Goji officially launches today with initial clients including Landbay, ArchOver and Assetz Capital. Goji enables P2P platforms to gain unprecedented access to new investment products and markets, including the new Innovative Finance ISA (IFISA) available from April this year.
Working with Goji, Landbay, ArchOver and Assetz Capital will be among the first to offer the IFISA to investors. Goji manages the administrative complexity for P2P platforms, enabling them to quickly, efficiently offer the new IFISA and thereby effectively access new investor markets.
Goji is working with several P2P platforms in preparation for the April 2016 launch of the IFISA. The industry expects several thousands investors to take advantage of the £15,240 tax allowance.
Julian Cork, COO at Landbay, said: “Cash ISAs make up a significant proportion of annual subscriptions but they offer some of the worst historic rates this year. So far the only alternative has been the volatile world of stocks & shares ISAs. Landbay’s ISA will provide a refreshing solution, backed by British property and offering solid returns of up to 4 percent. Working with Goji has allowed us to apply the same focus on customer experience and scale we currently offer investors to our ISA customers and we are looking forward to launching our Landbay Property Backed ISA to new and existing investors – for no charge – in April.”
Stuart Law, CEO at Assetz Capital said: “Investors in our IFISA accounts will see typical returns of between 3.75 percent and 10 percent per annum, according to the lender’s choice of account and their attitude to risk. There are three accounts on offer but we believe our unique Quick Access Account at 3.75 percent will prove to be the most popular – simply because of the ability to access funds when required and almost instantly in normal market conditions. All of our loans are backed by property and other security worth typically around 150 percent of the actual loan or greater. Investors also benefit from the protection offered by the Assetz Capital Provision Fund. To date, Assetz Capital has lent more than £100m with investors gaining around £10m of gross interest as a result. Roughly speaking, if the IF ISA had been available 12 months ago, £4 million of that interest would have been in the pockets of investors, rather than collected as tax. The availability of the IFISA will therefore revolutionise the savvy investor’s portfolio.”
Ian Anderson, COO at ArchOver, said: “As the only ‘secured & insured’ platform for lenders supporting growing UK businesses, the IFISA is a great bonus for lenders taking advantage of our fixed rate, 7 percent returns with zero default/loss record. Goji’s fully compliant, end-to-end solution allows us to maximise the opportunity and scale to support demand as the wider investor market becomes aware of the opportunities in crowd lending.”
Goji launches backed by over £400,000 investment from leading fintech angels and investors including Cocoon Wealth, the largest shareholder in UK wealth platform, Novia Financial.
Tim Levy, managing partner of Cocoon, said: “We have a particular interest in the rapidly growing technology infrastructure behind wealth management. That’s why we took a significant stake in Novia and it’s why we believe Goji is an incredibly exciting proposition to emerge in this sector. The company is led by a strong team, with deep market insight and it is the ideal investment proxy for the rapidly growing UK and international P2P sector.”
While Goji’s initial focus is on the IFISA, its future execution and investment administration propositions will enable P2P lending platforms to access new investor markets, including pensions and advised markets.
Jake Wombwell-Povey, Goji Co-founder and Chief Executive Officer, said: “P2P lending has a vibrant future, but it must diversify into new investor markets to reach its potential. Goji provides P2P lending platforms with the best route to offer more lucrative and diverse investment products. IFISAs are just one of many investments that Goji will enable P2P lenders to offer in the future as Goji seeks to take P2P lending to new markets in the UK and abroad.”
Goji is a digitally driven investment execution and administration platform that focuses solely on the P2P lending sector. It uses API-driven technology to simply integrate with P2P lending platforms. Using Goji’s hosted back office technology and operational support, P2P lenders including Assetz Capital, ArchOver and Landbay, will be able to:
- Offer complex and fully optimised IFISA products, supported by dedicated and expert operational capability, therefore saving platforms the time, cost and distraction associated with developing an in-house solution.
- Minimise the pain of ISA administration, allowing P2P lenders to manage the seasonality of investment products.
- Offer new, alternative products as they come online, both directly to consumers and via financial advisors, wealth and asset managers.
UK P2P lending reached £2.4bn in 2015 making the IFISA a lucrative proposition for P2P lenders who are seeking to fuel this rapid growth and an attractive product for investors as yields can reach in excess of 10 percent on many platforms. The opportunity is also predicted to grow further, with the industry’s annual origination volumes set to hit $24bn by 2020, according to Morgan Stanley.