Minted App
Europe Fintech Insights Open Finance Paytech

54% Of UK Residents Are Not Investing for the Future; Minted Survey Finds

New research undertaken by precious metals savings app, Minted, shows that more than half of UK residents (54%) are not investing for the future at all, due to a lack of knowledge and inexperience.

Making money work harder is crucial, both for building personal wealth and for securing the financial futures of family members. However, despite the obvious benefits, a recent survey of over 1,100 people in employment, reveals that more than half of people (54%) have no investments at all. This is mostly due to a lack of understanding.

To combat this, the UK-based fintech startup Minted has launched a new web and mobile app, which allows users to buy and sell gold in more manageable increments. Through the app, users can invest as little or as much as they want each month, and withdraw the physical gold, once they have enough to make up a bar.

The survey also revealed a number of hesitancies around investing and saving money, based largely on understanding the options available, including precious metals, buy-to-let property, cryptocurrency stocks, and shares.

For more than a third (38%) of people, the main concern around property was the upfront costs involved. For cryptocurrency and stocks and shares, over a quarter of people admitted that they did not have the knowledge of whether it was a worthwhile investment in the long run. 4 in 10 people were not confident that their current savings and investment would deliver any return.

According to the research, a lack of knowledge and worries about cost are holding people back.

Hamzah Almasyabi, co-founder, Minted
Hamzah Almasyabi, co-founder, Minted

Hamzah Almasyabi, the co-founder of Minted, explains, “The fact that over half of people have no savings or investments is worrying and it’s clear that for a large number of people, it’s still very much unchartered territory. There are so many options available that finding the best route that fits the bill in terms of accessibility, risk, and reward, can be tricky – especially for a first-timer.”

However, the Covid-19 pandemic has had a positive effect on general attitudes towards savings and investment, in part due to factors such job uncertainty and in some cases, more being available due to lockdown restrictions. The survey results show that the pandemic has prompted almost half of people (49%) to start saving money, and a further 35% to show more interest in investing in the future.

“The pandemic has shown that our financial security is not a given and introducing another source of income, or saving, is vital,” Hamzah continues. “While there are a variety of options to consider, in a climate of stock market volatility and low-interest rates, more unusual options, such as gold bullion could be the safest bet, particularly for first-time investors.

“Buying gold is simple, with no banks involved. A rise in fintech companies such as Minted, allows users to buy and sell precious metals using a smartphone, from the comfort of their home, and have it sent directly to them. With the average annual growth rate at nine percent, buying gold and precious metals is not just extremely accessible, it’s also an easy way to save for the future.

“Broadening the appeal of savings and investment across age groups and demographics is crucial. It’s no longer the case that investing in the future requires large amounts of up-front cash and there are a number of platforms, such as Minted, which offer flexibility and accessibility. Even saving a small amount per month can be hugely beneficial in the future.

“When considering investment options, it falls to the individual to educate themselves on the dos and the don’ts, and important considerations can get overlooked. Too many people make the mistake of wanting an immediate return on their money but investing and saving is about being patient. A lot of investments increase their value slowly over time, meaning the longer you invest your money, the better the financial gain.

“Precious metals offer stability for those who are hesitant about saving their hard-earned money. Gold in particular has intrinsic value all over the world and is one of the oldest trading currencies. Buying bullion is no longer the preserve of the super-wealthy and we’re bringing it to the masses, whether you’re saving for yourself, your childrens’ futures or simply just looking to diversify.”

Author

  • Tyler is a Fintech Junior Journalist with specific interests in Online Banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

Related posts

Fintechs Who Outsource to Specialist Partners Generate Nearly £1m in Additional Revenue

Tyler Smith

Debt collections in times of uncertainty

Manisha Patel

City Of London Group Appoints CTO to Support Banking License Application

Manisha Patel