Innovative Finance ISA (IFISA) providers are hopeful that efforts to boost awareness of the tax wrapper will reap benefits this ISA season.
Narinder Khattoare, chief executive of Kuflink, said the peer-to-peer property platform has seen steady increases in new IFISA investment year-on-year with 2019/20 set to continue this upwards trend.
“As interest rates on standard building society and bank accounts remain as low as they are, we believe that our IFISA will continue to be a strong candidate for further investment inflow, offering a good balance between risk and reward,” he said.
Meanwhile, Stuart Law, chief executive of Assetz Capital, said that the platform expects “another strong performance this ISA season”, having already broken the £100m investment milestone into its tax wrapper.
Other platform executives were a little more cautious. Uma Rajah, co-founder and chief executive of property investment firm CapitalRise, called the IFISA “a fantastic product” and noted that more and more people are becoming aware of it.
However, she highlighted that there is still some way to go.
David Bradley-Ward, chief executive of asset-backed lender Ablrate, said that IFISA inflows have been increasing as there has been greater awareness of the IFISA over the past few years, but agreed that more education is still needed on the range of products in the market.