Each week we take a look at some of the latest news from UK fintech. In this weeks round up, UK institutional investors and wealth managers reveal an interest in cryptoassets, finance start-up W1TTY secures UK licence and coaching app Claro launches.
New research with UK institutional investors and wealth managers reveals a growing appetite for cryptoassets
London-based Nickel Digital has commissioned a survey with 23 institutional investors and wealth managers in the UK who collectively oversee $66.5 billion in assets. The survey revealed that six of those interviewed expect to dramatically increase their exposure to cryptoassets between now and 2023, and another 11 who said they will also add to their exposure.
The three main reasons given for greater allocation to digital assets is the structural long-term capital appreciation prospects of cryptoassets – the view cited by 16 of the 23 UK-based professional investors. This is followed by nine who said having some exposure to cryptoassets, they have become more comfortable and confident in how the asset class works and the infrastructure around it, and the same number (nine) who said it was because of the improving regulatory environment.
However, the survey also identified several hurdles to investing into cryptoassets. Some 16 of the 23 UK based professional investors interviewed cited concerns about the relative size of the cryptoasset market and its liquidity as an issue, and the same number cited a lack of transparency in the market. Some 15 of the 23 UK based professional investors said concerns over custodial services for cryptoassets was a hurdle in terms of investing in the asset class, and 15 of those interviewed also said this about market volatility.
Finance start-up W1TTY secures UK licence ahead of launch targeted at Generation Z
Financial services startup W1TTY, which is launching its smart finance App in Lithuania and Poland this Autumn, has secured an Electronic Money Institution (EMI) licence from the UK’s Financial Conduct Authority (FCA), enabling it to roll out services in Britain early next year.
W1TTY has already been granted an EMI licence in Lithuania, recently secured passporting rights across the European Economic Area (EEA) and has also applied for an EU consumer credit licence.
It will launch its suite of products, initially targeting students and other young people starting their first jobs and building their careers, the so-called Generation Z, in Lithuania and Poland this Autumn with other EEA countries to follow.
Ammar Kutait, W1TTY’s founder and CEO, said: “Securing an EMI licence in the UK is a testament to the strength of the team we have assembled at W1TTY and the quality of our systems, especially our anti-money laundering (AML) and know-your-customer (KYC) controls. We look forward to being able to offer W1TTY’s unique suite of financial services to customers across Europe and in the UK, giving them the choice and service they deserve, in the very near future. Our aim at W1TTY is to put customers in control of their finances through a customisable suite of attractive products and services available on the App with transparent and flexible pricing.”
New financial coaching app launches with over 24,000 sign ups to-date
The UK’s first digital financial coaching app, Claro, launched earlier this month to encourage everyone to make smarter financial decisions and drive a lasting change in the way society manages money.
The app is free to download, and users can book a one-to-one call with a financial coach, create a financial plan, and choose saving and investing products suited to them. It’s already in high demand, with over 24,000 verified people signed up to its waiting list.
Unlike financial advice, which only 6% of Brits can afford, financial coaching is an affordable and effective alternative. Claro’s combination of technology and human expertise means they can deliver financial coaching to everyone, improving both the wealth and financial wellbeing of their users.
Inside the Claro app, users can book a one-to-one financial coaching session, view their spending across multiple accounts, create goals, and choose saving and investing products based on their timeline, risk levels and values. The aim is to provide users with the education, support and tools to allow them to achieve their personal financial goals.
Claro also provides market-leading ESG (Environmental, Social and Governance) data within the app, so that users always have a choice of where they save and invest their money.
The development of Claro was underpinned by a belief in the importance of inclusivity within finance and a desire to build a supportive financial community. Striving to empower users to develop better money habits and gain the confidence to invest their money in meaningful and effective ways, Claro is using technology to help people transform their financial situation.
Rob Brockington, CEO at Claro comments: “Behind Claro is a team of financial professionals who, despite our different professional backgrounds, all identified the importance of democratising financial knowledge and opportunity. This belief in financial accessibility is at the core of Claro’s ethos and what has driven the development of the app.
“We have worked to create a platform that brings value to users’ lives through helping to set clear and manageable financial goals, which does not discriminate against users based on their age, income or financial history. The initial response to the app has been fantastic and we’re looking forward to sharing our financial coaching and knowledge more widely.”