Every Wednesday, we delve into the latest fintech updates from across the UK. This week brings updates from Trust Payments, Moneyhub, CreditSpring, Payit by NatWest and Autarky Sukuk.
Trust Payments strengthens DE&I commitments
UK-based fintech Trust Payments has been busy reinforcing its dedication to diversity, equity, and inclusion (DE&I) in the UK fintech sector by seeking out new partnerships and sponsorship opportunities.
The firm is partnering with the 30% Club, a campaign looking to achieve gender diversity at the board and executive committee levels. Trust Payments also revealed it is furthering its commitment to gender equity and diversity by sponsoring a Power Hack event, organised by SheCanCode.
Daniel Holden, CEO of Trust Payments, explained what drove the decision to take these steps: “Our partnership with the 30% Club and sponsorship of the Power Hack event are concrete steps towards realising our vision of a more diverse and inclusive fintech industry in the UK. We believe that diversity fosters creativity and drives progress, and we are proud to play our part in this vital transformation.”
Cost-of-living continues to put Brits at risk
As the cost-of-living crisis pushes record numbers of people to the financial edge, with many relying on loans, overdrafts or credit, Moneyhub has warned that Brits are at risk of missing increasing numbers of payments and loan defaults.
Of those who have experienced difficulties, 10 per cent believe the product they were on was not the most suitable for their circumstances. Of these, 33 per cent said their income was not sufficient to afford their repayments, 29 per cent said their income could not account for interest rate rises, and 16 per cent said they had a history of defaults.
Suzanne Homewood, managing director at Moneyhub, said: “The pressures and financial strains of the current cost-of-living crisis is understandably causing more people to turn to borrowing to make ends meet. However, whilst these products may help in the short term, they are by no means suitable without a detailed understanding and evaluation of their ability to repay.
“Too often, the lender doesn’t have access to a full picture of their customer’s current financial situation and may use outdated bias and buffers to make a decision. This can and does lead to customers being unable to afford repayments, particularly as interest rates continue to rise.”
Mental health takes a hit due to financial worries in the UK
With a similar focus, responsible lender, Creditspring, has revealed that 30 per cent of Brits say their mental health has significantly worsened since the start of the cost of living crisis, rising to 48 per cent among 25 to 34-year-olds.
The new research also reveals that financial woes are directly contributing to a widespread decline in mental health, with 23 per cent saying that their mental health is the worst it has ever been because of money worries, increasing to 36 per cent among 25 to 34-year-olds.
Neil Kadagathur, CEO and co-founder of Creditspring, said: “These findings are enormously concerning, especially for young people who are feeling the impact of financial worry most acutely. The fact that so few people have been contacted by their bank about mental health support only serves to highlight the disconnect between financial health and mental well-being.
“There is a significant opportunity here to create more integrated, joined-up support networks for consumers, and it is imperative that we work together to address this issue head-on by providing comprehensive support systems that merge financial support with mental health resources.”
Payit introduces pay by link
Payit by NatWest, the open banking payments solution, has launched a new feature enabling business customers to send a domestic payment without requiring the recipient’s bank account details – by sending them a secure, single-use payment link.
Developed for NatWest and RBS Business Banking Mobile users, the feature provides customers with real-time visibility and full control over their payments with users receiving push notifications when a link is paid, failed, or expired. Users can also cancel active links at any time and resend expired ones.
Mike Elliff, CEO of Payit by NatWest, said: “Customer research has highlighted that businesses are time poor. A significant chunk of admin time is spent communicating with clients and customers to obtain their payee information to send them money.
“With Payit, we’re helping customers save time previously lost on admin by allowing them to pay someone without needing to know their bank account details. As a leader in open banking payments, Payit ensures we provide customers with an easy and secure way to pay someone compared with alternative and traditional methods.”
Shari’ah-compliant issuance programme
Autarky Capital Sukuk Plc has launched a new Sukuk issuance programme. The Autarky Sukuk is a type of asset-based security structured to comply with Shari’ah principles, looking to serve high net worth and sophisticated investors looking for an ethical way to generate returns.
With the proceeds from investments in the Sukuk, Autarky will offer funding to provide capital for the purchase, refurbishment or development of residential or commercial properties in the UK.
Yasin Patel, director at Autarky Sukuk, commented: “The growing demand for ethical investment opportunities has led to a surge in the number of available products on the market. Where many of these products merely tick boxes to be labelled as ethical options, Autarky’s Sukuk is structured to be Shari’ah compliant, making it an overtly ethical solution available to those of Islamic faith, and not.
“We are looking forward to helping our investors improve both their ethical and social impact, and to supporting the continued growth of Sukuk’s and wider ethical investment opportunities in the UK.”
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