Easyjet Founder Launches into Peer-to-Peer Lending
With another massive name creating an innovative savings platform, it’s a clear indicator that financial services are tilting to cater for a new type of economic system — and one which offers a lot more benefits to the public.
The owner of easyJet is competing against the big names in peer-to-peer lending as part of a campaign to latch onto the Fintech market.
Billionaire investor and founder of easyJet, Sir Stelios Haji-Ioannou, is launching a new savings and lending platform under the name of easyMoney.
The first product will be “Innovative ISA” which help members of the public to invest in peer-to-peer loans which will be secured by people’s property.
Innovative Finance ISAs (IFISAs) were launched by the UK government in the past few years in order to help people invest in financial products, like peer-to-peer loans, in a tax-efficient way.
Lenders can choose whom they lend money to, what level of return they want and can minimise the risk by lending small amounts to lots of borrowers.
Because the money is used for peer-to-peer, there are higher rates of interest to be enjoyed.
Peer-to-peer lending is not currently covered by the Financial Services Compensation Scheme, however, it is regulated by the Financial Services Authority.
easyMoney will write the peer-to-peer loans which will draw capital from the ISAs which offer an annual interest of 4% for investors.
Funding Circle already offers rates of up to 7% while a new ISA from RateSetter will be launched in March.
In a statement, Haji-Ioannou, who has an estimated fortune of $1.6 billion, said “Everyday investors in the UK have gone almost a decade without real interest rates. With the easyMoney Innovative Finance ISA, we’re offering something new and taking on the big boys.”
Property developer Andrew de Candole will serve as the CEO of easyMoney. He said in a statement: “We’re offering a clear, simple alternative to a cash ISA for investors looking for real returns in exchange for a little more risk. The inflation-busting interest rates we target are streets ahead of anything the banks could contemplate.”
With more and more established brands entering this arena, it gives out a clear sign that the market is adjusting to a new type of economy. Huge changes are underway in how money, investment and savings are handled in and outside of the blockchain.
This is why HiP are so excited about their product. HiP will allow people to benefit far more from owning a property than ever before. This means that the banks and lenders are no longer in the driving seat. First time buyers will be able to own a home, by just buying a stake in it. Homeowners will be able to freely and easily draw down on any equity built up as and when. People can start to invest in property like never before. When HiP allows buildings to become liquidity, those in the market can benefit from that massively.
HiP are launching their ICO in 2018. To sign up their Token Generation Event pre-sale, head here, fill out the form, and join the revolution!
Originally published at www.hip.property on February 28, 2018.
