17 Sept, 2016 - 23 Sept, 2016
What we've been reading in the news this week...
Peer-to-peer lending 'should be guaranteed'
The Times comments on a proposal made in new study by the Bauman Institute, University of Leeds on the UK’s P2P lending and crowdfunding industry. The Bauman Institute recommends that the Government should contemplate guaranteeing qualifying consumer investments made through alternative finance platforms – if those investments benefit the economy.
Can alternative finance help build a better economy?
A new report ‘Financial Innovation Today: Towards Economic Resilience’ from the Bauman Institute, University of Leeds examines the UK’s growing alternative finance industry (including peer-to-peer lending and crowdfunding) and is calling on the government to underwrite consumer investments in the hope of encouraging wider participation from consumers.
Just Cash Flow: Confidence in alternative finance business remains
John Davies, CEO of Just Cash Flow PLC, shares his thoughts with Bridging and Commercial on the state of the alternative finance market in light of recent articles. He notes a continued demand for alternative finance reflected in a post-brexit increase that has continued well into September
Online Lending at AltFi: A New Phase for a Growing Industry
Senior Crowdfund Insider Contributor, Georgia P. Quinn shares her thoughts on the recent 2016 AltFi Conference. Summarising key speakers she notes that alternative finance industry is potentially entering a new phase; “This is a time for licking wounds, learning from mistakes and creating something stronger and more transparent than before”.
Life after Brexit: a 'renationalisation' of economic policy
Interesting article from CityWire with thoughts from defence expert Malcolm Chalmers, Deputy Director General of think tank Royal United Services Institute. Chalmers suggeststhat following the economic upheaval of Brexit, the UK will need to leave the single market and return to a ‘renationalisation of economic policy.
‘Shocking’ pension saving rate of 4%
Former Pensions Minister Steve Webb has said that the current pensions saving rate of 4% is ‘ a genuinely shocking figure’ and needs to be at least three to four times higher in order for workers to achieve a comfortable retirement.
Banks lock savers into deals of just 0.7%
According to Thisismoney.co.uk, some banks are locking savers into fixed rate accounts of just 0.7%. The FCA (Financial Conduct Authority) has moved back from stopping building societies and banks from rolling savers’ money into new fixed-rate bonds when their current bonds reaches the end of their term.
Pension warning for savers five years from retirement
Pensions company MetLife warns that savers who are five years from retirement risk a significant blow to their future income. According to MetLife the introduction of pensions freedom has actually left savers with fewer options available to guarantee their wealth after work, with many not fully understanding the risks of unprotected drawdown schemes.
*Warning: nothing in this article should be construed as advice. Your capital is at risk