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As one of the world’s most prominent forces in the global financial sector, London is heavily reliant on professionals who are market literate.
While advancements in digital finance have made the markets more accessible, wider regulatory challenges are amongst a plethora of obstacles to accessibility.
Tax-free trading options from Spreadex and other trading firms are relevant for higher-rate taxpayers in the United Kingdom, particularly as the government seeks ways to maximise the income from this sector.
Given the competitive nature within London, professionals must have an understanding of how market investments can benefit them. Read on as we take a closer look.
Why financial market literacy matters
Although London’s expansive financial landscape offers professionals a wide range of investment opportunities, the sector is also fraught with danger.
Understanding financial terminology and associated concepts helps individuals to evaluate risk, make informed investments and mange their assets more efficiently.
Financial technology platforms such as Spreadex have removed many of the traditional barriers to the financial markets by digitising the entire investment process.
They essentially offer a ‘one-stop-shop’ to London professionals by providing them with the innovative tools they need to be market literate.
By gaining an understanding of the vagaries of the financial markets, professionals in the capital city have a greater chance of maximising the returns on their investments.
Educational barriers to financial market literacy
A recent report co-authored by Bayes Business School’s Centre for Charity Effectiveness highlighted that a lack of financial education is a major obstacle to market literacy.
The researchers conducted market analysis on 2,000 organisations across the financial, technology, charitable and private sectors. Their key findings included:
- UK financial literacy is low in locally-focused and international studies.
- More than 20 million UK adults do not feel confident managing money.
- The UK has significant ethnic, gender, education and income gaps in financial literacy.
- Millennials possess lower financial literacy than expected.
The report recommends that financial teaching should be taken more seriously throughout the educational pathway to ensure people are market literate.
Innovative learning practices such as gamification coupled with the greater use of financial technology (fintech) are viewed as essential elements in education at all levels.
Market literacy in professionals is a win-win for employees & businesses
While London is awash with financial experts, the aforementioned report highlights why businesses across the capital must take market literacy seriously.
Financially literate employees are more likely to be able to interpret data, identify investment opportunities and make decisions which benefit a business.
They can also effectively identify and mitigate financial risks, elements which play a crucial role in the success and sustainability of any enterprise.
Internal communication improves when every employee understands financial concepts, while relationships with external stakeholders are also strengthened.
The final word
Aside from the extensive commercial benefits of financial literacy amongst employees, there are also plenty of personal advantages to be gleaned.
Professionals with financial literacy are more adept at managing their personal finances, which gives them peace of mind to be more productive in the workplace.
If the financial acumen extends to market literacy, they are more likely to be able to make sensible contingency plans for ‘rainy days’ or save for their retirement.
Market literacy and wider financial skills undoubtedly play a key role for London professionals, regardless of where they currently stand on the career ladder.
