Goji has been selected to launch the Innovative Finance ISA (IFISA) by newly authorised P2P platform Landbay; bond investment platform UK Bond Network; crowd bond provider Downing; and SME-focused P2P platform Peer Funding.
These players have selected Goji to build and integrate a fully managed IFISA service.
First movers in the space are working with Goji to prepare for the anticipated surge in investor take up ahead of the 2016-17 tax year deadline. Those who are already fully authorised by the FCA, such as Landbay, Peer Funding, Downing and UK Bond Network, are in a strong position to take the lead.
The IFISA came into effect in April of last year, with many platforms citing anticipated returns in excess of 8 per cent per annum. Following an authorisation backlog, many firms are now preparing to go live with the first IFISA products, giving investors the potential to earn much higher rates of return than many traditional bank or building society cash ISA accounts.
In an increasingly competitive crowdfunding market, firms offering the new investment vehicle are finding themselves a step ahead of the competition as the IFISA quickly becomes an easy differentiator in the eyes of investors. Goji is calling on P2P platforms to act now before the end of the tax window to capture the increased interest in the IFISA.
Jake Wombwell-Povey (pictured), Goji co-founder and chief executive officer, says: “We’re signing up an increasing number of platforms who are keen to offer their investors a best of breed IFISA service. There is a great deal of complexity in bringing the IFISA to market and we are focused on ensuring that it is as easy as possible for investors to access this new opportunity to drive returns. Interest in this new and attractive investment vehicle is not surprising given the low yields available on traditional fixed income and savings and increasing inflation.
“The IFISA is a great product for investors, and firms know that they need to launch their IFISAs before the big investment businesses start clogging up the airwaves in the traditional ISA season of February and March. With the end of the tax year approaching, we’re readying our customers for the surge in demand predicted by industry experts. Given current figures, it is easy to see why many thousands more investors will choose to invest in the IFISA before the April deadline. Then of course things will get really exciting with the new GBP20,000 p.a. ISA threshold kicking in from April 2017.”
Landbay’s COO Julian Cork says: “The IFISA is a fantastic opportunity for current and future investors to place a tax-free wrapper over their peer-to-peer investments with Landbay and other fully regulated businesses. We are delighted to have chosen Goji to support us in doing this both time and cost efficiently and we are on track to launch our property-backed ISA before the tax year is up.”
Goji manages the administrative complexity around IFISAs for crowdfunding platforms, enabling them to quickly and efficiently offer the new IFISA and effectively access new investor markets. Since the organisation’s launch in March of this year, backed by over GBP1 million of investment from fintech angels and investors, Goji has launched a range of products designed to improve understanding and access to the P2P finance market.
