DIRECT lending fintech specialist Goji has added a new asset custody capability to help peer-to-peer and crowdfunding platforms meet their regulatory obligations.
The platform – which provides investment platform technology to alternative lenders including CapitalRise – has added the new feature ahead of an anticipated increase in its crowdfunding clients.
“We’re excited to be onboarding a number of crowdfunding platforms who will be able to reduce their cost of operation and offer an improved customer experience by relying on Goji’s regulatory and operational capability,” said David Genn, chief executive at Goji.
Goji has introduced the asset custody feature in response to a Financial Conduct Authority (FCA) rule which requires all P2P and crowdfunding firms to safeguard client assets, either by relying on in-house capabilities, or by hiring a third party custodian.
“Running the process internally comes with a significant overhead and is fraught with regulatory challenges as unlisted assets are notoriously difficult to reconcile,” said a Goji spokesperson.
“The alternative is to use a third party custodian who will take title to the assets and are responsible for the reconciliation.
“This approach leaves crowdfunding platforms depending on the manual processes and legacy technology of these incumbents.”
Goji is FCA-authorised and operates both as an investment manager and an investment technology provider, with clients including P2P platforms Landbay and Assetz Capital.