respondents rated their premium collection capability as excellent.  And less than a third (28%) ranked their speed of claims payment as excellent.  Against the backdrop that 52% of insurers see compliance with operating in the digital space as the biggest threat to their business, the research commissioned by Banking Circle suggests that insurers need help from external specialists.

Anders La Cour continued: “With so much focus on pricing and the front-end customer experience in the insurance sector it’s not realistic to expect insurance providers to devote resource and investment to building their own payment solutions in-house.  There is, therefore, a clear opportunity for the burgeoning InsurTech sector to step in, working in partnership with financial utilities like Banking Circle.”

Banking Circle Virtual IBAN completely eradicates the need for account reconciliation. Virtual IBANs enable insurance providers to segregate remittance flows with 100% accuracy due to the directly accessible nature of the virtual account. This means each virtual account can receive funds directly via Bank Transfer without the need for reconciliation via a master account. Virtual IBANS can also be used for claims management pay-outs. Payments are made in the name of the Virtual IBAN, improving payments acceptance, settlement times and reconciliation.

ABN AMRO launched a pilot earlier this year in which 500 clients were asked to make payments using wearables. Of these clients, an impressive 78 per cent now prefer the wearables, and only 19 per cent prefer their debit cards. On average, clients make six payments a week for amounts under 25 euros. ABN AMRO is extending the pilot to test new functionalities with this pilot group. 

During the pilot, clients provided feedback using a dedicated app. Some of their suggestions led to adjustments while the pilot was ongoing, and, based on others, new features are now being developed. The majority of clients wanted to be able to see payments made with the wearable real-time in their Mobile Banking app, rather than a day later as is now the case. Also, clients want to be able to make payments over 25 euros with their wearables and PINs.

SWIFT has today published a standard for ‘Pay Later’ APIs in a key step toward enabling the rapid adoption of an innovative new consumer payment model.

‘Pay Later’ is an instant online payment facility which offers customers the ability to use traditional bank loan financing to pay for goods purchased online. By selecting Pay Later at the point of purchase, customers are provided with available loans from their banks; they can then select and initiate a loan, knowing that the funds can immediately be credited to the merchants and items dispatched. By offering the Pay Later option, merchants are in turn able to offer a wider variety of purchase options and to reach a wider consumer audience, whilst still ensuring surety of payment.

By publishing an API standard for ‘Pay Later’, which is formally called the Transactional Finance Application Programming Interface, SWIFT is facilitating the widespread adoption of this new payment model by both merchants and banks around the world. Using this single standard, merchants will be able to implement the Pay Later option ensuring they are able to reach multiple banks around the world and avoid multiple costly implementations.

Stephen Lindsay, Head of Standards at SWIFT said: “SWIFT has long been at the forefront of banking standardisation and is continuing this work in the API world. Our work on Pay Later is a good example of how standardisation plays a vital role in ensuring the industry can take every advantage of technological innovation.”

Tony McLaughlin, Managing Director, Treasury and Trade Solutions at Citi said: “The launch of Pay Later API will support banks’ transition into the world of digital platforms. The API will enable banks to maintain the vital lending relationship, whilst driving growth of the global digital economy. Citi believes that the introduction of this interface will provide the basis for future innovations in platform banking.”

Anne Carøe Hald, Global Head of Payments Products at Danske Bank said:

“Pay Later is an opportunity for banks to serve their customers better; to offer appropriate finance where and when customers need it. The ability to provide services in this way - seamlessly integrated in customers’ on-line lives - will be key for banks to thrive in the digital economy.”

Christer Holloman, CEO at Divido said: “New digital ecosystems are emerging that create magical customer experiences for millions. Financial services will be part of that transformation and become invisible enablers of the customer journey. Banks need to embrace fintech partnerships and standardised APIs for retail and wholesale banking to secure their role in the digital economy.”

In fulfilling its established role as a trusted standards setter, SWIFT provides a neutral venue for collaboration, standards and payments business expertise – as well as a platform for capturing, publishing and testing specifications that ensures all participants can contribute with confidence. 

The working group on the Pay Later API standard includes banks, merchants and technology providers. This group will continue to work together to evolve the standard API specifications and rulebook. The aim is to create the conditions for a broad ecosystem of the Pay Later platform to provide optionality to customers, to give merchants a greater ability to sell their goods and to ensure a wide reach for banks. By re-using business definitions from the established ISO 20022 messaging standard that it manages, SWIFT ensures that data specified in APIs is compatible with the messages used to clear and settle instant payments, simplifying data integration for both banks and merchants

SWIFT welcomes contributions from industry participants to continue evolving the Pay Later standard. With the publication for version one of the specification, multiple participants, including merchants, marketplaces, fintechs and banks will be able to begin working on live pilots. The parties foresee an ongoing collaboration between industry participants to develop value added API standards to drive the growth of the digital economy.

Core Retail, the leading supplier of pre-paid SIMs and mobile accessories, has become the first organisation to deploy a brand-new payments tool that automatically flags and rejects counterfeit, forged and fraudulently altered cheques. UCN Plus ® - patents pending – was officially launched last month by The TALL Group of Companies, the UK’s leading provider of secure electronic and paper payments solutions, and DIA Europe, providers of the Kappa cheque fraud prevention platform.

The communications specialist has a long-standing relationship with Checkprint (a member of the TALL Group of Companies) to securely print, personalise, infill and mail their cheques through the Checkprint Bureau Service. As part of the updated agreement, Checkprint will now incorporate UCN Plus ® as part of its service offering to Core Retail.

UCN Plus ® enables the variable payment data – payee name, amount, date, etc – to be encrypted and hidden within a QR code printed on the face of all cheques issued by the TALL Group on behalf of its cheque bureau customers. Once the recipient has deposited the cheque, Kappa’s profiling and matching tool alerts the issuing bank to any mismatch, and customers can review the item before committing to pay, and still remain within the new two-day clearing cycle. This reduced clearing cycle forms part of the Image Clearing System (ICS), which was officially introduced across the UK last October. As part of ICS, cheques are now digitised at the point of deposit, and are no longer be transported during the clearing process.

Jonathan Lovell, Chief Financial Officer at Core Retail, said: “We are delighted to be working with Checkprint and the inclusion of the UCN Plus® on our cheques adds an extra level of security. We have always put innovation and serving our customers at the heart of what we do. We believe this will continue to ensure Core’s expansion well into the future. By embracing this innovative approach to cheque security, we are matching our own future ideals.”

Martin Ruda, Group Managing Director at the TALL Group of Companies, said: “As an organisation committed to the safety, security and integrity of the cheque payments system, the collaboration with Kappa has enabled us to deliver a further and critical layer of fraud prevention to the UK’s corporate cheque users. The benefits of the new Image Clearing System will underpin the continuing effectiveness of the cheque as a payment tool, and the TALL Group will strive to ensure the UK payments systems stay one step ahead of the fraudster.”

Amadeus, a leading travel provider for the travel industry, is working with Accuity, the leading global provider of risk and compliance, payments and know your customer solutions, to transform its cross-border payment process. 

The travel technology firm implemented Bankers Almanac Global Payments File ERP, which provides accurate, reliable and up-to-date payments and routing information that integrates directly with its enterprise resource planning system, SAP S/4HANA. The solution provides an automated workflow to reduce the time spent by operators on manually inputting and validating payment information.

Javier Luque, Head of Financial Risk Management at Amadeus said, “This solution gives us confidence that the fast pace of our business will not be disrupted as we expand and work with new third parties. The coverage provided by Accuity payments data, which spans even the most far-reaching corners of the world, ensures that the global payments we make go through the first time, every time.”

The increased accuracy of payment information provided by the new system means Amadeus has also mitigated the risk of delayed or rejected payments – which can lead to negative consequences, such as incurring bank charges and breaching supplier SLAs.

Corporations, like Amadeus, need to set up payments correctly and provide critical data in order for their partner banks to execute payment instructions without delay. By improving payment processing rates, corporate treasurers can dramatically improve efficiency and cut costs.

Carlos Triñanes, EMEA Director at Accuity said, “To keep business flowing, Amadeus needs to transact seamlessly with third parties around the world. Accuity payments tools, which are trusted by banks and corporates alike, are helping to streamline and automate this payment process for Amadeus by removing the margin for error. This brings Amadeus great efficiency and the ability to scale its payment operations as the business grows.”

Insurance Nexus announces 2019 dates for world-renowned conference series focussing on transformation and technological advances for senior leaders in the insurance industry.

The insurance industry is undergoing dramatic and unprecedented changes. In recent years, data has proliferated, customer expectations have skyrocketed and technology has rapidly evolved; and so far, insurance companies are grappling with greater competition, increased regulation and the need for more investment. However, opportunities abound and the race is on to win customers for the future.

To provide organizations with the tools, strategies and insights they need to navigate this shifting environment, Insurance Nexus are pleased to announce their programme of events for 2019:

• Insurance AI and Analytics USA Summit (May 2-3, Chicago)
• Connected Insurance Europe Summit (May 15-16, Amsterdam)
• Connected Claims USA Summit (June 4-5, Chicago)
• Insurance Nexus Canada Summit (September 10-11, Toronto)
• Connected Claims Europe Summit (September 18-19, Amsterdam)
• Insurance Analytics Europe Summit (October 15-16, London)
• Connected Insurance USA Summit (November 20-21, Chicago)

“I’ve been involved with Insurance Nexus events in the US and Europe since 2015, when IoT was an exotic topic followed by a few insurance geeks,” explains Matteo Carbone, Founder and Director of the IoT Insurance Observatory. “It has been impressive to see the evolution of the contents and the engagement of the attendees, conference by conference.”

Focusing on the seniority of its attendees, Insurance Nexus events welcome over 3000 global attendees annually, with over 65% of event audiences comprised of insurers and more than 80% at decision-making levels.

Leading insurers regularly in attendance include AIG, Allstate, Allianz, American Family, AXA, Aviva, Chubb, Desjardins, Erie, Farmers, Generali, Hiscox, Intact, John Hancock, Liberty Mutual, LV=, Mapfre, Munich Re, Nationwide, New York Life, Progressive, Prudential, Swiss Re, Tryg, XL Catlin, Zurich and more.

For more information, visit http://bit.ly/2svXJkF

Insurance Nexus is part of FC Business Intelligence Ltd. FC Business Intelligence Ltd is a registered company in England and Wales. Registered number 04388971, 7-9 Fashion Street, London, E1 6PX, UK

Insurance Nexus is the central hub for insurance executives. Through in-depth industry analysis, targeted research, niche events and quality content, we provide the industry with a platform to network, discuss, learn and shape the future of the insurance industry.