Every Wednesday, we delve into the latest fintech updates from across the UK. This week brings updates from Creditspring, ISSB, NatWest, the Public Accounts Committee and Shepherds Friendly.
UK teachers struggle with finances amidst rising costs
Around 18 per cent of UK teachers have been forced to rely on buy now, pay later (BNPL) payment options to afford their weekly shop, according to responsible lender, Creditspring.
Even more teachers in the UK are struggling with their finances, as 34 per cent have run out of savings and have become reliant on credit to make ends meet. Another 23 per cent have under £200 remaining in their savings to act as a buffer against the cost of living crisis.
In total, 26 per cent of teachers revealed they wish they’d never used BNPL options, with 14 per cent admitting they were unable to meet repayments – pushing them into debt.
Neil Kadagathur, CEO and co-founder of Creditspring, commented: “It’s hugely concerning that those tasked with educating the next generation – one of the most vital jobs in our society – are themselves amongst the most financially vulnerable. They shouldn’t be reliant on credit products such as BNPL, and risking long-term future debt, simply to afford essentials such as food.”
ISSB launches sustainable reporting standards
The International Sustainability Standards Board (ISSB) has launched new sustainability-related reporting standards with backing from big regulatory bodies such as the Financial Conduct Authority (FCA).
The UK government has also signalled support for the ISSB and announced that it would be establishing a mechanism for formal endorsement and adoption of the standards soon.
Sacha Sadan, director of ESG at the FCA, said: “At its launch at COP26 in November 2021, our CEO, Nikhil Rathi, referred to the ISSB as a ‘game-changer’ – and what we’ve seen over the past 18 months or so is that he was absolutely right.
“We have been working closely with the ISSB since the start and are hugely supportive of its mission to create a common, global language for companies around the world to communicate their sustainability stories in a consistent and comparable way.”
Natwest launches business banking switcher offer
NatWest has launched a business banking switcher offer for UK businesses earning up to £2million in turnover.
The offer is expected to save business customers on average nearly £2,000 over two years, depending on the size of the business turnover and transaction activity. New start-ups opening a bank account for the first time will also get 24 months of free business banking when they join NatWest, which is a six-month extension on the previous offering.
James Holian, head of business banking at NatWest, said: “As the UK’s biggest bank for business, we hope that businesses will take us up on the offer of two years of free banking to help reduce costs, and gain access to the innovative toolkit of business support we provide to SMEs in the UK.
“This new offer builds on the recently announced market-leading 3.56 per cent interest rate on our 95 day notice Savings account. While a simple switch process will save some money, the true value comes from the breadth of business expertise, insight and support NatWest provides to help SMEs start up, scale up and thrive.”
Public Accounts Commitee warns of lax government attitude
The government must do more to unlock private investment for green projects or risk missing its decarbonisation targets, according to a new report from the Public Accounts Committee.
The committee was not convinced that the government provides enough clarity to the private sector to attract the investment necessary to build infrastructure, spur innovation and drive competition to lower costs.
Laimonas Noreika, CEO of climatetech firm HeavyFinance, responded to the report: “The race to hit net zero targets requires more than just good intentions, it relies upon extensive investment, overhauling of existing infrastructure and a long-term commitment to environmentally friendly business practices.
“Many companies are keen to improve their green credentials, but without access to financial support to drive change, they are struggling to stay on track. Only by unleashing investment and setting out a clear action plan for change will the UK be able to accelerate its journey, reducing emissions and embracing renewable technologies for the long term.”
Brits fall short of ‘financially secure’ savings targets
The average Brit has just around £20,612 in their savings but most feel they need over £27,000 saved in order to feel financially secure; insurance firm Shepherds Friendly has revealed.
Meanwhile, one in seven Brits (13 per cent) have nothing at all in their savings. Brits are also dipping more into their savings for essential items during the cost of living crisis (£216 compared to £182 previously), but are taking out less for non-essentials (£187 currently compared to £219 previously).
Derence Lee, chief financial officer at Shepherds Friendly, said: “Saving money can be a challenge for many of us, even more so in the context of the current financial climate. Our research shows that whilst Brits are attempting to be more cautious with their spending by cutting down in certain areas, many are still dipping into their savings each month to keep up with increasing costs.”
