UK Fintech News Roundup: The Latest Stories 23/11
Every Wednesday we delve into the latest fintech updates from across the UK. This week brings updates from Remarkable Commerce, British Business Bank, Global Payments, Klarna, Atom Bank and Revolut.
UK business’s plea to the government for support
A panel of leading online shopping and payments experts has called on the UK government to do more to help UK businesses. The claim has been issued as a result of the cost of living continuing to affect consumer spending.
Brad Houldsworthproduct manager at Remarkable trade, asked the government to appoint a retail minister. Houldsworth was speaking during an online session hosted by Mike Chambersconsultant at Access PaySuite.
Brad explained the problem and highlighted the positive impact technology can have in finding a solution. He said: “We talk to retailers on a daily basis about the importance of being able to offer convenience and a great customer experience. However, we know that achieving this is a delicate balancing act, with extremely tight profit margins. As many found during the pandemic, older technology will make this an all the more difficult task.”
Seed-stage investment rises outside London, despite a fall in the capital
The use of external funding has fallen across the UK by seven per cent, according to a report from British Business Bank.
38 per cent of smaller businesses used external financing in the second quarter of 2022, a drop from 45 per cent a year earlier. Meanwhile, early stage equity investment grew by 88 per cent outside London. Despite this significant increase, equity investments in the start-up phase fell by 22 percent.
Shanika Amarasekara, Chief Impact Officer at the British Business Bank, gave his views on the report’s findings. She said: “We are seeing promising signs of growth in equity funding markets outside of London and data suggests that equity investment in the UK held up in the first half of the year. While equity investment has slowed in recent months, it is encouraging that net zero related investment appears to be growing .
Gen Z can drive payment innovation
26 percent of consumers abandoned an online purchase between December 2021 and July 2022 because the merchant did not offer the desired payment method, according to research from the payment technology provider Global payments.
Gen Z respondents are the most likely age group to have direct bank transfers as their preferred payment method, indicating a likely shift in how consumers will pay in the future.
Nick Corrigan, CEO and UK and Ireland President of Global Payments, explained what the findings could mean. He commented: “Large-scale adoption of new payment options usually reaches a tipping point when consumers demand innovation or merchants encourage adoption.
“I believe we are at an inflection point with open banking, where we are seeing interest from both consumers and merchants to take advantage of new innovations in payments. With bank payment, sellers have an opportunity to reduce both the fees and the risk of fraudulent chargebacks.”
Christmas shopping increases on Black Friday
As Black Friday looms for a new year, Klarna finds that consumers plan to buy more gifts for the holidays during the sale.
According to a consumer survey by Klarna, 73 percent of consumers will try to buy a larger share of their Christmas gift purchases during the Black Friday and Cyber Monday sales. The survey also found that 52 percent should only buy what they can afford in the sale.
Only 13 percent of consumers thought they were “likely to end up spending too much”. The results suggest that people are planning Christmas in an attempt to save money during the cost of living crisis.
Atom Bank reissues mortgage products after withdrawal
UK and app-based Atomic Bank has re-introduced a range of competitively priced “Near Prime” and “Prime” mortgage products.
After a temporary withdrawal from the market at the end of September, along with a number of mortgage offers across UK banks, two- and five-year products of up to 85 per cent LTV can now be accessed again.
Richard Harrison, head of mortgages at Atom bank, explained the decision. He said: “We are delighted to be expanding our product range by launching competitive Prime and Near Prime loan products across a wide range of LTVs.
“The average house price has increased by almost £50,000 in the last two years, which together with rising household costs means it is a challenging time to buy a home. Our award-winning selection covers a wide range of borrowers, helping those looking to refinance and reduce costs, as well as people, some of whom may have less than perfect credit, on their journey to making home ownership a reality.”
Revolut celebrates 25 million retail customers
Revolut has passed 25 million retail customers worldwide and now processes over 330 million transactions a month. After reaching the milestone, it plans to launch in Brazil, India and New Zealand.
In an effort to continue global expansion, Revolut has increased its presence in the United States over the past year. It now employs over 150 people in North America, serving over half a million retail customers.
André Silva, head of international expansion, commented: “Our mission is to unlock the power of a borderless economy, for everyone, by bringing the world’s first financial super app to every corner of the globe. This year we have taken important steps to achieve this by building our teams on the ground in India, Mexico and Brazil.”