Lendwise sees strong IFISA demand boosted by Zopa and Funding Circle inflows
Lendwise has seen strong demand for its Innovative Finance ISA (IFISA) since launching the tax wrapper almost three months ago, boosted by inflows from Zopa and Funding Circle investors.
The peer-to-peer consumer lending platform introduced the first education-backed IFISA in January, after completing an initial rollout to friends and family.
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The Lendwise IFISA has a minimum investment of £1,000 and all investments through the tax wrapper are used to fund the platform’s education loans, which are primarily used by post-graduate students seeking a fixed rate loan to fund their studies. Lendwise is targeting nine per cent returns this year on average.
Kypros Mouzouros, co-founder of Lendwise, said that he has already seen strong demand for the IFISA and transfer-ins have mostly come from investors in Zopa and Funding Circle, which have both exited the retail P2P lending space this year.
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“Transfers have come mainly from investors in these two platforms,” he said.
“I cannot imagine anyone being in the P2P space offering an IFISA, not targeting a portion of this money.
“Considering that we are completely new in this space, it’s going really well but we will put out numbers once the product has been open for a sufficient period of time.
“Demand is high, and inflows have been coming in at a daily increasing rate since launch.”