The Continued Rise Of The Robots In The Financial Sector – Plus Loan Latest
Robo advice? Robo investing? That’s just the start for the financial sector, as FinTech moves to the fore, according to our friends at the Judge Business School. The Cambridge Centre for Alternative Finance (CCAF), at the University of Cambridge Judge Business School, has just published a new report on artificial intelligence (AI) and the future of financial services, covered by Crowdfundinsider.
CCAF is the leading research entity covering the global ecosystem of Fintech from online capital formation, to blockchain and more. This most recent report highlights the paradigm shift taking place as very sophisticated algorithms are beginning to replace services once handled by individuals – if at all. The combination of AI and machine learning (ML) is expected to become an “essential business driver across the financial services industry. According to CCAF’s research, in the near term, 77% of survey respondents expect AI to possess high or very high overall importance to their businesses within two years and 85% of the surveyed financial firms have already implemented AI in some way.
The research also indicates that financial services firms will “move away from mainly leveraging AI for cost reduction” to generating new revenue streams.
Approximately two-thirds (64%) of survey respondents plan to become “AI mass adopters” within the next two years.
Loan Offer Latest
Yes You Can, rated B, for £30,000 with an 11 per cent fixed yield, is currently 48 per cent subscribed. Project Rhapsody, A+ rated with a yield of 8 per cent over three years, is currently 39 per cent funded.
Historical Performance And IFISA Process Guide
- Money&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee).
That figure is the result of over £19 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.
- Money&Co. has been lending for over 5 years and has only had one bad debt so far, representing a bad debt rate of 0.03 per cent per annum.
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:
- Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
- Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
- Step 3: Buy loans in the loan market. Once you’ve put cash in your account it will sit there – and it won’t earn interest until you’ve bought a piece of a loan. It’s this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans – all loans on the Money&Co. site can be held in an IFISA – and your money will start earning tax-free interest.
The ISA allowance for 2019/20 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.