More moves on the PR front from the UK’s industry body Innovate Finance. It’s just launched the International FinTech Group to promote the UK as a global leader in the Fintech sector.
This move follows the publication of the Kalifa Review of UK FinTech in 2021. We’ve reported on the Kalifa review before, and blogged on it here.
Co-chaired by Innovate Finance and the Department for International Trade (DIT), the new Group will convene for 12 months to increase collaboration across the sector.
It aims to bring together organisations across the industry and the government to promote the growth of the UK fintech ecosystem, particularly across international markets.
The Group will continue the work begun by Ron Kalifa’s report, which put forward a number of recommendations on international competitiveness and called for the industry to capitalise on the UK’s fintech opportunities.
“A year on from the Kalifa Review, important steps are being taken to further advance and strengthen the UK’s world-leading FinTech sector and implement the report’s recommendations,” CEO of Innovate Finance Janine Hirt said.
“The international focus was a core part of the Review, and I’m delighted that we are collaborating with the DIT to bring this key initiative to life.”
Innovate Finance reported in January that the UK fintech sector surpassed $11.6bn last year, showing more than a 200 per cent annual increase.
This puts the UK in the second top destination in the world for fintech investment, behind the US but ahead of the next six European hubs combined, cementing the country’s position as a leader in the field.
Loan Auction Latest
All these loans can be held, up to £20,000, as Innovative Finance Individual Savings Accounts (IFISAs). IFISAs are explained in more detail below. Here’s the latest from the auction room:
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.