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 wrap nearly three months ago, spurred 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.

Read more: Final list of ISA managers before the end of the tax year revealed with 29 P2P lenders

The Lendwise IFISA has a minimum investment of £1,000 and all investments through the tax package are used to fund the platform’s study loans, which are primarily used by postgraduate students looking for a loan at a fixed rate to finance their studies. Lendwise is targeting an average return of 9% this year.

Kypros Mouzouros, co-founder of Lendwise, said he had already seen strong demand for IFISA and transfers came mainly from investors from Zopa and Funding Circle, both of whom left the lending space Retail P2P this year.

Read more: Six IFISAs that target returns above inflation

Read more: P2P lenders fight over £500m of Zopa money and Funding Circle IFISA

“Transfers come mainly from investors in these two platforms,” he said.

“I can’t imagine anyone in the P2P space offering an IFISA, not targeting some of that money.

“Considering that we are completely new to this space, it is going very well but we will release figures once the product has been open for a sufficient period of time.

“Demand is high and inflows have been growing at a daily rate since launch.”

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