Rural peer-to-peer platform Folk2Folk received £10.5m in Innovative Finance ISA (IFISA) investments last year, marking a new record for the lender.
This was more than double the previous year’s inflows and means that the platform has attracted £19.4m in new and transferred ISA funds since it launched its IFISA product in July 2017.
Managing director Roy Warren (pictured) said that he expects to see further growth in the year ahead, as the ISA season begins.
“We’ve very pleased to see such strong take up of our IFISA during 2019, more than doubling our IFISA business of the previous 18 months,” said Warren.
“Such consistent and reliable growth marks a strong indicator for the year ahead and I am confident 2020 will see a continuation of this growth.”
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A company spokesperson described 2019 as “a year of quiet accomplishment for Folk2Folk”, during which time its lending volumes passed £331m, and its loan book growth was forecast at 18 per cent. By the end of the year, the platform had maintained its record for zero investor losses, while offering target interest rates of between 5.5 per cent and nine per cent for its IFISA products.
“This level of interest rate for secured loan investments, combined with the fact our investors can choose where their money goes and know they’re having a big impact on rural businesses, makes the Folk2Folk IFISA a very attractive investment proposition from both a financial and ‘feel good’ perspective,” added Warren.