We're pleased to report strong interest in the new Innovative Finance Individual Savings Account (IFISA), following the award of full permissions by the financial services industry regulator, The Financial Conduct Authority.
IFISAs typically contain peer-to-peer (P2P) loans of the kind offered on Money&Co.'s site. ~But these are early days for P2P crowdfunding. Our friends at P2P Finance News report conservative attitudes amongst savers, who place easy access high in their priorities, even though they may be dissatisfied with returns on cash:
"Almost two thirds of consumers are dissatisfied with the savings rates on offer from their bank or building society, but few are prepared to take more risk with their money, research suggests...
"Just 13 per cent of respondents out of a survey of 1,000 consumers said they were always willing to take risks in order to get the best return on their money.
"Expectations of a return for their savings remains high despite prevailing economic conditions, with 44 per cent expecting a rate of return on their investments to be between five and 10 per cent.
"Savers are also demanding a higher level of flexibility from their savings providers, with 84 per cent expecting the option to access funds at short notice. Other big frustrations with traditional savings include high service fees and strict penalty charges, which has led to 58 per cent now saying they trust their bank less than they did five years ago.
"As a result of these challenges, over half of savers (58 per cent) trust their bank less than they did five years ago."
Here at Money&Co., we have reported consistently on the issues addressing these concerns. "The Holy Trinity" of security, access and yield are key criteria for investors to address. Here's an extract from one of several earlier articles on this topic.
Remember, capital loaned is at risk.We have a rigorous due diligence process and require borrowers to be debt-free ahead of facilitating a loan, and we also take a charge on the assets of the borrower as a safety net in the event of default. But do not lend without assessing risk carefully.