Every Wednesday, we delve into the latest fintech updates from across the UK. This week brings updates from Nosso, FCA, IBM, Mambu and Chetwood Financial.
Nosso launches child gifting service
Nosso, a UK fintech providing children’s investment accounts, has launched a new gifting service with the aim to make setting up investment accounts for children easier.
The junior ISA provider‘s newest service enables extended family and friends to gift an investment account before it has been set up. The fintech attempted to respond to research, which found that 49 per cent of parents and families said their child had no savings or investment accounts set up.
Youssef Darwich, Nosso’s co-founder and CEO, spoke on the service. Darwich commented: “Despite parents, family and friends all agreeing that giving money over a physical present to children would be preferable, many still see it as awkward and lacking the personal touch.
“We want to change the perception that gifting “cash” holds less meaning. Our app enables families and friends to gift investments and personalise these with images and messages. With our new gifting service, we’re allowing any friends or family to take the initiative and start investing.”
FCA whistleblowing reports fell during covid
A report released by Berlin-based instant cash payment service for online merchants, Funanga, highlighting whistleblowing reports submitted to the UK Financial Conduct Authority (FCA).
The report saw a significant decrease in whistleblowing reports following the covid outbreak, but they are rising again in 2022. Anonymous reports have also risen in 2022, as more workers return to the office. The research suggests that FCA efforts to encourage whistleblowers have not succeeded, that reports take too long to be actioned, and that the regulator is overlooking money laundering.
Jens Bader, CEO of Funanga, explained the meaning of the research. Bader said: “The last 36 months have been a petri-dish for increased money laundering, financial scams, fraud, and other forms of non-compliance. Meanwhile, the FCA launched a new whistleblowing initiative in 2021 ‘In confidence, with confidence’ to encourage more reporting of wrongdoing from employees in the Financial Services sector. All logical analysis would conclude whistleblowing cases would spike, yet the opposite is true. Whistleblowers fell silent in the aftermath of Covid, even if the wrongdoing never went away.”
IBM addresses traditional bank failure to attract young customers
IBM, the multinational technology corporation, has released a report on ‘How banks can cater to Gen Z customers‘.
The report highlights that 55 per cent of Gen Z place greater trust in traditional banks to resolve serious banking issues like fraud, compared to just 11 per cent who trust digital banks more. Despite this, 85 per cent of bankers still feel at a disadvantage to digital banks attracting and retaining this age group.
It also found that 91 per cent of bankers think Gen Z will have a significant impact on their bottom line over the next five years.
Ashman Bank goes live on Mambu
Mambu, the SaaS cloud banking platform, has been selected by Ashman Bank to help serve SMEs in the commercial real estate sector.
Ashman has gone live on Mambu’s cloud banking platform; using it to manage its loan offering to provide a service for conscientious property businesses and entrepreneurs in the UK.
Simon Healy, chief operations officer at UK fintech Ashman Bank, explains what Mambu could offer for its aims. He said: “Ashman will enable property entrepreneurs to move fast, win fast, be decisive and go after the opportunities they see. We’ll be entirely digital, focussed on delivering speed and a personalised service to our intermediary partners and clients. We sought a partner with the technical capability and robust cloud infrastructure to meet the needs we have today.”
Cost of living research highlights change in attitude towards banks
Chetwood Financial has revealed new cost-of-living research; highlighting that 54 per cent of UK adults struggle to save money due to inflationary pressures.
The survey of 2,000 UK adults found that 32 per cent are unhappy with the support received from their bank during the cost-of-living crisis. Only 44 per cent of those said they had visited a physical bank branch in the last 12 months.
Andy Mielczarek, CEO and founder of Chetwood Financial, said: “With inflation still sitting close to 40-year highs and energy costs rising sharply in the UK, Britons are facing some of the most difficult financial circumstances in years. In response to these challenges, many are embracing the digital revolution, seeking new methods to bolster their financial management and spending power. The resulting change in consumer behaviour has been palpable.”