According to the OECD report, pension fund assets exceeded USD 35 trillion at the end-2020, increasing despite COVID-19 in almost all countries. Even with the huge market size of the pension funds, Fintechs chose to provide their services in payments, challenger banks, and many more ecosystems rather than in WealthTech. Because wealth management is a niche industry which is highly complex and contains risk management of long-term liabilities.
But would that stop the WealthTech interest in the market? Not at all… Contrarily, in the last few years we have seen a trend towards WealthTech in the Fintech market. One of the reasons for this interest is that the pandemic created a shift in consumers’ behaviour which helps them to assess their finances during lockdown with the help of various WealthTech apps and platforms.
At that point in the market, we have seen various funding and expansion news in the Wealthtech ecosystem such as PensionBee, Smart Pension, and many more. All of the fresh investment was pouring into the Fintech ecosystem but it was not enough to hold the market to grow exponentially. Because something was just around the corner – it was time to sail into choppy waters.
Then “the crisis” happened…
Within the last few years, more and more Fintechs were getting into pensions, and we started to see more opportunities unlocked in the market. However, the announcement of the UK government changed the whole perspective of the market towards pensions. Individuals and various companies in the market started to feel the pressure on their shoulders, and it resulted with a massive sell-off in Gilts (UK Government Bond) and British Pound. In other words, those explanations were not enough to assuage the market’s concerns.
What can we do about this pension crisis in the UK?
We are well aware that the topic itself is incontrovertibly technical and a bit complex to read the current market behaviour. That’s why we created our course to help people who want to understand not only the pension crisis, but also the impact of this crisis on the whole financial system.
Get ready to buckle up! It’s time to explore what happened during the Pension Crisis and why there is this vicious circle in the markets at the moment. Enrol in the course now!