24th October 2022

For Immediate Release

Media contact: Jordan Major
Finbold.com
128 City Road
London
UK, EC1V 2NX
press@finbold.com

Over 40 new challenger banks emerged in the last year globally despite economic meltdown

The global appetite for challenger banks remains high as consumers increasingly embrace digital solutions to benefit from elements such as convenience in banking. Consequently, more challenger bank operators are joining the market while defying the economic meltdown.

In particular, data acquired by Finbold indicates that as of October 2022, Europe was home to 97 challenger banks, the highest number worldwide, representing a growth of 27.63% from 76 recorded in October 2021.

Elsewhere, North America currently has 73 challenger banks, recording a growth of 15.87% from 2021's 63 banks. At the same time, in 2022, South America hosted 57 platforms or a growth of 5.55% from 54 that operated in the region as of October 2021.

The Asia-Pacific region has 47 banks which grew 11.9% from last year's figure. Finally, the Middle East and Africa accounted for the least share of challenger banks at 17, although the region recorded the highest annual growth at 30.76%.

Cumulatively, as of October 2022, there were 291 challenger banks globally. The figure represents an addition of 43 new digital banks or a growth of 17.33% from a similar period last year.

Impact of a possible recession

The report highlights that the growth in challenger banks has emerged amid prevailing fears of a recession, potentially impacting the operators differently. According to the research report:

"Overall, a possible recession presents several scenarios. The economic uncertainty can potentially end challenger banks' impressive run since, in such an environment, they will likely lose the battle to traditional competitors with the financial muscles to withstand market conditions."

At the same time, the report pointed out that:

"Similarly, with challenger banks having experienced growth in the wake of a crisis, a recession could present another opportunity. In this case, the platforms can rise to the occasion and offer products that cushion customers against market shocks."

Overall, the sustainability of challenger banks is dependent on other factors like the ability to generate profits. Notably, most entities still rely on venture capital funding to sustain growth.

Read the full story with statistics here: https://finbold.com/over-40-new-challenger-banks-emerged-in-the-last-year-globally-despite-economic-meltdown/ 

he cost-of-living crisis

·       1 in 3 over 55s are more worried than ever before about not having enough to retire

·       Over a third (34%) of employers admit they offer nothing specific to retain talent over the age of 50

October 20, 2022 - Over a fifth of those over 55 in the UK have said that they are deliberately delaying retirement due to the cost-of-living crisis, as research from Totaljobs shows how the wider economic climate continues to bite.  

The latest Totaljobs Hiring Trends Index, which offers an up-to-date view of the labour market and recruitment trends, found that a significant portion of the older population are staying in work, yet skills gaps and labour shortages continue to challenge businesses.

Older workers staving off retirement

The research found that 22% of over 55s are putting a pause on retirement due to the rising cost of living. A third (30%) went as far to say that they’re more worried than ever before about not having enough money for retirement.

Hiring trends over the last three months (July-September 2022):

The quarterly report, which surveys over 1,000 HR decision makers to give the most up to date view of the labour market, shows an increase in hiring last quarter, with 84% of businesses having recruited in Q3 versus the 79% reported in the previous quarter. 35% reported increasing their recruitment in the past quarter. 16% paused recruitment at some point in the past three months (vs 12% in Q2), with 7% actively decreasing recruitment (compared with 5% last quarter).

Retaining staff was a chief concern for over a quarter of UK businesses (26% in Q3) vs 29% in Q2, dipping slightly. The same could be said for labour shortages (23%) and a skills gap (23%) both of which have dropped from 26% and 30% compared to last quarter respectively.

Looking ahead to Q4, 53% of businesses say they are confident in being able to meet their recruitment needs, a slight increase from 50% in Q2. 

The top three job functions recruited for this quarter are operations (29%), technology (23%), sales (19%); in tandem, according to employers. The average time to hire currently sits at 6.79 weeks, on par with the 6.76 weeks it took in Q2.

Incentivising older workers:

Despite the delay in retirement initially staving off even further labour market shortages, over a third (34%) of employers admit they offer nothing specific to attract or retain talent over the age of 50.

When asked specifically, what action is being taken to attract talent over the age of 50, 21% offered support to help plan for retirement – a pertinent need, given 30% of over 55s surveyed said they were more worried than ever about not having enough money for retirement.

Looking at other incentives, 19% offered pay-rises in line with inflation, 16% offered improved flexible working options and 8% offered private healthcare.

Jon Wilson, CEO at Totaljobs, comments: “The latest data highlights that while skills shortages remain a concern, these concerns have eased ever so slightly. However, the market is by no means steady and businesses would do well to plan ahead.   

Businesses need to look at the wider context if they are hiring over 50s or have a large proportion in their workforce. For example, it’s vital to set up facilities by which these workers can share their knowledge and experience with the younger workforce to ensure that knowledge is shared across the business.

The skills shortage is still a pressing issue, so thinking about transferrable skills across the organisation will also be vital.”

Cost of living remains number one concern for businesses and employees:  

Looking ahead, the cost-of-living crisis is the number one issue facing organisations heading into Q4 (50%), with over half (55%) concerned about the impact this will have on business costs.

The issue is also weighing heavily on employees across the UK. Of those employees planning on leaving their current roles, 43% are doing so to seek a pay rise in line with, or above inflation – up from 37% recorded in February from Totaljobs’ previous research.

When asked what actions their employers would have to take to encourage them to stay, over half (52%) want to see a pay-rise in line with inflation, with 20% stating that they would expect a one-off cost of living bonus.

 

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