A round up of the major updates in the Finance Industry – 17th April to 21st April 2023

Current Insolvency Rates

The government released Monthly insolvency statistics for March on Tuesday, 18 April. Unfortunately, the picture looks to be rather bleak with more than 2400 companies registering for insolvencies last month. This is 16% higher than the market trends last year, and even higher than during the pandemic. It goes on to show that this influx in redundancies will significantly impact the job market and result in the risk of further layoffs for the finance industry.

Update on common scams and frauds

UK Finance data suggests that fraudsters impersonating genuine providers have cost £177.6 million in 2022. The data reveals that fraudulent activities involving impersonation of legitimate service providers have resulted in substantial financial losses. These fraudsters have been successful in deceiving individuals and organisations, resulting in significant financial harm across various the UK’s financial sector. The most common touchpoints that were compromised include emails and website links. Young adults in the 18-35 age group were most targeted.

P2P Lending

According to a report by EasyMoney, UK peer-to-peer (P2P) lending revenue is projected to reach £376 million this year. Last year, the total revenue of UK P2P lender platforms hit £335.8m. The current figure highlights a further 12% growth since then. The P2P lending market in the UK is expected to see steady growth as investors and borrowers increasingly turn to online platforms for financing needs. Its popularity as an alternative investment and borrowing option in the UK financial landscape has grown steadily. 

Open Banking

Open Banking Limited (OBL) will continue to play a prominent role in driving the transition to open banking in the UK. The organization responsible for overseeing this initiative will also support efforts that promote transparency, innovation, and competition in the financial sector. The decision follows the compliance of the UK’s six major banks, including Barclays, HSBC, Lloyds, Nationwide, and NatWest, with the regulatory requirements of the Competition and Markets Authority (CMA) for the implementation of Open Banking earlier this year. 

OBL’s ongoing influence in shaping the open banking landscape has been pivotal. Additionally, it has also announced a new regulatory framework to enhance existing payment services regulations, replacing the current CMA Open Banking Order.

Aligning Financial and Environmental Goals

The finance industry in the UK has shown positive support for the government’s updated net-zero strategy. The focus on sustainability and environmental initiatives is an important step towards aligning financial practices with environmental goals. 

In addition to this, Tide, a digital business financial platform, has urged UK businesses to initiate a global carbon removal movement by leveraging underutilised marketplaces to achieve net zero. This call to action follows Tide’s recent accomplishment of becoming the first fintech company globally to achieve 100% emissions removal through durable carbon removal methods last month.

For more such information that helps you enable informed decision making, visit Administration List. Subscribe to our platform to stay on track with the latest industry happenings delivered to your inbox!