FinTech Set To Lift Off – Plus Breakfast Event News

One loan offer closes, another opens. Money&Co. is hosting two loan offers, both risk-rated A, on offer – with more to come. Our platform brings carefully vetted small companies seeking funds to grow together with individuals seeking good returns on capital. Money&Co. lenders have averaged over 8 per cent across the more than £11 million facilitated in more than four years. There have been no bad debts.

Unsurprisingly, Nicola Horlick, Money&Co.’s CEO, is upbeat about the future of peer-to-peer (P2P) lending, which is part of the fast-developing world of financial technology (FinTech). Our friends at Business Cloud report her views:

FinTech in the UK has a bright future as people get used to the idea of using the internet to invest.

Horlick, who has been a leading fund manager in the City of London for over 30 years, will be sharing her insights at BusinessCloud’s ‘Future of FinTech’ event in London on Thursday July 12.

Dubbed ‘superwoman’ in the late 1990s as she juggled a top City job with the demands of raising six children, she is now the CEO of Peer-to-Peer expert Money&Co.

She believes that the traditional world of financial services is seeing a move towards technology as people become more comfortable investing online.

This has been brought about by various changes in the wider landscape, such as the Retail Distribution Review – a set of rules implemented in 2013 aimed at introducing more transparency into the retail sector.

“In the UK, the RDR resulted in many retail clients being cut off by their IFAS (Independent Financial Advisors) and so they now invest through sites like Hargreaves Lansdown,” she told BusinessCloud.

“Internet banking is also huge in the UK and so the more that people get used to managing their money and investing via the internet, the greater the opportunity for FinTech companies.”

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A Process Guide To Innovative Finance ISA Investment

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:

  • Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
  • Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
  • Step 3: Buy loans in the loan market. Once you’ve put cash in your account it will sit there – and it won’t earn interest until you’ve bought a piece of a loan. It’s this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans – all loans on the Money&Co. site can be held in an IFISA – and your money will start earning tax-free interest.

The ISA allowance for 2018/19 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.


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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.