Today we continue our recent theme of awareness and trust in alternative finance and financial technology (aka, FinTech). HSBC, a mainstream bank,recently carried out a survey of over 12,000 consumers across 11 countries. P2P Finance News reports that "the global bank found that consumers are twice as likely to trust artificial intelligence to carry out heart surgery than for opening a savings account.
"And despite the fact that fingerprint recognition has proved to be five times more secure than passwords, almost half respondents would mistrust it, the research found.
"Only 11 per cent of them would trust any type of robo-service, such as chatbots, to open a savings account or provide mortgage advice, the bank said.
"Consumers are wary of digital innovation despite the ability of these new offerings to assess vast amounts of data and identify the best services and products, it added."
Robo advice is typically based on computer analysis of large amounts of data. At Money&Co., we believe that a customized service is best. We have an algorithm that does the initial screening of would-be borrowers. After that, the small companies seeking capital to grow are vetted by our credit committee. So far, default rates are running at under 0.2 per cent, and the yields are good (see below)
Money&Co. lenders have achieved returns of almost 9 per cent - before deduction of our one per cent fee - in the three ears and nearly £10 million of loans facilitated on our platform.