Starling, a leading FinTech “challenger bank” still has its sights set on an IPO, Covid virus or not. Given the volatile state of the FinTech sector, some might argue this a statement of intent, not a plan. Either way, AltFi carries the tale.
“Is a listing in our sights? It’s probably not going to happen this year or maybe next year, but I do think it’s going to happen in the longer term.”
“I’ve always said I didn’t start a bank to sell out to the big boys, so there will probably be an IPO for us eventually,” she added.
At the AltFi Digital Summit, Boden also mentioned that Starling had made the decision to postpone its long-awaited European licence “for three to four months.”
Historical Performance And IFISA Process Guide
That figure is the result of over £23 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 2019/20 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.