The robots may be rising, but the machines are not taking over completely – at least not yet. Our friends at Finextra report on some recent research undertaken by a digital bank:
78% of small and medium-sized enterprises (SMEs) call for digital transformation of banking to be balanced with a human element, finds new research conducted by Cynergy Bank.
Surveying 1006 senior decision makers at SMEs in the UK, between 2nd and 12th February 2021, Cynergy Bank has revealed that while businesses acknowledge the benefits of the digital banking revolution – with 68% agreeing that it has vastly improved their banking experience and the ease with which they can manage their finances – there is now an overwhelming desire for a blend of digital functionality and human interaction.
When asked to rank their most desired banking service, unsurprisingly, 24/7 access to customer service via an app with human contact appeared near the top of the list, with 29% of SMEs citing this as a service they would require if they were to move all business banking needs to digital only services.
This research paints a complex regional picture, with the West Midlands, Northern Ireland and the Southeast agreeing most strongly that there needed to be a correction with the digital banking revolution.
To continue to innovate in the human digital space, Cynergy Bank has announced partnership agreements with Google Cloud and Wipro Limited.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.