Fidelity International signs Fintech Pledge
Fidelity International has become the first asset manager to commit to the Fintech Pledge.
The Fintech Pledge is an initiative of the Fintech Delivery Panel, supported by HM Treasury (HMT), to accelerate the growth of the UK’s fintech sector. A world-first, the Fintech Pledge sets standards for the establishment of efficient and transparent commercial partnerships between financial institutions and fintech firms.
By becoming a signatory, Fidelity has committed to adhering to the pledge’s five principles, ensuring productive relationships with prospective fintech partners:
Fintech Pledge Principles
- Provide clear guidance to technology firms on how the onboarding process works through a dedicated online landing page
- Provide clarity to tech start-up firms on their progress through the onboarding process
- Provide a named contact, guidance, and feedback
- Encourage good practice and improvement
- Commit to implementing this process six months from signing this pledge and providing bi-annual feedback in the first year
Alokik Advani, Managing Partner, Fidelity International Strategic Ventures, said: “Engaging with start-ups is a vital component for our business and allows us to continue to drive forward our efforts to incorporate technological innovations for our clients. We will continue to embrace new and exciting technologies and look forward to partnering with yet more start-ups in the future. Fidelity International is delighted to be supporting the Fintech Pledge and are proud to be leading the way for the asset management industry.”
Fidelity already has partnerships with several fintechs through the programme, including AI fintech SteelEye and investment platform Moonfare. Under the agreement, through its digital platform, Moonfare will provide access to private market strategies for Fidelity’s institutional and wholesale clients. This partnership addresses an increasing demand from investors aiming to achieve attractive returns by adding alternative investment strategies to their portfolios.
Fidelity joins original signatories Barclays, HSBC, Lloyds Banking Group and Santander, as well as representatives from some of the UK’s leading fintechs, including Atom Bank’s chief customer officer Edward Twiddy.
Once a firm signs up to the pledge, it has six months to implement the principles and practices, with the new process relying on banks and financial institutions giving clear guidance to fintechs about things like the onboarding process and how to encourage best practice in the industry.
Professional investors expect cryptocurrency trading to boom
Research from blockchain-based derivatives trading platform CloseCross has found that 57% of professional investors around the world responsible for around $380billion in assets under management believe the level of cryptocurrency trading will continue to rise next year with 29% expecting a significant rise and 28% expecting a slight increase.
CloseCross CEO, Vaibhav Kadikar, said: “The cryptocurrency market has gone through wild volatility this year, but professional investors still expect trading levels to increase over the next year although they inevitably have different views on the performance of individual currencies.
“At CloseCross we are seeing traders predicting price stability for Ethereum and Bitcoin indicating that the trading community does not seem to be worried about any downward price pressures and the bears are still not at play.
“Our platform offers CloseCross Crowd Wisdom which provides real-time data on the views and investments of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.”
Optimism for the future of crypto
Recent research from the UK’s financial regulator the Financial Conduct Authority shows retail investors share optimism about the future of the market – the number of people holding cryptocurrencies in the UK has increased to 2.3 million and over half (53%) of crypto users have had a positive experience.
CloseCross’s research found more than half (51%) expect the value of Ethereum to increase over the next 12 months with 18% forecasting a dramatic increase in its value while 46% predict Bitcoin’s value to increase over the next year with 19% expecting a dramatic increase.
Around 36% forecast Bitcoin’s will drop over the next year with 16% predicting dramatic falls while 32% believe Ethereum will see prices drop with 10% forecasting dramatic decreases.
Just 21% of professional investors including hedge funds, wealth managers, institutional investors, fund managers, and IFAs believe trading levels will drop over the next year and only 4% expect a dramatic drop.