Future of Finance - Q4 2023

Future of Finance Q4 2023 | A promotional supplement distributed on behalf of Mediaplanet, which takes sole responsibility for its content

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Future of Fintech

Managing Your Money

Pages 03-09

Pages 10-12

Why fintech has the potential to future-proof the finance industry

Reach out to your mortgage lender now for support with payments

WRITTEN BY Janine Hirt CEO, Innovate Finance

UK fintech has an impressive track record in addressing financial challenges — from the 2008 financial crisis to the Covid-19 pandemic prompting the move to digital and online, and now in supporting individuals and SMEs through the cost of living crisis.

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ur recent Innovate Finance ‘FinTech Impact Report,’ produced in collaboration with Accenture, shows that 98% of fintechs in the UK are having a positive impact on the United Nations’ sustainable development goals. More than a quarter are directly addressing inequality, and more than a third are contributing towards peace, justice and strong institutions.

Cutting-edge digital payments infrastructure The ongoing positive impact of UK fintech on not only financial services but wider society is clear. Yet, slow progress around developing smart, effective and timely regulation risks holding the sector back from its full potential.

Our digital payments infrastructure is a prime example of the opportunity available to the UK to be at the forefront of cutting-edge technology that is transforming financial services for the better. Consumers and businesses in the UK made 17 billion contactless payments in 2022. Fintech and financial innovation have fostered streamlined, cost-effective and nearinstantaneous payment solutions.

More secure and convenient payment platforms The growing adoption of digital wallets, peer-to-peer payment apps

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and blockchain-based platforms are just a few examples of such transformation. These innovations make payments more efficient, secure and accessible; reduce friction in financial transactions; simplify the lives of consumers; and offer businesses enhanced options for managing their finances. It is now critical that we further progress with a comprehensive and cohesive strategy for payments.

UK Fintech attracted over $12.5 billion of investment funding in 2022.

With an estimated 46% growth yearon-year by number of employees, UK fintechs are a driving force for the country’s economy. It is critical that consumers remain financially included, with access to intuitive tools for budgeting, savings and investing.

What we need to build an inclusive financial future We must not underestimate the positive impact of the UK fintech sector on our daily lives. By embracing technology, fostering a regulatory framework that both protects the consumer and allows them to benefit from innovation and supporting this thriving sector of our economy, we have the potential not only to navigate today’s financial challenges but to build a more resilient and inclusive financial future for all.

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Mortgage lenders are ready to help their customers who are worried about paying their mortgage — all you have to do is reach out. Reaching out won’t affect your credit score.

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igher interest rates mean that many mortgage customers, particularly those coming to the end of their fixed-term deals, may face a considerable rise in their monthly repayments. In response, many banks and lenders in the UK have signed up to the Government’s ‘Mortgage Charter’ to give borrowers reassurance and support through potentially challenging times.

Contact your mortgage lender as soon as possible The sooner you get in touch with your lender, the better. Don’t wait until you have missed a payment, they are ready to help even if you are up to date with your payments. The earlier you contact your lender, the more options they will have available and the sooner they will be able to help.

Lenders have trained staff who can help you consider the different options and find one that is right for your specific circumstances.

What can my lender do to help me?

Lenders can offer a wide range of tailored support depending on your circumstances. This could include extending your mortgage term to reduce your payments, a temporary switch to interest-only payments or a range of other options like a short-

WRITTEN BY Charles Roe Director of Mortgages, UK Finance

term payment deferral or reduced monthly payments for a period.

Am I eligible for help under the Mortgage Charter?

Signatories to the Mortgage Charter have agreed that customers who are up to date with their payments can: • Switch to interest-only payments for six months.

• Extend their mortgage term to reduce their monthly payments and have the choice to revert to their original term within 6 months by contacting their lender.

In addition, lenders signed up to the Charter have committed that: • Customers approaching the end of a fixed-rate deal will have the chance to lock in a deal up to six months ahead. They will also be able to manage their new deal and request a better like-for-like deal with their lender — if one is available — up to a few weeks before their new term starts.

• A borrower will not be forced to leave their home without their consent unless in exceptional circumstances, within 12 months of their first missed mortgage payment.

Contact information: uk.info@mediaplanet.com or +44 (0) 203 642 0737

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Electric vehicle popularity and growth set to accelerate into 2024 the road, and what technologies are needed to support it? According to feedback from clients, the potential use of multiple apps adds confusion and uncertainty. WEX has already successfully streamlined conventional fleet fuelling with our payment card, so we have learnings to inform hybrid fleet management.

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Vehicle performance Another area of interest centres around vehicle performance.

Manufacturer-quoted figures aren’t always replicated in the real world as ideal driving conditions are rarely consistent away from the test track.

Fleet managers are naturally curious.

On one hand, there may be pressure to look at greener ways of working but, conversely, they must be certain the level of service provided is the same, if not better, with a hybrid fleet.

Anecdotal evidence suggests EVs attract new drivers due to their benefits, such as overnight charging and ease of use.

Electric vehicles are increasingly commonplace, but some fleet managers have been hesitant to adopt the trend, and commercial viability is one reason why, explains Carlos Carriedo, Chief Operating Officer, International at WEX.

WRITTEN BY Carlos Carriedo Chief Operating Officer, International, WEX

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lectric vehicles (EVs) are gaining popularity in private motoring, but their integration into commercial fleets has been less confident. This is partly due to manufacturers’ focus on private vehicles and fleet managers’ cautious purchasing decisions.

However, 2024 is expected to see significant progress made around the transition to electric or mixed energy fleets due to a better understanding of their operational benefits, the launch of new vehicle models and a growth in charging infrastructure.

Overcoming the hurdles Not all parts of a fleet are suitable for switching to the current range of EVs, but for categories that are, there are positive signs. External factors are driving a shift in business perspectives as fleet managers consider adding EVs into their fleet alongside traditional gas-powered

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vehicles. EVs offer lower operating costs due to reduced maintenance, while addressing environmental concerns. Additionally, anecdotal evidence suggests EVs attract new drivers due to their benefits, such as overnight charging and ease of use.

Impact on supply chains There are clearly strong and compelling reasons around transitioning to an electric or hybrid fleet, but there also needs to be a clear understanding about how the switch will impact established business practices.

Servicing a complex supply chain, with fluctuating routes, using conventional vehicles requires a different approach when EVs are deployed. Fleet managers need to be reassured that making the change won’t have negative commercial ramifications.

Charging concerns One of the biggest concerns remains charging. Should it be done in a depot, at the driver’s home or on

Simplification is key to success The next gen connectivity available from EVs is another potential benefit.

Fleet managers are gaining access to journey data and real-time feedback.

This is helping optimise their fleets in ways that were previously impossible.

Once again, though, there are concerns around added complexity, which is where the extensive experience of WEX can help – simplification is our key to success.

Delivering a competitive advantage We are actively investing in technology and partnerships, which are working towards maximising EV benefits, such as software development to ensure charging reduces costs and emissions.

With the right tools, this growing pool of data can make the lives of fleet managers easier in terms of optimising journey planning and vehicle deployment, which could deliver a competitive advantage.

The commercial adoption of EVs remains fluid. The use of artificial intelligence is coming into play, but as with all technology-led developments, it can be hard to know what will next disrupt the status quo. That’s part of what keeps this market so exciting.

Find out more at evfleet.wexinc.com

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How to build a better and more resilient UK payments industry To keep the UK payments industry competitive, its various stakeholders must work together to develop products that reflect changing technology, regulation and consumer needs.

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very time you make a payment via a digital mechanism — such as tapping your debit card on a contactless reader — the transaction is facilitated behind the scenes by a complex system of stakeholders. This is the UK payments industry at work: a fundamental enabler of commerce and society — and the fastest-growing part of fintech.

WRITTEN BY Tony Craddock Director General, The Payments Association

Challenges of staying ahead in global payments The UK has long been a global payments leader. Yet, Tony Craddock, Director General of The Payments Association — the industry body representing over 200 members across the payments value chain — believes this hardwon reputation may be slipping away.

First, there’s the challenge of keeping up with the times as new technology changes business models. For instance, the traditional ‘four-party payment system’ — comprising the payer, payer’s bank, receiver and receiver’s bank — is under pressure from open banking, which is a direct and convenient way to transfer money between two entities.

There are issues surrounding regulation. “The UK has struggled to get the balance right between innovation and regulation,” notes Craddock. “Regulators have tried to enable innovation on the one hand while controlling it on the other.”

Flexible payments industry that is responsive to change Recently, The Payments Association published its firstever Payments Manifesto, covering financial crime, financial inclusion, open banking, finance and data, cross-border payments, environmental, social and governance (ESG), digital currencies and regulation and compliance. The document outlines policy suggestions that aim to bolster the industry and drive solutions.

“To keep up with the international competition, we have to be agile and flexible and evolve our products and propositions to reflect changing technology, regulation and consumer needs,” insists Craddock. “We also need to complete the open banking revolution and push on towards open finance and data.”

How collaboration enables innovation Building a better payment system requires close collaboration between all relevant stakeholders. “We can only do this if we work together,” says Craddock. “But we need to get the right people — upstream and downstream — around the table. If they won’t come to the table voluntarily, regulation may be needed to get them there.”

Government support is crucial, too. “So far, politicians haven’t fully recognised the fundamental role the payments industry plays in enabling commerce and society,” adds Craddock. “We need the Government to provide leadership that supports our efforts to encourage people — particularly marginalised people — to use digital payments.

Why new Consumer Duty rules are good news for debt management New Consumer Duty rules mean that financial services firms need to be more customer-focused.

This is a benefit for people in debt who need to explain their income situation to multiple lenders.

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f you’re in debt, the worry can be all-consuming.

Unfortunately, this situation — which affects more of us than ever in the current climate — can be more anxiety-inducing when you talk to the entities you owe money to.

INTERVIEW WITH Dylan Jones CEO, IE Hub

WRITTEN BY Tony Greenway

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Removing the need to have stressful calls with multiple lenders Take the issue of budget forms, for example. If you are having repayment problems, your lender may ask you to fill in a budget form (otherwise known as income and expenditure form), so they can better understand your finances and the amounts you can afford to pay back.

Consumer Duty helps people dealing with debt Filling in separate budget forms for different lenders can “Statistics show that people in debt are liable to owe money be frustrating and time-consuming; new tech can take the to between six and eight different lenders,” sting out of this. For example, by using IE reveals Dylan Jones, CEO of IE HUB, HUB, you only have to fill out one form, Filling in separate a free online income and expenditure which can be shared with all your lenders. management tool. “Each conversation The information you input into the platform budget forms for they have about their financial situation is secure and only given to entities that you different lenders can will take at least an hour. That’s a number endorse. be frustrating and of extremely stressful and long phone A reasonable repayment plan can then be time-consuming; new conversations, which they’ll need to have agreed upon with each lender, removing the multiple times a year.” need for you to endure a string of difficult tech can take the However, Mark McElvanney, Client phone calls. After the budget form has been sting out of this.

Services Director, IE HUB, explains completed, the system can also perform a that, since July 31, new Consumer Duty benefits check to calculate if you are entitled regulations have made dealing with this to any additional income from, for instance, issue easier for people in debt. “These new rules set higher means-tested benefits or water tariffs. consumer protection standards for financial services firms,” “People are embarrassed to have phone calls about their he says. “It means companies have to be more customerdebt,” says Jones. “If they can be empowered to manage their focused and engage with people who owe them money in a situation in their own time, it puts them in control. More more holistic and helpful way.” importantly, it removes some of their financial anxiety — and offers them a pathway out of debt.”

INTERVIEW WITH Mark McElvanney Client Services Director, IE HUB

Find out more at iehub.co.uk

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Embracing new digital tools will help small businesses beat the ‘digital drag’ Small businesses across the UK are urged to speed up digital adoption to help them become more efficient and tackle key issues, such as cash flow and late payments.

W INTERVIEW WITH Stuart Miller Director of Industry Engagement, Xero UK

WRITTEN BY Mark Nicholls

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hile adopting digital tools can help small businesses better manage cash flow and expenditure, and potentially reduce the scourge of late payments, uptake remains slow.

businesses and their accountants have to spend on things like bank reconciliation — reducing administrative burden and giving them more time to focus on running and growing their business,” he adds.

Digitised businesses getting ahead Software boosts efficiency However, he remains concerned that digital adoption is slow, Stuart Miller, Director of Product Compliance and Industry with many smaller businesses left behind. Xero’s report, Engagement at Xero says software solutions can add ‘Beating the digital drag’, found that SMEs that digitalised greater transparency to a company’s financial accounts on saw revenue grow by 8.1%, compared to slower adopters. a day-to-day basis, offering real-time data of cash flow and Around 40% of the UK’s smallest businesses (zero to nine simplifying manual processes. He underlines the value of employees) report using emerging technologies, such as AI open banking-driven tools, like bank feeds, providing a and digital assistants, compared to 77% of larger SMEs; and digital link between a small business’s bank account and its 4 out of 10 of the smallest businesses say they fail to see the accounting software. relevance of new technologies. Miller says: “While businesses “The tech now available to businesses means they can using digital tools are thriving, there are huge numbers benefit from having real-time data to make of businesses in the UK that are digitally better-informed decisions about how to averse. We need to close that gap.” run their businesses,” he says. With high These tools are inflation and the cost of living crisis, he minimising the amount Cash flow control and e-invoicing believes it is more important than ever for Efficiencies outweigh the cost of of time small businesses investment in the software, which is an firms to better understand their figures so and their accountants they can navigate these tricky waters. allowable tax expense, explains Miller.

Digital tools like accounting software have to spend on things “Those not digitising struggle when it enable firms to see who owes money and comes to late payments as they cannot see like bank reconciliation. who has paid and what is outstanding. They better plan for the future — whether for investment, loans or buying fresh stock from are never going to be able to keep on top of a wholesaler. Having financial data instantly through an app cash flow,” he continues. “That causes fiscal worries and can means they can make informed, on-the-spot decisions and affect wellbeing and a business owner’s mental health, too.” better collaborate with their accountant or bookkeeper.

Xero’s recent Money Matters report showed that 72% of small businesses experience cash flow issues, but a quarter Open banking and financial transparency still prefer to manage payments using traditional methods With the UK undergoing a digital transformation, Miller (26%). Paying bills is crucial for cash flow; open banking tools urges small companies to start realising the value of cloud like bill payments mean small businesses can pay bills with technology and open banking before it becomes mandatory, the click of a button — avoiding manual bank transfers or pointing to HMRC’s ‘Making Tax Digital’ programme to entering credit card details. E-invoicing is also emerging as improve tax digitisation. a faster way to send and receive invoices, removing the need Via open banking, business owners can automatically update for paper or PDF invoices. their banking on the go through cash coding, such as when Miller believes tools like these can help address late they refuel, with petrol receipts going directly to their petrol payments, boost cash flow and improve productivity. “It is code account. Profit and loss reports are also readily available. allowing businesses to realise their full potential through “These tools are minimising the amount of time small technology,” he says.

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Open banking apps and data can support the financially vulnerable

Choices that will promote CBDCs that abide by democratic values With discussions around Central Bank Digital Currencies (CBDCs) intensifying and the issuance of digital public money becoming increasingly achievable, we must design choices that will promote CBDCs abiding by democratic values.

Tackling debt is a serious challenge, but there are practical ways in which open banking — where customers can consent to share their banking data with trusted third parties — can help people take control of their finances.

R WRITTEN BY Richard Newman Corporate Affairs Director, Open Banking

ecent statistics from The Money Charity revealed that, in August 2023, personal debt stood at £1,846 billion, up from £35.1 billion in 2022 — an extra £660 worth of debt for each UK adult over the year.

However, up-to-date banking data — information about daily incoming and outgoing cash — can give people a clear view of all their spending. Open banking apps can signpost people to budgeting tools to help them navigate their way out of problem debt. This includes debt consolidation and authorising professional advisory services to view this data, so they can offer targeted support.

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s part of the monetary system, CBDCs represent public goods. Their widespread adoption, should it happen, could represent a significant change in the way societies engage, circulate and exchange money. Design choices could contribute to citizen welfare and abide by democratic values and principles.

WRITTEN BY Iota Kaousar Nassr Senior Policy Analyst, OECD

Financially vulnerable individuals Those in debt are also often financially vulnerable. This means they may struggle to effectively manage their money, are prone to erratic spending or lose track of their finances completely — incurring further problem debt.

They are also less likely to have savings to help them weather a financial emergency.

Financial vulnerability affects around 47% of UK adults and can be triggered by life events such as divorce, job loss or bereavement, as well as illness or mental health conditions.

Preserving physical cash Universal access to central bank money would need to be maintained when introducing a CBDC. Continuous availability and widespread acceptability of physical cash would therefore need to be protected in jurisdictions where CBDCs are issued, as one of the ways to support those unable to use CBDCs so that they can still enjoy the benefits of access to physical forms of public money.

Identify unusual spending While financial vulnerabilities are often complex to identify and resolve, open banking data can be combined with traditional banking information to analyse unusual spending patterns, problem gambling or ‘financially destructive’ borrowing. With the correct consent, this behaviour can be highlighted to the individual or a trusted contact, allowing them to address the problem. This could be signposting tools and services that can improve their financial health or give them access to cost-effective credit.

One open banking platform, for example, has lent over £4 million to 3,000+ customers who do not have a credit score and would otherwise be excluded from borrowing.

It can quickly check an individual’s eligibility for benefits (over £16 million goes unclaimed each year) and support potential claims too.

Improving financial wellbeing Open banking apps, particularly account aggregators, can also help people in vulnerable circumstances understand their financial situation better and improve their financial wellbeing.

More than 7 million people in the UK are already using open banking-powered products and services. We expect the insights offered by open banking data and apps to play a growing role in supporting affordable borrowing, debt management and the financially excluded.

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Guarding against threats to democratic values CBDC design and implementation choices could protect individual liberties and human rights. Choices around governance and technology used can support the policy objectives of providing equitable treatment: available, accessible and affordable CBDCs. Appropriate oversight and accountability mechanisms can support the safeguarding of civil and human rights. The promotion of users’ trust particularly through security and operational resilience of CBDC systems could be a cornerstone to the success of a CBDC development.

Protecting users’ privacy CBDC design and implementation choices should consider ways to support the protection against any kind of privacyintrusive unlawful surveillance. This concerns both privacy protection as well as limits to the programmability of money or conditionality built-in CBDC design. This will prevent CBDCs from being used arbitrarily to censor individuals and exert control over users.

Built-in privacy protections, disassociability and other design choices are examples of how privacy can be included by default in potential CBDCs. Protection of users’ privacy will promote their safety, dignity, freedom of thought and expression.

Scan the QR code to read more on Central Bank Digital Currencies (CBDCs) and democratic values:

Building trust with citizens An important decision that could allow a CBDC to abide by democratic principles is the fundamental decision about issuing a CBDC. Any such policy decision would need to make sense for the citizens who will rely on it in the first place, which includes citizens’ trust in the instrument.

As CBDCs progress from concept to pilot to reality, more work is needed to carefully consider how design, technology and functionality choices ensure that democratic values are considered and embedded — to support ensuing benefits that rest on democratic principles and trust.

The article does not represent the views of the OECD and its member countries.

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Tech tools helping wealth managers communicate with clients better Wealth managers are increasingly recognising that technology can, and should, be used more widely within their organisations and also be a valuable tool for client interactions.

A WRITTEN BY Liz Field Chief Executive, PIMFA

s the trade association for wealth management, investment services and the financial advice and planning industry, PIMFA launched WealthTech last year. Its purpose is to promote better relationships between fintechs and wealth managers — to help wealth managers adopt technology to help them streamline processes, adopt artificial intelligence and onboard customers more seamlessly.

Addressing financial industry challenges This year, PIMFA WealthTech has largely focused on resolving specific industry pain points through a series of ‘Tech Sprints.’ The first of which, in conjunction with our strategic partners Morningstar, focused on the newly introduced ‘Consumer Duty’ and, specifically, the obligation on firms to communicate information in a way the Financial Conduct Authority (FCA) views is clear, fair and not misleading.

Since then, we have launched two further Tech Sprints.

One improves the client onboarding experience, with partners WealthOS, focusing on how automation could allow wealth managers to increase work accuracy, reduce the time involved in onboarding new clients and potentially reduce costs by up to 50%.

The second Tech Sprint, with leading financial technology company NayaOne, was recently awarded the Digital Sandbox tender by the FCA. It was designed to meet a challenge focused on improving industry-wide client analytics and profiling.

Helping wealth managers and their clients The Tech Sprints conducted this year have been based on consulting senior leaders in the wealth management industry. There are further planned projects for 2024. In all cases, we are being guided by both what the fintech community can deliver and what the wealth management industry believes will be of most benefit to their businesses and customers.

Over the last two years, we learned that clients want a more personalised, faster, convenient and intuitive relationship with their wealth manager. Communication with wealth managers is changing. It’s more immediate, analytical and, in many cases, more demanding.

Meanwhile, wealth managers are seeing the benefits of AI and machine learning in helping them deal with back-office functions that have, in the past, proven both laborious and costly. They are also starting to explore more client-facing solutions.

One thing that has become clear to both sides is that technological change is being embraced by the wealth management industry and its clients in new ways. The coming years will see even greater adoption of technology within financial services, and we look forward to seeing the innovations that this will bring.

What is regtech for and why is it growing in demand?

When we think about regulatory technology (regtech) and why it’s so important, it’s good to reflect on its purpose. It protects the regulated system and its participants as well as consumers who are demanding trust in a digital world.

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egtech is about adding a layer of trust using technology to enhance processes; aid productivity; identify users; produce superior reporting that can surface risks earlier; and provide more transparent and better-quality data.

WRITTEN BY Deborah Young CEO, The RegTech Association

Developing helpful solutions with regtech So, how does one, in a sea of software vendors, determine what the right technology is — fit for their use case, budget and infrastructure? Ecosystem collaboration is key — bringing regulators, regulated entities and technologists together to identify the areas of greatest need and develop products and services that can support the integration of regtech at an accelerated pace.

The RegTech Association was founded in 2017 as a member-based nonprofit, which commits to this acceleration of regtech adoption and provides the platform for the ecosystem to collaborate. It supports this by researching and showcasing — through global cooperation with industry associations, regulators and institutions.

Customers driving demand for regtech Through our research over the last two years, we have seen the emergence of institutions’ customers driving the demand for regtech. More demand for faster, safer digital

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products and services, as well as choices of providers, have a direct correlation with the environment, social and governance impacts and decisions that customers will make.

One of the biggest misconceptions about regtech is that this is startup territory. That is largely not the case; experienced ex-industry practitioners make up the bulk of the regtech industry. These founders know the problems firsthand, are deep subject matter experts and, seven years ago, were bootstrapping the establishment of the early wave of regtechs.

Regtech growth and relevance Pleasingly, we are now seeing more professional capital flowing into the sector, and 36% of the members of The RegTech Association experienced 10–30% revenue growth in 2023. Regulatory interest in regtech is at an all-time high with 80% of regulatory respondents in the last survey having onboarded regtech or suptech (regulatory use cases of regtech) in the last 12 months.

Finally, is regtech actually fintech? We don’t find muddling the two is helpful. Regtech’s customers are financial services (including fintechs) and any other regulated industry.

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Helping young people The ‘Willanthropy’ stop the snowball effect advantage: your of poor financial wellbeing WRITTEN BY Lucinda Frostick Director, Remember A Charity

Start your Willanthropy journey now on remembera charity.org.uk and create a meaningful and enduring legacy.

approach to lasting impact

In the world of estate planning, a strategic trend is emerging — Willanthropy, an innovative blend of estate planning and philanthropy, is proving to be a savvy strategy for minimising Inheritance Tax liabilities.

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illanthropy, the act of giving to a charity in your Will, goes beyond a transaction; it’s a statement of values and a testament to who you are. It’s a game-changer for those looking to preserve their wealth while leaving a lasting impact on good causes. This form of giving is increasingly recognised as a strategic financial move during estate planning.

You can give any amount to any charitable cause while taking care of family or friends.

Unlocking the benefits of giving Giving through your Will brings a twofold advantage, allowing individuals to ensure a proportion or sum of your estate (large or small) goes to the charities you care about while reducing any inheritance tax due from your estate.

How does it work? You can give any amount to any charitable cause while taking care of family or friends. All charitable gifts in Wills are exempt from inheritance tax. There are added

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From more expensive weekly shops to higher energy bills, the cost of living crisis has affected many aspects of life, and it has taken a toll on the financial wellbeing of young people.

WRITTEN BY Beatrice Nicastro Communications Executive, MyBnk

advantages if you choose to donate 10% or more of your estate — reducing the inheritance tax rate from 40% to 36%. For those who wish to leave a lasting impact, this can be a powerful and effective way to help good causes long after your lifetime.

Fundamentally, Willanthropy enables you to remember your favourite charities alongside your loved ones in your Will. By doing so, you’re not only crafting a meaningful legacy but implementing a savvy approach that can lower the tax paid on your estate.

How to donate from your Will with ease Step 1. Identify charitable causes that resonate with your values, ensuring a meaningful and purposeful legacy.

Step 2. Choose the charity, or charities, you wish to support.

Step 3. Think about what type of gift you want to leave to the charity (a percentage of your estate or residual amount, specific assets or a set sum).

Step 4. Read our guide on making a Will on rememberacharity.org.uk Step 5. Contact a solicitor or professional Will-writer to support you.

Giving from your Will is not just an altruistic move but a strategic financial approach. By incorporating Willanthropy into your estate and tax planning, you can shape your legacy while sustaining good causes and charitable services long into the future.

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yBnk is a charity that delivers expert-led financial education programmes to 7 to 25-yearolds in UK schools and youth organisations.

Together with young people, we have created innovative, high-impact and high-energy workshops that bring money to life.

Financial pressures on young people The cost of living crisis is a major worry for over half of young people. Yet, according to research from MyBnk and Compare the Market, only two of five young adults are financially literate. In addition, our 2022 research found that almost 70% of UK care leavers feel anxious about money, and four in five want more help managing their finances.

Snowball effect of poor financial wellbeing Unfortunately, the consequences of poor money management and low financial literacy can quickly multiply. For example, we hear of young people who forget to take a meter reading when moving into a property, take on debt from a previous occupant and then use highinterest loans to try to pay off their debt. This leads to a vicious cycle of debt that’s difficult to get out of.

For young people in challenging circumstances, such as young people leaving local authority care in the UK, the consequences of poor money management can be particularly severe.

Without the financial safety net of friends or family, mounting debts can quickly lead to eviction and even homelessness. These financial issues can then have further negative effects on other areas of life, including mental and physical health, relationships and self-confidence.

Visit mybnk.org for a variety of resources to help 7 to 25-year-olds learn about money in an engaging way. This festive season, give the gift of financial wellbeing and donate to MyBnk (donorbox.org/ donateto-mybnk).

Campaign promoting financial literacy MyBnk’s festive campaign for 2023 aims to tackle the snowball effect of poor financial wellbeing. The festive period can be a particularly challenging one in terms of finances. Pressure to spend can quickly turn into debt and money worries that snowball into the New Year.

The ‘Stop the Snowball’ campaign encourages young people to resist overspending and proactively deal with any difficult financial situations they find themselves in — before they snowball out of control.

The charity supported me during my Masters and their help was absolutely invaluable. Charities like Help Musicians are vital.

- Isata Kanneh-Mason | Pianist & Help Musicians Ambassador

Let the soundtrack to your life live on by leaving a gift in your will to Help Musicians. Visit helpmusicians.org.uk/giftinwill today.

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Unlocking the benefits of ETFs: a guide to easier investing Finding a way through the numerous investment opportunities on the market can often appear somewhat daunting to those who are looking to enter the world of investments for the first time.

M

ost people recognise the importance of saving money to build financial resilience and prepare for ‘a rainy day’. Others like to put something aside if they can, often in the short-term, perhaps to pay for a special celebration such as a family wedding or plan a memorable holiday to mark a milestone anniversary.

But looking to save money in the medium or even long term can often be a little more daunting because there is such a wide and diverse selection of investment opportunities out there in the market.

What are ETFs? One option is to look at ExchangeTraded Funds (ETFs). “ETFs are a quick and easy way to get started on your investment journey as they can give you access to a wide range of investment types with just one fund,” explains Pardavila-Gonzalez. “ETFs are generally lower cost than funds and there is no stamp duty to pay, which helps people invest more of their hard-earned money.”

They also offer investors access to themes such as energy, technology or emerging markets to help individuals diversify their portfolio and reduce risk. He says: “Investing is an important way to make your money work harder in the long term, and ETFs are a great way for people to get started.” Of course, all investments come with risks and you will see them fall as well as rise, and nothing is guaranteed.

INTERVIEW WITH Manuel Pardavila-Gonzalez Managing Director Customer Pensions & Investments

WRITTEN BY Mark Nicholls

Investment portfolio ETFs may also appeal to younger people or those with families who want to save but may not have as much fluidity in their cash as older people. They can also appeal to those who are making a serious investment for the first time, or those looking to enhance their existing portfolio.

To offer investment opportunities to customers, Lloyds Bank has worked with iShares by BlackRock to create a shortlist of 16 ETFs, called the ETF Quicklist. This is a shortlist of ETFs that customers can choose from and it includes different themes that are trending in the marketplace. “It is about helping customers create the basic building blocks of an investment portfolio,” says Pardavila-Gonzalez, “and designed to make investing easy, affordable and accessible for everyone.”

Investing is an important way to make your money work harder in the long term.

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Finding the right support Deciding what is a good, safe, reliable, or even more adventurous, investment opportunity may not always be clear and obvious to the average saver.

Investments expert Manuel PardavilaGonzalez, who is Managing Director of Customer Pensions & Investments with Lloyds Bank, says: “Investing is an important way for people to make their money work harder for them, potentially with bigger returns in comparison to savings accounts, when they look at investing over the medium to long term.”

He also recognises that consumers may not always be confident in going down that route. “With so much information out there, investing can seem daunting. However, investments can be accessible and simple with the right support,” he adds.

No trading fees Under the initiative, Lloyds Bank customers with a Regular Investment Plan can start from as little as £20 per month. In addition, there are no trading fees, which means it is a simple and affordable way to develop healthy investment habits, and it supports people as they work towards their financial goals.

“People can build a portfolio with our Regular Investment Plan and because they do not pay any trading fees, that means that more of their money is invested for the future,” adds Pardavila-Gonzalez.

Putting away a few pounds a month on a regular basis in an investment portfolio can help people of all ages and from all backgrounds build a significant financial nest egg to access when they need it and help them to achieve their financial goals.

Paid for by Lloyds Bank

Find out more at lloydsbank.com/ etfquicklist

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Why the cost of living crisis is spiralling into a mental health crisis The cost of living crisis has been devastating for the mental health of people across the country. But still, the Government has not taken action.

T WRITTEN BY Paul Spencer Head of Health, Policy and Campaigns, Mind

he financial problems faced by households over the last two years have been brutal. While some groups — low earners, young people and those with pre-existing mental health problems — have fared worse than others, the cost of living crisis has affected the mental health of millions.

The impacts have been severe in many cases — 2.7 million people across the country have considered taking their lives because of the impact of the cost of living crisis.

With 1.9 million people already on waiting lists for mental health support, it’s no surprise that many aren’t seeking the support they need.

Link between cost of living and mental health Research by Mind, earlier this year, suggests that the mental health of half (48%) of people in England and Wales had been negatively affected by the financial impact of the cost of living crisis, rising to nearly three-quarters (73%) for those with existing mental health problems.

The scale of this crisis has been massive. Even before prices started spiralling, we knew money and mental health were closely linked, but the cost of living crisis has left no doubt.

Government action needed for mental health This is why we must see more investment from the UK Government into our mental health services. For decades, mental health services have been seen as the younger sibling of physical health services — receiving the funding equivalent of hand-me-down, moth-eaten jumpers instead of brand-new clothing.

Going without the investment they needed for too long, the added pressures of the pandemic and the cost of living crisis have pushed our mental health services to the brink of collapse.

Despite falling inflation, this crisis is far from over, and the echoes of its mental health impacts could be felt for generations. The only way this will be tackled is by giving mental health services the investment necessary — a brutal crisis truly needs a bold reaction.

Problems seeking mental health support The issues Britain is facing are compounded by the fact that many people aren’t seeking the support they’d benefit from.

Our research showed that over half (54%) of people affected by the cost of living crisis hadn’t accessed mental health support from a GP. This is despite two-thirds saying they are feeling more anxious (66%), stressed (65%) and more depressed (64%); and nearly half are feeling lonely (47%).

Effective finance of the future: how money can look after you We are in a cost of living crisis. Energy bills have gone through the roof; essentials from food to shampoo have doubled in cost; and the idea of a holiday, for many, has become a mere dream.

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as and oil prices have increased, and the supply of basics like wheat is squeezed tight. For many of us, finances are increasingly difficult to manage — especially for those losing jobs, becoming redundant or already heavily on credit. What should we do?

WRITTEN BY Chris Skinner Commentator, CEO, The Finanser and best-selling author

Tech-enabled personal financial management These days, through apps, there are clever ways to manage money. At the basic level is what people call personal financial management (PFM). PFM analyses your financial transactions and highlights where you are spending too heavily and saving too little. You need to spend smarter to live smarter.

However, this is assuming you have income coming into your account and can afford to live. What happens to those who have no income or rely on a food bank? Do they even have access to a bank account? What if you are unbanked, have no apps and no access to PFM — what do you do?

Available financial solutions Thanks to the rise of technology in banking, there are many new services that can help. There are services like Wise, which offer pure payment services without requiring a bank account. Klarna allows you to Buy Now and Pay Later.

Coinbase offers you a cryptocurrency account, even if you only have a few pounds and, from that account, allows you to make payments using Bitcoin or other coins.

Vision for inclusive finance The world is changing. Every day, access is growing. You need to know where and look for it. Finally, my vision is for money to end up looking after you; and you won’t need to think about it. Your financial provider will be able to tell you where your money is, how it is being used, the future outflows and inflows to and from your account, where your risks are and more. With the ongoing evolution of financial services, money management should include everyone.

Accessing financial services UK Government reckons that over a million citizens have no access to financial services. That means that you have to do everything with cash and coins. More privileged people can get loans or even have savings. Those without that access need to pay everything directly and, with the current cost of living crisis, that is difficult.

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