Many young investors in the UK find it difficult to prioritise building and managing wealth. A recent survey by Invessed found that 42% are uncomfortable with basic investing principles, and 47% save or invest little of their income.
This lack of engagement extends to financial monitoring, with 61% not regularly checking their portfolios. To add to that, 51% feel they have little or no control over their finances.
Barriers To Investing
Young investors face several obstacles:
Lack of Financial Knowledge: Many do not understand basic investment concepts, making it hard to start or sustain investments.
High Fees: Over half avoid seeking professional advice due to the costs associated with traditional financial services.
Outdated Practices: Many find the existing financial services outdated and not aligned with their digital preferences.
Belong is a new wealth-building platform that now is available to young investors in the UK. They’re intending to open up the way for opportunities, that more people can make long-term investments in.
Belong provides stocks and shares individual savings accounts (or ISAs) and General Investment Accounts (or GIAs), supported by a Future Wealth Simulator. This tool helps users invest in six different index funds, including MSCI World, S&P 500, MSCI World ESG, FTSE All World Climate, and UK Corporate Bond.
How Belong Works
Belong’s platform allows individuals to start investing with a minimum of £1,000. The Future Wealth Simulator helps project investment growth and shows the benefits of starting early. The company promotes long-term investing, encouraging young people to begin early and take advantage of compounding over time.
More from News
- UK Joins WTO’s Digital Trade Agreement For Global Ecommerce
- Will The Latest AI Action Plan Improve AI Use In The UK?
- How AI Is Assisting Cybercriminals
- Parents Say Social Media Is The Better Option For Kids’ Finance Advice
- Freedom Holding Corp. Advances Fintech Ecosystem With Strategic Tech Developments
- Studies Reveal Mental Health Effects Of ‘Doomscrolling’ On Socials
- Meta’s New AI Can Generate Images With Text And Your Posts
- Apple Maps Finally Launches on Web
Features Of The Platform
Future Wealth Simulator: This tool helps project investment growth and shows the benefits of starting early.
Boost Loan: A five-year amortising loan option allows more money to be invested upfront, magnifying the effect of compounding. The loan has a fixed interest rate between 5-6%, and can be paid back in monthly installments.
Index Fund Options: Users can invest in different index funds, like MSCI World and S&P 500, which provide diverse investment opportunities.
What About Investment Barriers?
Co-founder and COO Samantha Rosenberg explains that many young people struggle to start investing due to a lack of confidence or feeling they don’t have enough cash. Belong removes these barriers by providing tools and support to help users take a long-term view on investing.
Rosenberg states, “Belong is changing this by encouraging young people to get started earlier, with more, and tackling the blockers that stop us from taking a long-term perspective on investing.”
Support And Funding
Belong’s market entry has been supported by a £2.95 million pre-seed funding round led by Octopus Ventures, with additional backing from angel investors such as Gautham Radhakrishnan, Ricky Knox, and Nutmeg co-founder William Todd.
Joining The Movement
CEO Avion Gray, a former product chief for Fiserv’s First Data Corporation, co-founded Belong with Rosenberg in 2021. Gray spoke on the fact that the financial industry often separates wealth management and lending, and Belong integrates these elements to provide a comprehensive service. Gray describes this integration as “a tremendous challenge, but one that came with valuable insights and learning.”
Belong encourages users to join a waitlist on its website. The company plans to offer a suite of embedded financial products and partner offers to maximise the value of future wealth. Rosenberg adds, “We are embarking on a lifelong journey with our customers, engaging them while they are younger and then serving them as their needs evolve.”
Benefits Of Belong
Early Investment Encouragement: Belong motivates young people to start investing early, helping them build wealth over time.
Integrated Financial Services: The platform combines investment and lending, providing a holistic approach to wealth management.
User Engagement: Belong engages users early and supports them as their financial needs change over time.
