Funders which rely on financial technology told Bridging & Commercial Distributor that trust must be earned by creating systems that delivered a strong track record as well as delivering for customers.

The news follows a breach that halted trading at a bitcoin exchange platform that allegedly lost around £54m worth of bitcoin.

“Criminals have always and will always try ways to get you to reveal passwords and PIN numbers, but both traditional banks and fintech companies constantly stress they will never ask you for this information by email or phone,” said John Davies, director of Just Cash Flow PLC.

Just Cashflow has launched fintech innovations including an app which businesses can use to manage their finances on the go.

“Naturally, our very first question is how can this be done in a safe and secure way – this is the approach I regularly see both traditional banks and fintech companies taking,” John added.

“This focus is essential as fintech is increasingly weaving its way into our personal and business lives.”

Peer-to-peer platforms rely heavily on fintech and John Goodall, CEO and co-founder of Landbay, felt that transparency was key to earning trust and credibility. 

“Trust cannot be earned overnight, but it will be awarded to those who deserve it. 

“All financial services firms, whether tech-enabled or otherwise, should follow best practice and regulation. 

“Collective efforts can help, for example the Peer-to-Peer Finance Association now mandates its members to publish their full loan books, and this transparency has certainly added trust and credibility to its members.”

Rhydian Lewis, CEO and co-founder at peer-to-peer platform RateSetter, said the company was doing many things to help build trust. 

“We believe that there are no shortcuts to trust: it must be earned by building a strong track record and consistently delivering for customers. 

“We have set new standards in transparency and openness, for example publishing our full loan book and other platform data; and we have invested in building a strong team of experienced risk professionals and an award-winning customer services department. 

“We also created the Provision Fund, which has meant that to date no individual investor has ever lost a penny on our platform. 

“While this is not a guarantee for the future, it is a record which we [are] proud of and highly incentivised to maintain.”

Chris Hancock, CEO of Crowd2Fund, agreed adding: "I believe most investors are aware of the risks and potential rewards when investing via FinTech platforms and firms need to ensure investment opportunities are always communicated in a clear, balanced and not misleading way along with highlighting the risks to investors.

"FinTech companies need to take a long term view of the sector and ensure that security, compliance and diligence is core to the companies culture and brand."

John Goodall concluded: “It’s hard to make a broad statement about the safety of fintech as the term spans so many different products and services.

“Within peer-to-peer lending, for example, platforms are encouraged to be transparent and inform consumers of any risks associated with rewards of investing their money and in turn it is the consumers’ responsibility to assess whether or not the investment is right for them.”