The FinTech sector in the UK and internationally remains a hive of activity and positivity in an uncertain world.
Vestrata, a new digital wealth management platform founded by eight former employees from some of the largest wealth managers in the world, has closed a $4m investment round and officially launched, according to AltFi.
“Vestrata promises to deliver a host of discretionary, advisory and ESG investment solutions to help wealth managers control risk and reduce the cost of their investments.
The funding comes from the team’s former employers, friends and families and other mystery backers, with plans to raise cash from institutional investors in 2021.
The fintech’s leadership team consists of eight former leaders of wealth managers such as JP Morgan, HSBC Commercial Bank and Barclays Wealth Management.
“We know from first-hand experience the significant and accelerating financial and regulatory challenges faced by the wealth management industry,” said Mark Le Lievre, co-founder and CEO of Vestrata and former head of products and platforms at JP Morgan Private Bank and head of investment content at UBS Wealth Management.
“Firms now need to focus not only on managing their cost base but growing their revenues via enhanced client engagement. We understand these challenges and have built a solution to address them.”
Other members of the executive team include Chairman Doug Wurth, who previously led the international Private Bank and Alternatives businesses at JP Morgan, fellow co-founder and chief technology officer Kim Lennen, who is the former CTO of JP Morgan Private Bank and head of solutions at Vestrata, Lea Blinoff, who was previously a managing director at J.P. Morgan.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 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.