UK Fintech News Roundup: The Latest Stories 15/02
Every Wednesday we delve into the latest fintech updates from across the UK. This week brings updates from Coupa software, Trade browser, WPS consultancy, City index and Starling Bank.
Recession can force a wave of layoffs
Up to 96 per cent of UK businesses find it difficult to maintain a competitive edge, business cost management company revealed Coupa software. The firm warns that should a recession occur in the next six to 12 months, just under a third of companies (27 per cent) will reduce their workforce.
At the moment, UK financial leaders suggest that the biggest problems are rising costs of: goods and services (41 per cent), wages (37 per cent), as well as energy (32 per cent).
The majority (84 per cent) suggest that redundancies are the last resort to cut costs. Seventy-seven percent believe that while this solves an immediate problem, it creates further problems in the long term.
Tony Tiscornia, CFO of Coupa, said: “Economic volatility requires a strategy to manage costs intelligently, rather than rushing to cut costs reactively. The ability to do this depends on having a wealth of data that is accurate and timely to inform decision-making.
“Resilient companies use intelligent consumption data to execute in the present with urgency, but in a way that reduces the risk of unintended long-term negative consequences.”
UK curious about potential digital pound
Google search data shows that online searches for “digital currency” increased drastically by 434 percent in the UK on 7 February 2023, after the Bank of England and the Treasury released a consultation for a digital pound.
A Crypto Trading Guide Spokesperson Trade browser also commented on the finding: “The spike in the search for digital currencies indicates that the public is eager to familiarize themselves with this trend. Digital currencies are quickly becoming commonplace in the central banking environment.
“However, acceptance will be successful if measures are put in place to ensure that transactions are made in a highly secure digital ecosystem.”
WPS becomes the leading pensions adviser for Members of Parliament
WPS consultancyowned by independent financial advisor deVere Grouphas been appointed as the leading pensions adviser to UK MPs.
The WPS team will provide guidance, modeling and opportunities for UK politicians within the scheme. The firm ultimately aims to support them in achieving their long-term financial goals in retirement.
Nigel Green, CEO and founder of the deVere Group, commented on the news. He said: “The choice of WPS to advise the UK’s official elected officials and legislators on their own pensions is testament to the world-class expertise and skill of our firm.”
GDP is the most confusing economic term
‘GDP’ is considered the most confusing economic term in the UK – financial services and investment company revealed City index in a recent study.
CityIndex’s study found that “GDP” had the highest average number of searches for its definition, with an average of 1,995,600 annual searches.
Other highly searched financial terms also include: “Acquisition” (1,568,400); ‘Equity’ (1,336,800); ‘Principal’ (1,152,000); Asset (884,400); ‘Net worth’ (769,200) and ‘Amalgamation’ (750,000).
Starling Bank launches business offer
Starling Bank has launched a new savings product for small businesses. The ‘1-Year Business Fixed Saver’ offers a fixed rate of 2.5 per cent for one year on balances of £2,000 or more.
Funds deposited in the business account are not available for use or withdrawal for one year. Starling Bank also pays all interest earned at the end of the full 12 months.
Anne Boden, CEO of Starling Bank, explained the decision to launch the product for businesses. She said: “We launched our first retail savings product just over a month ago, now is the time to reward our business account holders with guaranteed returns, especially in this period of economic uncertainty.”
