The Banking Paradox: A Golden Opportunity For Investing Services

Written by

Liam Whelan


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.

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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.