UK Fintech News Roundup: The Latest Stories 14/09

Every Wednesday we delve into the latest fintech updates from across the UK. Today we hear about a new guide to strengthen SMEs, while Plum expands its European services.

Plum unveils equity investments and debit cards in Europe

Smart money app Plum has launched an equity investment and a debit card for its customers in France, Belgium, Spain and Ireland.

Customers can access more than 500 US stocks that can be bought or sold directly in the app. A premium tier option later this month will deliver a wider selection of stocks – up to 3,000 stocks in companies from around the world.

Plum, which has 1.3 million customers, also offers a debit card, which is 100 percent biodegradable, recyclable and available at no extra cost to its subscription customers. The plum colored VISA debit card can be used to pay online, contactless or directly at the merchant.

Victor Trokoudes, The CEO and co-founder of Plum says: “Our goal is to make Plum the only personal finance app our customers will ever need. Plum is rapidly and successfully expanding across Europe, opening new markets and launching innovative features to help people with achieving their financial goals.”

Zoho reveals significant growth in the UK

Zoho has announced 40 percent year-over-year growth and significant investment with a new team and office over the past year. It also plans to double its UK team by the end of next year.

The new office in Bletchley adds to the growing section of European offices. It has also introduced a new team of sales, customer support and marketing staff including the UK MD Sachin Agrawal.

Sridhar Iyengar, MD of Zoho Europe, said: “The UK continues to be a strategic core market for us and has so much untapped growth potential. It is our largest market in Europe and one where we have had customers for over 20 years and we are working to strengthen our market position further here. In a challenging economic landscape, we are increasing UK investment and are well positioned to weather the storm.”

VRP can end ‘subscription traps’: TrueLayer and YouGov

TrueLayer has investigated subscription spending and payments in the UK. Three-quarters of Brits spend money on subscriptions they don’t use regularly, and more than half prefer it to be easier to cancel.

Jana Reid, head of banking partnerships at TrueLayer, says: “At a time when budgets are under increased pressure, these figures show that people want more control over their finances, and too many are caught in subscription traps.

“Open banking can transform this by giving control and flexibility to consumers, allowing them to more easily view and make changes to subscriptions via their banking app.”

TrueLayer says the introduction of Variable Recurring Payments (VRP) can help solve transparency and control issues, but is dependent on banks implementing commercial agreements.

UK Government Partnership to support UK businesses

B2B trade finance fintech Trade Finance Global (TFG) has entered into a new collaboration with UK Department for International Trade (DIT) and UK Export Finance (UKEF) to produce UK Trade & Export Finance Guide.

The guidance is aimed at strengthening SMEs with the confidence and knowledge to grow their business abroad. It also provides UK exporters with detailed information on UKEF’s trade finance and insurance products for a more complete picture of the sector.

Mark Abramsglobal head of trade and receivables finance at TFG, explains: “In these uncertain times, a guide like this can really help shed light on the UK’s trade and export requirements.

“This guide hopes to combat these challenges by providing a definition of trade finance, covering key finance products, where to go for support and outlining two UK case studies. It then provides an insight into the trade cycle, together with the nuances of undertaking or extending international trading companies in the context of the financing gap.”

“Banks will not lend to small businesses”, research shows

Fintech Sonovate has published research that shows that small businesses struggle to gain access to financing from regular suppliers, and must turn to alternative forms of financing.

More than a quarter (26 per cent) of business leaders surveyed have had problems accessing finance from the main banks, over a third (38 per cent) say banks do not understand their business needs

However, a third (37 per cent) of businesses say alternative lenders make it easier to access finance, while three quarters (76 per cent) say invoice finance tools have greatly benefited their business.

Richard Primeco-founder and co-CEO of Sonovate, said: “It’s clear that business owners across the country are struggling to access funding through traditional means. Overall, banks and mainstream lenders have not kept pace with the needs of today’s businesses, lacking the agility, scalability and speed to provide organizations with critical financing.

“Alternative finance is perfectly positioned to close this gap, providing business owners with a lifeline through an incredibly challenging period, where funding is likely to be needed more than ever to grow their business.”