July 27, 2018
The world of finance is changing and Assetz Capital is an integral part of that change. The financial crisis, new technology, a tech savvy generation tired of the old ways and industry disruptors are creating new opportunities and alternative ways of investing.
This month, Assetz capital is delighted to be featured in the latest Raconteur report on the “Future of Investing”. The report explores the opportunities and risks that are arising from these societal changes.
With low high street rates, and the dampening effect of Brexit, more people are seeking alternative opportunities like peer-to-peer (P2P) lending.
At Assetz Capital, we help investors lend money directly to businesses through our peer-to-peer lending platform. This offers lenders a fair rate of return on the money invested but it does of course carry a degree of risk to capital if a borrower is unable to repay their loan. It is also providing vital capital to growing businesses at a time when UK banks held back £319 million of funding to UK SMEs in Q1 of 2018, according to the Bank of England.
Investment can be a force for good and at Assetz Capital we believe in fairer growth for all. Since launch in 2013 we have lent well over £500 million to UK businesses. Whilst peer-to-peer lending is still relatively small when compared to the traditional banking sector or the £500 billion ISA market, it does offer the investor new avenues.
Our Innovative Finance ISA, which launched in December 2017, has already attracted £13 million transferred from other, more traditional ISAs, and more than £45 million in total. This interest in IFISAs is not surprising as there has been a decline in cash ISA subscriptions since 2011 according to HM Revenue and Customs figures.
Our new peer-to-peer loans to UK SMEs accounted for around half those of the entire traditional banking system over the last year and a half. With over 28,000 lenders on the platform, a Defaqto 5 star rating three years in a row and our ‘excellent’ rating on Trustpilot, we are making a positive impact in the alternative lending market.
The Raconteur report is published in The Times and is also available for download here.