The House Crowd today begins a campaign to encourage Money Saving Expert to cover the crowdfunding sector in its news and advice pieces. As the foremost online source of consumer finance information in the UK, we feel it will be crucial in encouraging whistleblowing of ill-conceived and poorly performing crowd funding outfits. Money Saving Expert would also encourage growth in a fast-emerging sector that is providing sound and effective financial solutions to hundreds of thousands of consumers across the country.
To kick start our campaign we have contacted the Editors of Money Saving Expert by post and email with the following letter.
We are also encouraging you, our crowdfunding aficionados, to get involved by contacting them on their social media channels and asking Money Saving Expert to #getwiththecrowd. Feel free to send a link to this post along with your post.
Twitter: @MoneySavingExp @MartinSLewis @MSE_GuyAnker
Dear Guy Anker.
For many years now, Money Saving Expert has been bringing sound advice and money saving tips to consumers across the country; the latest and most up to date personal finance guidance yet it has come to my attention that your editorial policy has not extended to crowd funding.
As a greater number of people dip their toe into the waters of this fast emerging investment channel, and more business enter the arena – the number of crowd funding websites has grown from 1,100 to 2,700 in the past year alone – there is a greater need and responsibility to educate and inform consumers about their options, benefits and risks.
I am managing director of The House Crowd. As the world’s first property investment crowdfunding platform, we are one of a new breed of innovative businesses emerging from the birth of crowd funding. We offer a transparent and low risk investment in residential property (from £1,000), offering fixed, healthy returns for ordinary people above and beyond what traditional investments are able to offer.
Crowdfunding is climbing up the national news agenda at quite a rate. It has already proved itself as a successful alternative for investors and those looking for financial backing. Crowdfunding is part of a whole internet revolution that is giving power back to the people and creating a global community that can interact with each other, cut out big institutions and join forces for the common good. Money Saving Expert gives power back to the people for the common good in a similar manner.
The House Crowd has succeeded in injecting people power in to the once ‘elitist’ UK property market. A recent survey of our investors showed that 67% felt cut off from property until a service like ours came along – we have brought property to the masses. This is the beauty of legitimate and credible crowd funding operations – they tap into ordinary consumers who want to earn more from their hard earned money.
The Financial Conduct Authority announced new regulations for crowdfunding businesses earlier this year, and further legislation is expected to ensure there is a regulatory and legal framework for protecting investors.
As with any fledgling industry, the rate of change is astonishing, and as with any financial product the scope for abuse and mis-selling is abundant. In our business, we seek to champion transparency across the crowdfunding sector and be a source of trustworthy guidance where people can go to hear about the benefits and risks. We hope you will take up this mantle, and carry those messages to a broader audience.
There is clearly a huge appetite for more information on crowdfunding, and it is an industry worthy of note. I hope you will consider giving your readers more information on this topic.
Managing Director, The House Crowd