Every Wednesday, we delve into the latest fintech updates from across the UK. This week brings updates from Coupa Software, Trading Browser, WPS Advisory, CityIndex and Starling Bank.
Recession could force a wave of layoffs
Up to 96 per cent of UK businesses are finding it difficult to maintain a competitive edge, revealed business spend management company Coupa Software. The firm warns that should a recession hit in the next six to 12 months, just under a third of companies (27 per cent) will reduce their workforce.
Currently, UK finance leaders suggest that the biggest issues 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) suggests that layoffs are the last resort to cut costs. Seventy-seven per cent believe that, while this solves an immediate problem, it creates further issues in the long term.
Tony Tiscornia, chief financial officer at Coupa, said: “Economic volatility calls for a strategy of managing costs intelligently, rather than hurrying to cut costs reactively. The ability to do this hinges on having a wealth of data that is accurate and timely to inform decision-making.
“Resilient companies use intelligent spend 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” drastically increased by 434 per cent in the UK on 7 February 2023, after the Bank of England and Treasury released a consultation for a digital pound.
A spokesperson for crypto trading guide Trading Browser also commented on the finding: “The spike in search for digital currencies indicates that the public is eager to familiarise themselves with this trend. Digital currencies are fast becoming common in the central banking environment.
“However, its acceptance will be successful if measures are put in place to ensure transactions are made in a highly secure digital eco-system.”
WPS becomes lead pension adviser for MPs
WPS Advisory, owned by independent financial advisor deVere Group, has been named as the lead pension adviser for UK Members of Parliament (MPs).
The WPS team will provide guidance, modelling and opportunities for British politicians within the scheme. The firm ultimately aims to support them to achieve their long-term financial goals in retirement.
Nigel Green, CEO and founder of deVere Group, commented on the news. He said: “The choosing of WPS to advise the UK’s official elected representatives and lawmakers on their own pensions is a testament to the world-class expertise and skill of our firm.”
GDP is the most confusing financial term
‘GDP’ is considered the most confusing financial term in the UK – revealed financial services and investment company CityIndex 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 yearly 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 offering
Starling Bank has launched a new savings product for small businesses. The ‘1-Year Business Fixed Saver’ offers a fixed interest rate of 2.5 per cent for one year on balances of £2000 or more.
Funds deposited into the business account are not accessible to spend or withdraw 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 savings product for personal customers just over a month ago, now it’s time to reward our business account holders with guaranteed returns, especially in this period of economic uncertainty.”