iban Wallet @ Savings4Freedom

IBAN WALL: First Impressions & Review

iBAN Logo @ Savings4Freedom

iban Wallet is a fintech startup that follows an asset-backed loan investment model similar to Robocash: black box loan investing. This means that you don’t know the loans that are receiving your investment, you are only able to select the investment tier and duration.

You can invest and earn your interest daily from 2.5% up to 6% per year, being able to deposit and withdraw money daily. The minimum deposit and investment amount required is €1.

Funded in July 2016 in the UK, the company received funding through multiple crowdfunding campaigns that financed the development of the iban Wallet App, launch in March 2019 and the business development to recruiting investors in Europe (mainly from the UK and Spain) and borrowers globally.

iban Accounts do not fall under any government-backed deposit protection schemes (such as the FSCS in the UK) and all investment done is at risk. iban Wallet is not a savings account.

iban Wallet Platform Quick Review

iban Wallet offers among the lower interest rates in the business. The highlights of iban Wallet are: interest payments on a daily basis and you can deposit and request withdrawals when need to (without any charge). This was the particular element that called my attention, a fixed return with immediate liquidity.

You can sign up and invest through my referral link and get €25 as a welcome bonus after your first deposit. Since I started investing at iban Wallet in July 2019 I was impressed with how simple the platform is. It looks like a great option for earning some interest from funds you typically have waiting to be deposited into other P2P platforms and need instant liquidity.

Creating an iban Wallet investor account is straightforward. Registration is extremely simple and the platform is very easy to navigate. You need to have a phone number associated with your account to receive security codes and validation codes.

Analysis TopicPersonal Take
Type of Loans @ Savings4Freedom

Type of Loans Available

Consumer
Interest Rate @ Savings4Freedom

Average Interest Rate 

2.5% – 6% (daily interest payment)
Buyback guarantee @ Savings4Freedom

Buyback / Secured Loans

Yes (asset backed or property backed loans)
Early Exit @ Savings4Freedom

Early Exit / Secondary Market

Yes (immediate)
Autoinvest Feature @ Savings4Freedom

Auto Invest Feature

By default
Control over loans @ Savings4Freedom

Control over Loans Invested

No
Money Drag @ Savings4Freedom

Money Drag

No
Hidden Fees @ Savings4Freedom

Hidden Fees

No
Loan Duration @ Savings4Freedom

Loan Duration

1 day to 5 years
Report Quality @ Savings4Freedom

Reporting Tool

Low Quality
User Experience @ Savings4Freedom

User Experience

High Quality
Sign up bonus @ Savings4Freedom

Sign-up Bonus

25€ if you invest after creating your account by using this referral bonus link.
Evaluation @ Savings4Freedom

Overall Evaluation

6/10


iban Wallet: Origins

The first question to answer with any new P2P player is who they are and where they came from. The company was founded back in July 2016 by two entrepreneurs: Daniel Suero Alonso, CEO, Marc-Anthony Hurr, and the Portuguese Pedro Freire. The project passed through multiple different ideas and pivots, but the focus on exploring loan investing opportunities in Latin America seems to be there since the very beginning, even if now the loan originators are from all over the world, with no specific concentration region (LATAM is only one more). On a pitch deck to investors from 2016, it was possible to read: “iban – First crowdlending marketplace connecting Europe and LATAM“.

In the words of iban Wallet co-founder and CEO, Daniel Suero Alonso, in January 2017, the idea for iban Wallet came from his analysis of the P2P market:

Currently all the major players in the P2P lending space are receiving money and lending within a single country, primarily focused in Europe, the US and Asia. Alternative lending is only just arriving to LATAM, and with it the associated lower loan rates, so there’s a huge connected population waiting for this technology and business model to arrive. By lending cross-border in a mobile application, we can provide simpler and cheaper credit access to all those individuals, at fair local rates, enabling us to pass on the financial gains to the lenders that come with lending in a developing economy.

Daniel Suero Alonso, iban CEO

iban has already launched five successful crowdfunding campaigns to provide seed capital to the company – three on Crowdfunder (UK & German markets) and another two on Seedrs (UK) in April 2017 and July 2018 – attracting investors at a valuation of £20,070,491.

This money was used to create the complete app and back-end system, forming partnerships with specialist technology operators to offer secure banking and loan services, as well as opening offices in London, Sevilla, and Lisbon, as well as managing the lending operations in Latin America.

iban Wallet launched the mobile App for peer to peer lending operations in March 2019, with a new image and brand voice.

iban Wallet Founders: Daniel Alonso, Marc-Anthony Hurr, and Pedro Freire

The founders behind iban Wallet are three young entrepreneurs from Spain, UK and Portugal: Daniel Alonso, Marc-Anthony Hurr, and Pedro Freire. I want to highlight the experience of Pedro Freire prior to iban Wallet, having followed the entrepreneur path.

iban Wallet Financial Track Record

No clear data is available regarding iban financial operations. On a pitch deck employed back in 2017, the company presented more than 500 borrowers and 2000 investors using their services. With around £100,000 in deposits and over £2.7 million in loan requests. You can check the available information on the images below.

Since the beginning, the company was developed to ensure financial sustainability. From the same investment deck, it was possible to understand the proposed business model for the company.

Project Default Levels

The iban platform states an impressive 100% non-default track record. But considering that iban Wallet accounts offer a fixed interest rate, regardless of the amount, term and investments made on loans, it makes sense that this P2P lending company is capable of offering multiple protections to its investors. You exchange interest for immediate liquidity.

The company states that all the iban Wallet loans are backed by property, have a Buyback Guarantee and a Safeguard Trust which has covered all bad loans since it launched. This means that until this moment not a single investor has lost money.

iban Wallet Due Diligence

iban Wallet Project Selection Due Diligence

Before accepting the loan, iban Wallet executes a due diligence procedure for each prospective Loan Originator:

  • Diversification: there are typically several loans associated with your iban Wallet account.
  • iban Wallet performs a thorough analysis of financial statements, management quality, underwriting policy, credit scoring, investment portfolio performance, and data accuracy to ensure that the Loan Originator follows the strict risk standards of iban Wallet.
  • After the launch of the partnership, iban Wallet continues monitoring the investment for risks on an ongoing basis.
  • Only under 1% of all applicants are selected for a loan: iban Wallet selective applicant process, careful analysis of credit scores and detailed evaluation of the collateral, and low acceptance rates reinforce the safety of iban Wallet accounts.

iban Wallet Investor Protections

iban Wallet guarantees your investments even in case of default of the project. How?

Asset-backed loans

Designed specifically to offer investors an asset-secured investment. All iban Wallet loan investments offer the opportunity to receive fixed returns over an agreed investment term, with the capital being returned at the end of the chosen investment period with an interest paid daily, secured by other financial assets.

Investment underwriting policies

On an individual loan level, the loan originator issues loans in accordance with their own established underwriting and credit scoring policies, although are supervised by iban Wallet. These include not only the industry-standard processes, but also a series of advanced checks – identity, credit, affordability, and fraud – to ensure borrowers are creditworthy.

Buyback guarantee

To protect investors, all Loan Originators have a Buyback Guarantee on all loans. The Buyback Guarantee means that if the payback is delayed by more than 90 days, the Buyback Guarantee will repurchase the investment for the nominal value of the principal and the accrued interest till the date of repurchase. This is all done automatically and the interest rate of the investment product will not be affected whatsoever. This is possible because Loan Originators typically receive higher interest rates than the rate they offer to iban Wallet investors. The difference covers administrative and marketing costs, as well as constitutes the profit margin of the Loan Originators.

Safeguard Trust

The iban Wallet Safeguard Trust is a provision capital account with reserves which provides investors with protection in case any Loan Originator fails to administer the investments. To fund the Safeguard Trust, a proportional monthly balance is set aside without affecting your investment. iban Wallet collects that amount to hold in the trust for investors.

Therefore, in the unfortunate event any loan or Loan Originator defaults, investor money is first backed by the asset given as collateral to the loan, a Buyback Guarantee and finally the iban Wallet Safeguard Trust.

iban Wallet Repayment Schedule

iban Wallet accounts are investment accounts providing a fixed daily interest paid on a daily basis. This is one of the most interesting features of this P2P lending platform in comparison with others.

iban Wallet Investment Accounts

iban Wallet currently offers 4 different investment options:

You need to be aware of the simplicity of the approach but also of the slight details that can make a huge impact on your returns. For example, you have 1000€ to invest in P2P lending and waiting for the right moment to invest. Instead of keeping the money in your bank you can decide to transfer to iban to the standard iban account and earn 2.5% AER (Annual Equivalent Rate) on a daily basis until the moment to transfer the funds to your desired investment opportunity. In the case you select the option One, you only will obtain a daily interest after the first 365 days from the moment you invest, making it not a true option for experienced P2P crowdlending investors. With Mintos Invest & Access and other similar options available in the market investments for short-term are less attractive in iban Wallet.

This is my personal take on the subject, but I’m curious to learn your ideas and comments on this particular topic.

iban Wallet Skin in the Game

No information is shared if iban Wallet participates in the fund.

iban Wallet: How to Start

To start investing within iban Wallet you need to set up an account, choose one of the available investment accounts and the amount of money you would like to invest. It will take only a few minutes.

The requirements to open an account is to be at least 18 years old and be a resident in one of the countries in which iban Wallet offers its services (available in the majority of European countries and also in the United States). It accepts transfers in EUR and US Dollars.

Here is a step by step instruction: 

  1. Login or Register an investor account;
  2. Introduce your email address;
  3. Introduce your mobile phone contact;
  4. Upload documents for personal verification process;
  5. Top-up your account with funds (SEPA transfer or credit card);
  6. Choose the account to invest;
  7. As soon as you receive your funds, 25€ will be added after some days;
  8. Interest will be visible on your dashboard daily.

My experience joining iban Wallet

It took me less than 5 minutes to register on the website, upload a copy of my national card ID. I’ve funded my account through my N26 account debit card, and the funds became available to invest a few hours later.

Few days after I received the funds, iban Wallet added 10€ to my balance. You can also benefit by using my referral link to open your account.

iban Wallet: Platform Future Steps

One element that was present on all investor decks from iban was the recurrent idea of becoming a new generation of a bank.

From the list presented in the image above, only a part is complete. Let’s see what happens in the near future and explore as the solution growths.

iban Wallet: Conclusions

I look into iban Wallet as a great way to keep receiving interest from the money I actually need to keep accessible to my immediate needs. Until now, neither the N26 Account, Revolut or TransferWise were able to offer savings or investment accounts that combine daily interest payments with immediate liquidity. This is the space iban Wallet is filling for me in the near future.


Do you want to Invest?

Check among the P2P crowdlending opportunities available on Savings4Freedom, always taking into consideration that all information is entirely based on my personal experience.

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P2P Conference @ Savings4Freedom

Conference Report: Summary of the P2P Riga’19 Conference

On Friday the 7th of June, over 240 people among P2P platform representatives, P2P investors, and bloggers came together in Riga for the 1st edition of the European P2P Conference. This P2P Conference was certainly a memorable one! Taking place at the wonderfully unique RISEBA Architecture and Media Center H2O 6, this event brought together people from 24 nations representing the entire community to display just what makes P2P crowdlending so unique – its diversity, its cross-sectoral nature, and its collaborative spirit.

The event, hosting interesting keynote speakers, an array of informative presentations, and topped off with a fun evening and second-day entirely dedicated to networking opportunities.

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Portfolio Update: May 2019

5 - May - Très Riches Heures du duc de Berry Hi Savings4Freedom friends! May was a consolidation month, looking to better understand how to manage my P2P investments and maximize their potential. I’m especially proud for finally being able to present you with a dedicated page where I compare the multiple P2P lending platforms I have accounts on. 10 - Evaluation

Compare P2P Lending Platforms

Since the number is growing in a significant way, there is a need to quickly compare and share my honest opinion. Please feel free to offer your input on the comments box or contact me directly. P2P_Conference_Riga2019 I’m really happy to travel this week to Riga to join and meet other P2P crowdfunding enthusiasts for the first European conference. It will be a wonderful opportunity to learn, meet with platform representatives and open a direct dialogue with other investors. But, without any further due, let’s see the numbers!

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P2P Conference Riga’19

P2P_Conference_Riga2019
The European P2P investment community is gathering in Riga next June 7-8 to discuss the future of the industry.
You can join the conference buying your ticket here: https://bit.ly/2UtHuUZ
 
This is a great opportunity to learn and meet with leading platforms, investors and experts!
 
#S4F #Savings4Freedom #P2P #Peer2Peer #Investments #Riga

 

Portfolio Update: April 2019

Hi Savings4Freedom friends!

February was a specially painful month for me. The loss of a very important family member is always a defining moment in everyones life… apologies for not publishing last months report. I updated all information on the blog over time, but not a post… thank you for understanding.

Live goes on and here is the April 2019 S4F report.

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Investing in Crowdlending: some important notes…

©Photo. R.M.N. / R.-G. OjŽda

Hi Savings4Freedom friends!

Some quick notes before you start investing in crowdlending platforms…

When you research a new crowdlending platform, it is not only important to look after the expected return and platform usability… There’s quite a few other, more relevant details to evaluate before investing:

  • How old is the platform?
  • Who is the management team?
  • How do their financial reports look?
  • Is it a single- or multi-loan originator platform? How many loan originators do they have?
  • Do they offer buyback guarantee on your loans?
  • What is the minimum investment in loans?
  • Which loan types do they offer?
  • Do they have autoinvest functionality?
  • Do they accept investors from your country?

For each of the platforms I present on S4F you will find a review in their info pages, based on my experience. It is a mix description based on credibility, size, functionality and support as criteria for the review. I also try to read what is the word on the street from other investors in the personal finance ecosystem.

Please feel free to contact me over email [email protected] and share your opinion, comments or suggestions on the topic above.

If you enjoyed this post, please hit the like button below and/or share it with your friends. Thanks for the support!

Portfolio Update: December 2018

©Photo. R.M.N. / R.-G. OjŽda

Hello Savings4Freedom friends!

For the first time I’m sharing my monthly update.

I will try to offer you these updates on the 1st day of every month. The idea is to provide you with a transparent manner to check my monthly returns and the cumulative results of my investments.

Over the next month I will work to improve the blog layout and structure. I welcome any suggestions you may have to enhance how the information is presented. If you are here for the first time, please check out the other pages on the blog and let me know your opinion. Thank you for your support!

Without further due, let’s check the results.

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Telling my story towards financial freedom…

csmboto picture

I’m Carlos, a 33 years old PhD, and startup founder. I live in Portugal with my wife. I always had the mental drive to save money, but never with financial independence in mind. Only at the beginning of 2018, I decided to structure my efforts towards freedom. This blog tells you all about my path, decisions, and mistakes.

I face strong limitations regarding my financial freedom, however, I don’t have any doubt that I will be able to achieve this personal goal of becoming financially free. Anyone can reach financial independence. It’s all about the way you wish to live and the costs necessary to sustain such a living standard.

I learn to save money with my Father. He was a hardworking and honorable man, entirely committed to supporting his family. I saw his effort to support my studies and his energy to provide me the opportunity to fly high without financial concerns. My Father is my hero.

There are many different ways to achieve financial independence, but you always will need to follow these:

  1. Keep a simple lifestyle.
  2. Maximize your income streams.
  3. Save and invest wisely.

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