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BREXIT-DEFYING CROWDFUNDING CAMPAIGN FOR APP TO CUT COSTS FOR MOTORISTS ATTRACTS OVER £300,000 IN FIRST 7 DAYS

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BREXIT-DEFYING CROWDFUNDING CAMPAIGN FOR APP TO CUT COSTS FOR MOTORISTS ATTRACTS OVER £300,000 IN FIRST 7 DAYS
  • Campaign set up to launch app designed to reduce cost burden on motorists
  • As a result of EU funds allocated to the launch being put on hold following Brexit

honcho

NORTH EAST tech business, honcho, has successfully secured over £305,000 in just seven days of launching a crowdfunding page on CrowdCube.

The North East-based business has already reached almost half of its fundraising target, after allocated funds from the European Investment Bank (contributed to by all members of the EU) were put on hold following the referendum.

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Rather than delay the launch of its innovative and disruptive fintech app, the team at honcho approached CrowdCube to offer UK consumers and investors the chance to take a stake in the company.

The campaign aims to raise £650,000 to help bring the app to market and has raised almost half of this through funds from over 189 investors.

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In a bid to compete with price comparison websites (PCWs), which often don’t offer consumers the best deal, honcho has created the UK’s first ‘reverse auction’ market-place for car insurance.

The app reduces costs for motorists and decreases the dependence on PCWs, by enabling insurers to bid for consumers’ business, competing with each other to offer the best value package in real time.

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Unlike price comparison websites, which charge insurers large commissions, insurers pay honcho just £1 for the right to bid as many times as they like for a single customer, allowing them to reduce premiums for consumers and incentivising them to do so in order to win their custom.

By saving insurers costs on commissions and the fees charged by price comparison sites (which can be £60 or more for a single policy), savings will be passed on to honcho customers, to further drive down premiums.

The honcho crowdfunding page can be found at: www.crowdcube.com/honcho

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Gavin Sewell, CEO of honcho, believes that crowd funding will be a vital source of capital for many new and expanding businesses after Brexit. Sewell comments:

“We are thrilled to have secured almost half of the investment needed to launch the honcho app within the first seven days of the campaign being launched. The crowdfunding page is live until the 24th December, so we are confident we should be able to reach our target of £650,000.

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“We launched the crowdfunding page out of pure necessity and we suspect many new businesses will be forced to do the same. Businesses like honcho cannot afford to wait for political negotiations to decide if funds allocated to UK regions will be released.  The JEREMIE 2 fund alone was meant to invest £120 million into businesses such as ours, and this was only one of the funds targeting regions of the UK meaning that potentially thousands of businesses are losing out.

“Crowdfunding is the logical and immediate solution for innovative tech start-ups such as honcho looking for alternative funds, and also gives UK investors the chance to support enterprises and get in on the ground floor of exciting new ventures.”

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Through the CrowdCube platform, investors, both large and small, can take a stake in honcho, which promises to revolutionise the insurance market by flipping the current price comparison market on its head.

honcho will act as a ‘matchmaker’ between customers and insurers, initially for car insurance, but ultimately across a range of other insurance products and markets.

“We believe honcho can revolutionise the insurance market,” says Sewell. “It benefits both customers and insurance companies, helping to end the blight of spiralling insurance costs which are causing misery for many, especially young motorists.

“We believe that through crowdfunding, our future customers have a chance to take a stake in a company that will make their lives better as well as hopefully offering a healthy return on their investment.”

honcho is the first online reverse auction marketplace for financial services, which will revolutionise the way people buy products and services, saving them time and money.

honcho is due to launch into the car insurance market in 2018.

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Sunak to use budget to expand apprenticeships in England

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Sunak to use budget to expand apprenticeships in England 1

LONDON (Reuters) – British finance minister Rishi Sunak will announce more funding for apprenticeships in England when he unveils his budget next week, the government said on Friday.

Employers taking part in the Apprenticeship Initiative Scheme will from April 1 receive 3,000 pounds ($4,179) for each apprentice hired, regardless of age – an increase on current grants of between 1,500 and 2,000 pounds depending on age.

The scheme will extended by six months until the end of September, the finance ministry said.

Sunak will also announce an extra 126 million pounds for traineeships for up to 43,000 placements.

Sunak’s March 3 budget will likely include a new round of spending to prop up the economy during what he hopes will be the last phase of lockdown, but he will also probably signal tax rises ahead to plug the huge hole in the public finances.

Sunak is also expected to announce a “flexi-job” apprenticeship scheme, whereby apprentices can join an agency and work for multiple employers in one sector, the finance ministry said.

“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike,” Sunak said in a statement.

(Reporting by Andy Bruce, editing by David Milliken)

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UK seeks G7 consensus on digital competition after Facebook blackout

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UK seeks G7 consensus on digital competition after Facebook blackout 2

LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.

Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.

“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.

“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”

Dowden said recent events had strengthened his view that digital markets did not currently function properly.

He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.

“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.

Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.

“Nick strongly agreed with the Secretary of State’s (Dowden’s) assertion that the government’s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.

Britain will host a meeting of G7 leaders in June.

It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.

The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.

Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.

(Reporting by William James; Editing by Gareth Jones and John Stonestreet)

 

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Britain to offer fast-track visas to bolster fintechs after Brexit

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Britain to offer fast-track visas to bolster fintechs after Brexit 3

By Huw Jones

LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.

Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.

“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.

Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.

Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.

The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.

“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.

Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.

The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.

It also recommends more flexible listing rules for fintechs to catch up with New York.

“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.

“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”

SCALING UP

Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.

“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.

A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.

“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.

The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).

“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.

($1 = 0.7064 pounds)

(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)

 

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