What’s going on here?

The Bank of England and the US Federal Reserve have ramped up interest rates to levels not seen in over a decade, but some savers are still seeing returns as low as 0.1% on their cash accounts. That puzzling gap between high base rates and measly savings rates is the crux of the “Banking Paradox” – and it’s presenting investing services with a golden opportunity.

What does this mean?

As inflation bites and the real value of savings erodes, savers are becoming increasingly restless – and they’ve started searching for more fruitful ways to put their money to work. So, with many old-school retail banks offering meager rates right now, there’s a real opportunity here for investing services to enter the fray. After all, the BBC reported just last month that many customers are “shifting their money out of banks entirely” – drawn away by the juicier potential returns in US government bonds or money market funds. And that means a huge number of disenchanted savers are perfectly poised to become card-carrying retail investors.

Why should investing services care?

This is a chance for investing services to welcome a whole new wave of active, enthusiastic users to their platforms. But simply throwing novice investors into the proverbial deep end won’t cut it: it’s going to take knowledge, education, and a good deal of confidence too. That's where Finimize shines: a whole 90% of our members say they’ve learned something from our content, and 40% have taken action on the back of our analysis.

By licensing our content, then, investment services can welcome both inexperienced and experienced users with open arms – offering execution, education, and analysis in one place. So let’s talk about how you can turn the Banking Paradox into a win-win for investors and for your platform.