Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
bl
April 26 2017

UK savers set to seek investment opportunities away from cash

Anna Brunetti News, Personal Finance News alternative finance, cash ISA, consumer credit, financial advisors, financial brokers, IFISA, investment, ISA, p2p, savings

RISING inflation may provide alternative finance firms with an opportunity to entice usually-conservative savers, as the vast majority of financial advisors expect Brits will move some of their cash deposits into other asset classes to prevent their cash value being eroded.

Two third of advisors think cash will lose its safe haven status and 70 per cent of them believe their clients will move part of their capital into more profitable products, a study commissioned by Investec Wealth & Investment showed on Wednesday.

Cash deposits are in fact returning way below the current level of inflation.

Read more: MetLife predicts ISA transfer surge

Average cash ISA rates have halved from 0.87 per cent to 0.43 per cent since the Brexit vote, following an opposite trajectory to core inflation, which surged by two per cent in the year to February, to 2.3 per cent.

“Whilst interest rates had remained at historic lows for eight consecutive years alongside negligible rates of inflation, cash has retained its reputation as a safe if rather unexciting asset class,” said the firm’s head of intermediary services Mark Stevens.

“However, with inflation rising significantly in recent months, many advisers believe their clients’ patience with cash will start to wear thin as they see their deposits shrinking in real terms.

Read more: IFISAs may leave investors short-changed

“It’s likely that as clients become receptive to moving higher up the risk ladder in order to generate positive returns, the role of the adviser becomes even more important.

“This creates another opportunity for advisers to work closely with their discretionary investment manager partners to deliver inflation-adjusted returns for those investors with large a portion of their assets held in cash.”

Read more: MoneyThing in no rush to launch IFISA

Collateral to launch P2P app for investors and borrowers RateSetter: Millennials are driving P2P growth in Australia

Related Posts

funding to businesses

Industry News, News, Top 3

Government to launch replacement future fund scheme

money UK

Industry News, News, Top 3

BBB sets out further details on recovery loan scheme

Forensic Expert Pressing TASK FORCE

Industry News, News, Top 3

Treasury launches £100m Taxpayer Protection Taskforce

Popular posts:

  • The House Crowd goes into administration
  • Chancellor unveils recovery loan scheme
  • Budget outlines plans for £15bn of green bonds in 2021
  • Sunak to announce stringent CBILS successor scheme
  • FCA warns The House Crowd investors against using…
  • Cyan Finance launches IFISA to help investors go green
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by